Employee Multi-Cost Allocation

Jisr introduces a new and innovative feature called Employee Multi-Cost Allocation, which aims to simplify cost distribution and improve the accuracy of financial reporting.

What is the Multi-Cost Allocation Feature?

This feature allows users to distribute employee-related costs across multiple cost centers automatically or manually. For example, if an employee works on multiple projects or departments, their salary or other related expenses can be allocated to the respective cost centers based on predefined percentages.

How to Allocate Costs to Multiple Cost Centers (Practical Example)

Cost allocations to multiple cost centers can be entered during the accounting integration setup process. Users can also make any adjustments to the allocation even after the accounting integration between the Jisr HR system and the client's accounting system is complete.

1. After completing the subsidiary integration tab, move to the cost center integration tab. Clicking the "Employees" tab displays all employees in the previously selected subsidiary companies.

2. The user selects the cost centers to be linked to each employee.

3- The user determines the cost centers that will be linked and determines the percentages for each cost center, noting that if one cost center is linked to the employee, the distribution percentage for this cost center will be 100%, and it is required that the total distribution of cost centers equals 100%.

4- If more than one cost center is selected for a single employee, the system will allow the user to enter the distribution percentages for each cost center.

Note: The total cost allocation ratios to cost centers must equal 100%. The total ratios must not be less than 100% or more than 100%.

5- After entering the percentages, the user clicks “Save” to display the percentages of cost distribution to the employee’s cost centers.

The user can also distribute costs in the “Employee Distribution” step when setting up the accounting integration, by clicking “Add Cost Center” next to the required employee, then selecting “Cost Distribution.”

Then select "Cost Center Type"

Then choose departments and enter the cost distribution ratios.

Another way to enter cost allocation ratios from the employee's file

1. The user navigates to the employee's file by clicking "Employee Data," then selecting the desired employee.

Then select the "Cost Allocation" tab.

2- Then the user clicks on “Set Cost Center”, selects the cost centers to be added, and then clicks on “Save”.

3- The user can choose to allocate costs to the cost center.

---

Note: When an employee's cost center changes, automatic switching between cost centers will occur.