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Administrator Guide
Last Updated: 2025-01-24
Concept: Costing Allocations Priority

Concept: Costing Allocations Priority

Costing Hierarchy for Employee Earnings

Workday:
  • Evaluates payroll result lines and refers to the hierarchy to determine which rule to apply.
  • Applies the first rule found in the hierarchy and obtains the worktags configured at that level.
  • Supplements with the worker's default organizational assignments for the position, if available. Otherwise, supplements with the worker's default organizational assignments for the:
    • Processing position for Payroll for Canada and the U.S.
    • Primary position for Payroll for Australia, France, and the UK.
Hierarchy
:
  1. Worktag overrides entered through payroll input, on-demand payments, and manual payments.
  2. Worktag values entered through:
    • Time Tracking.
    • Compensation (one-time payments and period activity payments).
    • Earning for a worker's position.
  3. Worker earning (select a worker and an earning on the
    Assigned Costing Allocations
     task).
  4. Earning (select an earning on the
    Edit Earning and Employee Deduction Costing Allocations
     task).
  5. Worker's position (select a worker and a position on the
    Assigned Costing Allocations
     task).
  6. Position restrictions (select a position on the
    Assigned Costing Allocations
     task).
  7. Worker (select a worker on the
    Assigned Costing Allocations
     task).
  8. Supervisory organization of a worker's position.
  9. If multiple jobs:
    1. The processing position's supervisory organization for workers in Canada and the U.S.
    2. The primary position's supervisory organization for workers in Australia, France, and the UK.
  10. For Payroll for Canada and the U.S., Worker's organizational assignments based on position. Workday selects the position from the associated payroll result line, if it exists. Otherwise, Workday uses the position on the payroll result. This position is either:
    • The processing position when the Processing Position for Workers with Multiple Jobs feature is enabled.
    • The worker's primary position.
  11. For Payroll for Australia, France, and the UK, Default Organizational Assignments (for a specific worker).
Scenario (CAN, USA)
John has default organizational assignments for his processing position set as:
  • Cost Center -
    CC 2600
  • Fund -
    Fund 1
  • Location -
    San Francisco
Scenario (AUS, FRA, UK)
John has default organizational assignments for his primary position set as:
  • Cost Center -
    CC 2600
  • Fund -
    Fund 1
  • Location -
    San Francisco
Example 1 (CAN, USA)
The payroll administrator enters a worktag override through pay input on the processing position as
Fund 2
.
The resulting costing for John is
CC 2600
,
Fund 2
, and
San Francisco
, because:
  • From the hierarchy, the override instructions entered through pay input have higher priority.
  • Workday supplements the worktags
    CC 2600
     and
    San Francisco
    , from the default organizational assignments.
Example 1 (AUS, FRA, UK)
The payroll administrator enters a worktag override through pay input on the primary position as
Fund 2
.
The resulting costing for John is
CC 2600
,
Fund 2
, and
San Francisco
, because:
  • From the hierarchy, the override instructions entered through pay input have higher priority.
  • Workday supplements the worktags
    CC 2600
     and
    San Francisco
    , from the default organizational assignments.
Example 2
The payroll administrator enters a:
  • Worktag override through pay input on the processing position as
    Fund 2
     (CAN, USA).
  • Worktag override through pay input on the primary position as
    Fund 2
     (AUS, FRA, UK).
  • Costing override for a worker earning as
    Fund 3
     and
    Dallas
    .
The resulting costing for John is
CC 2600
,
Fund 2
, and
San Francisco
, because:
  • From the hierarchy, override instructions entered through pay input have priority over the costing override for a worker earning.
  • Workday supplements the worktags
    CC 2600
     and
    San Francisco,
     from the default organizational assignments.
Example 3
The payroll administrator enters a costing override for a worker earning as
Fund 3
 and
Dallas
.
The resulting costing for the earning is
CC 2600
,
Fund 3
, and
Dallas
, because:
  • From the hierarchy, the costing override for a worker earning has higher priority.
  • Workday supplements the worktag
    CC 2600,
     from the default organizational assignments.

Costing Hierarchy for Employer-Paid Expenses (Debits)

Workday evaluates payroll result lines for employer-paid expenses (debits) and refers to this hierarchy to determine which rule to apply:
  1. Worktag overrides entered through payroll input.
  2. Allocations, configured on the
    Edit Employer Paid Expense Costing Allocation
     task, defined by:
    1. Pay group, company, and pay component.
    2. Pay group and pay component.
    3. Pay group and company.
    4. Pay group.
  3. Configurations defined using the
    Edit Employer Paid Expense Costing Allocation Defaults
     task.
  4. Based on the allocation of earnings and applies to employer-paid debits only.
  5. (CAN, USA) Worker's organizational assignments based on position, when you don't have earnings in your payroll results. Workday selects the position from the associated payroll result line, if it exists. Otherwise, Workday uses the position on the payroll result. This position is either:
    • The processing position when the Processing Position for Workers with Multiple Jobs feature is enabled.
    • The worker's primary position.
  6. (AUS, FRA, UK) Worker's Default Organizational Assignments, when you don't have earnings in your payroll results.
If you've enabled Retroactive Costing, costing for employer-paid expenses associated with retroactive earnings uses the worker's default organization assignments if the employer-paid expense lines don't have a retro subperiod that matches the retro pay period.

Costing Hierarchy for Employer-Paid Expense Liabilities (Credits)

Workday evaluates payroll result lines for employer-paid expense liabilities (credits) and refers to this hierarchy to determine which rule to apply:
  1. Default setting for costing overrides on credits, if applicable, on the
    Edit Employer Paid Expense Costing Allocations
     task.
  2. (CAN, USA) Worker's organizational assignments based on position. Workday selects the position from the associated payroll result line, if it exists. Otherwise, Workday uses the position on the payroll result. This position is either:
    • The processing position when the Processing Position for Workers with Multiple Jobs feature is enabled.
    • The worker's primary position.
  3. (AUS, FRA, UK) Worker's default organizational assignments.

Costing Hierarchy for Employee-Paid Deductions

Workday evaluates payroll result lines for employee-paid deductions and refers to this hierarchy to determine which rule to apply:
  1. Worktag overrides entered through payroll input.
    When worktag balancing is on, Workday gets the balancing worktag from the worktag balancing rule set.
  2. Employee deduction (for all workers).
  3. Supervisory organization of the worker's position.
  4. (CAN, USA) Supervisory organization of the worker's processing position (if multiple jobs).
  5. (AUS, FRA, UK) Supervisory organization of the worker's primary position (if multiple jobs).
  6. (CAN, USA) Worker's organizational assignments based on position. Workday selects the position from the associated payroll result line, if it exists. Otherwise, Workday uses the position on the payroll result. This position is either:
    • The processing position when the Processing Position for Workers with Multiple Jobs feature is enabled.
    • The worker's primary position.
  7. (AUS, FRA, UK) Default Organizational Assignments (for a specific worker).