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Using Cost Center Override Allocated Based on Calc Base

On the Basic Info tab of the Earnings And Deductions, the cost center override option displays only for an earning, benefit, or deduction whose calculation method is Amount per Hour, Percentage Of Base, or Flat.

Guidelines for Using

If you select this option, the payroll program prorates these types of wage expenses according to the earnings/deductions on which they are based. The program then distributes these wage expenses to the cost centers (G/L accounts) of their base earnings/deductions.

Payroll uses the items in the Base Earnings Include field of the Calc Base tab (of the Earnings And Deductions) when determining how to prorate an earning/deduction code. The deductions in the Base Deductions Include field, and the taxes in the Base Taxes Include field (both on the Calc Base tab), will be deducted from an earning base to determine the base.

If you do not select the cost center override option, Sage 300 Payroll distributes the wage expenses to the accounts as specified on the Earning /Deduction Codes setup window.

Click here to see an example of how this works:

Assume you have set up the following earnings:

Earning/Deduction Examples	Calculation Base Earnings	G/L Account Cost Center
Salary	Not Applicable	1000-001
Bonus	Not Applicable	1000-002
Retirement Plan	50% of both Salary and Bonus	1000-003
Flat Deduction	Both Salary and Bonus	1000-004

Assume the following wage expenses:

Type	Amount
Salary	$100
Bonus	$300
Retirement Plan	$200 (50% of $400)
Total	$600

Assume the following deductions:

Type	Amount
Flat Deduction	$60

If you do not select the option, Cost Center Override Allocated Based on the Calc Base, the payroll program distributes the amounts to their respective cost centers; that is:

Salary. The amount of $100 goes to 1000-001
Bonus. The amount of $300 goes to 1000-002
Retirement Plan. The amount of $200 goes to 1000-003
Flat Deduction. The amount of $60 goes to 1000-004

If you select the option, Cost Center Override Allocated Based on the Calc Base, the payroll program distributes the amounts as follows:

Salary. The amount of $100 goes to 1000-001
Bonus. The amount of $300 goes to 1000-002
Retirement Plan. The amount of $200 goes to:

$50 (50% of the $100) goes to 1000-001
$150 (50% of the $300) goes to 1000-002
Nothing goes to 1000-003

Flat Deduction: the amount of $60 goes to:

$30 ($300/$600 of the $60) goes to 1000-001
$30 ($300/$600 of the $60) goes to 1000-002
Nothing goes to 1000-003
Nothing goes to 1000-004