Creating Cost Allocation Flexfield

Costing is the most crucial setup to be done to transfer the Payroll data to GL.

Costing can be done at 5 different Levels in Payroll i.e. Payroll,Element Link,Organization,Assignment and Element Entry with Payroll being the highest default and Element Entry being ultimate override.

Levels can be viewed in this diagram as provided by Oracle.

Also, before creating Cost Allocation Flexfield we have to understand the Accounting Segments used in GL as we need to synchronize our Payroll Data with GL. Open Accounting Flexfield to understand it.

Now, we will create a Costing Flexfield.

Navigation: Application Developer>Flexfields>Key>Segments

Query Cost Allocation Flexfield.
Unfreeze the Flexfield Definition.
Create a New Cost Allocation Flexfield.
Click Allow Dynamic Insert.

Click on Segments.

Click on each segment's Flexfield Qualifier and set the levels at which you want to enter the accounting

Freeze the Flexfield Definition and save it.