Setting Up Training Costs

This chapter provides an overview of training costs and discusses how to set up:

• Training cost currency.

• Training cost units.

• Default training costs.

• Student costs.

• Training budgets.

Understanding Training Costs

This section lists prerequisites and common elements and discusses:

• Training cost and budget setup.

• Training currencies.

Note. If you aren’t administering training budgets, you don’t need to set up the budgeting tables discussed in this chapter. However, to enter costs on training administration pages, you must set up the Training Base Currency and the Cost Unit tables.

Prerequisites

Before you set up training costs, you must:

• Set up training tables for vendors, instructors, training facilities, and equipment.

• Define course codes and training programs.

Common Elements Used in This Chapter

Training Cost and Budget Setup

To use the Budget Training business process in PeopleSoft, you need to set up a budgeting structure. Once you set up the basic costs, you can enter budgets for departments in the organization.

To set up training costs and budgets:

1. Set up a training currency.

   In Budget Training, the system converts costs into a base currency that you define. For the conversion to work, you also define the exchange rate to use.

2. Review cost units.

   Cost units are associated with a cost amount. For example, you might measure instructor costs per hour or per day, but the cost unit of mileage might be per kilometer. To enter a cost, enter the amount and then select a cost unit for that amount. PeopleSoft delivers a set of cost units in the Cost Unit table, and you can add cost units.

3. Set up default vendor, facility, equipment, and instructor costs.

   To create accurate budgets, record default costs, such as vendor or facility costs, for each training element. You can set up default costs for the catalog and use them as defaults for the course costs.

4. Set up student costs.

   Training budgets include the cost of sending an employee to a course. For example, if an employee’s time is normally billed to a client, time in training represents a loss in revenue.

5. Set up budget periods and departmental budgets.

See Also

Setting Up Default Training Costs

Setting Up Student Cost

Setting Up Training Budgets

Training Currencies

As you work in the Budget Training business process, the system displays up-to-date costs without running a periodic batch process to update costs or currency conversion information. The system can provide this immediate, updated cost information because it calculates costs as soon as you enter them into the system. The system converts all amounts to a single base currency and stores the computed costs in two training cost tables, TRN_ALL_COST and TRN_CST_ELEMENT.

When you open a summary page in the Budget Training or Administer Training menu to review cost information for an employee, a department, or the entire organization, the system converts the costs in the training cost tables to the display currency that is appropriate for the organizational level. Display currencies can be different from the training base currency.

Note. Departments can have display currencies that are different from the budget base currency for your organization. Depending on the business unit and the department that an employee belongs to, the employee level display currency could be different from your organizational currency. For a budget period, you associate a base currency with a business unit, and with the departments that are associated with that business unit, in the Budget Period table (BUDGET_PERIOD_TBL).

To provide a consistent means of tracking and maintaining training costs, you specify a training currency exchange rate. This ensures that all training costs are consistently converted over the budget periods using a single conversion rate. Specifying a training currency exchange rate helps insulate a training process from external fluctuations in exchange rates and provides you with consistent cost information through the budget period.

To set up training cost currency information:

1. Create a currency rate type for Budget Training.

   Add a new rate type for Budget Training from the General Options menu.

2. Set up a training currency exchange rate.

   Define the exchange rates that you want your Budget Training business process to track by selecting Define Business Rules, Define General Options, Setup, Market Rate.

3. Set up the base currency for Budget Training.

   Even if you have already defined a base currency for PeopleSoft HRMS in the Define General Options menu, you must define a special training base currency before you can establish any training costs in the Training Administration business process.

Training Base Currency Defaults

When you’re entering training costs on the Training Administration and Budget Training pages, you need to understand where the default currency code is coming from and how the system determines the currency defaults in the Administer Training business process.

In Budget Training, a further level of currency manipulation considers the nature of the cost before any cost conversions are performed.

A relationship is established between the nature of the cost and the use requirement at cost summary time. The nature of the cost describes the point in the business process at which you are reviewing costs. The following table describes this relationship:

Training Cost Currency Conversions

The following table explains the training cost currency defaults in the Budget Training and Administer Training business processes. The table also details how the system uses the budget period begin dates or effective dates to establish the exchange rate to use for converting costs from one currency to another.

The date that the system uses to convert to the base currency and the date that the system uses to convert to the display currency are not the same, except for the job code cost. The system uses the effective date of the course and catalog costs to convert to the base currency and the begin date of the budget period to convert to the display currency.

The system uses different dates to process the two currency conversions. If the length of time between the two dates is great enough to allow for changes in the currency conversion rate that your organization ordinarily uses, the displayed cost could be different from the cost that you originally entered. To avoid this problem, you define a special exchange rate on the Exchange Rate table for use by the Budget Training business process.

Because you are comparing training budgets with training costs over a period of time (budget period), you set up a unique training currency exchange rate that enables you to track training costs consistently through the budgetary cycle. To do that, you set up an exchange rate type specifically for the training budget.

See Also

Setting Up Default Training Costs

Setting Up Student Cost

Setting Up Training Cost Currency

To set up training cost currency, use the Base Currency (TRN_BASE_CURRENCY) component. Use this component to convert all costs to one common currency that appears in the training plan and is the sum of all training costs. The first step in setting up training costs is to define the currency to use in the Budget Training business process.

This section discusses how to set up a currency and currency exchange rate.

Page Used to Set Up Training Cost Currency

Specifying the Base Currency for Tracking Cost Amounts

Access the Base Currency page.

Base Currency

Select a currency code. While you can enter training costs in multiple currencies, the system converts any training costs in an Administer Training business process to the base currency that you enter here.

Exchange Rate Type

Select the currency for the Budget Training business process. If you’ve defined an exchange rate type for training, associate it with the training base currency here. The exchange rate type that you specify controls currency conversion processing in the Administer Training and Budget Training business processes. Note. You can define a currency exchange rate and currency exchange rate type specifically to track training budget costs. Warning! Make sure to set the Base Currency before entering any cost in Budget Training.

See Also

Setting Up Default Training Costs

Setting Up and Working with Currencies

Overview of Cost Units and Cost Type

You enter per unit costs for training components like facilities, vendors, books, and other materials on pages throughout the Budget and Administer Training business processes. The system uses the cost unit type that is associated with a training component to determine the subset of cost units to display as you enter cost information.

Using Views to Select the Right Cost Unit

To ensure that the system displays appropriate cost units when you enter different cost categories, the Cost Unit field prompts to a view that selects one or several cost units by specifying the cost unit type that is associated with the cost unit. For example, when you enter instructor costs, the cost unit prompts to the view TD_COST_UNIT_VW, which selects Time and Training cost units only.

For expenses, the system performs no special cost unit type selection: You can select any Cost Unit table (COST_UNIT_TABLE) values.

Using Cost Type and Duration Amounts

The duration cost unit is a display-only label that is based entirely on the cost unit that you select as the per unit cost to which the duration value is related. For example, when you enter a cost for instructors on the Course Session Cost table, two instructors might teach the same course session. They might work together to teach the course session at the same time, or one might present one portion of the session, and the other might may present a different portion. In either case, you need to specify how long each instructor works on this course session.

You enter a duration period for each instructor. The unit for this duration period depends on the cost unit that you selected as the per unit cost amount for the instructor:

• If the instructor costs 200 USD per person, per day, the duration cost unit is in days.

• If the instructor cost is 200 USD per person, per year, the duration cost unit is in years.

See Also

Understanding the Training Budget Planning Process

Setting Up Training Cost Units

To set up training cost units, use the Cost Unit Table (COST_UNIT_TABLE) component. The units on the Cost Unit table affect how you define specific costs for training components. With each training expense that you define, you associate a cost unit as a measurement criterion.

This section discusses how to specify the relationship between the cost unit and duration label on the Cost Type table.

Page Used to Set Up Training Costs

Specifying the Relationship Between the Cost Unit and Duration Label

Access the Cost Unit Table page.

Warning! Changing data on this page can negatively affect the way that the system calculates expenses and can require additional PeopleCode changes and other modifications that affect all Budget Training cost calculations.

Note. (FRA)Company Costs, C, defines costs that are to be charged at the company level. This value is defined on the Trn 2483 Parameters Setup page and is fully reported on the 2483 report.

Paid Hours,P, is used by the system as the default during duration conversion.

For a more accurate computation with cost–based on employee salary, use the cost unit, P. When prorating the student/instructor monthly salary with the session duration, the proration is done with the paid hours field instead of the factor. For example if the session is equal to 10 hours, and the instructor is paid 200 EUR per hour, when you look on the Trainees Salary Costs page for this employee, you will see that the salary for January is 200 EUR per month, and the Paid Hours are 180 hours.

When prorating the instructor costs with the session duration, you get 200 / 180 * 10. If the cost unit were Pers/Month, the computation rule would be 200 / (1920/12) *10= 200/160 * 10.

If you select Month, make sure that month equals twenty (20) days. If you select Year, your result may not be accurate.

Note. Cost elements are updated online as soon as training element costs are entered. If you change the annuity factor during a budget period, costs already computed are not affected. The annuity factor should be set before entering any costs in the system.

Setting Up Default Training Costs

To set up default training costs, use the Course Costs (TRN_COST_TABLE) and the Catalog Costs (TRN_COST_TABLEC) components. This section provides an overview of training costs and discusses how to:

• Enter vendor, facility, and equipment costs.

• Define the source of training costs.

• Enter instructor costs and other expenses.

Understanding Default Training Costs

Training costs are defined in two parts: per unit cost and cost unit. The per unit cost is the amount, and the cost unit is the unit that is associated with that amount. For example, if an instructor costs 100 USD per hour, the per unit cost is 100 and the cost unit is hour.

When you specify course element costs on the Catalog Cost table, the Course table, and Course Session Cost table, some cost elements tend to be the same. For example:

• Instructors tend to charge the same fee for teaching different courses.

• Facility costs and vendor costs tend to remain constant for different courses.

Because these costs tend to remain the same across courses and sessions, the system stores the instructor cost on the Instructor table (TRN_INSTRCT_TBL), the Training Facility table (TRN_FACIL_TBL), and the Vendor table (TRN_VENDOR_TBL). The system uses this cost as the default cost for instructors, vendors, and facilities whenever they are referenced in the Administer Training and Budget Training business processes.

Catalog Costs

Use the Catalog Cost component to record cost information for a particular category and related subcategories in a training catalog. This information can be used as default values for the Course Cost component.

In a course catalog, you can organize the courses into categories and subcategories for easier administration. You can associate a cost with each category and subcategory. Then when you assign a course to a category or subcategory, the system assigns the subcategory cost as the default cost of the course.

If you assign a course only to a category, the system uses the category cost. If you assign the course to a subcategory, the system uses the subcategory cost. Using subcategories enables you to define the default values more exactly, but they might not be necessary for your organization.

Course Session Costs

Specifying costs at the course session level enables you to track differences in training costs that can vary depending on where sessions are taught and who is teaching. This is important because different instructors may charge different rates to teach the same sessions of a course. When you enroll a student in a session, the system looks at the Course Session Cost table to determine how much the training will cost.

Note. The Catalog Cost and Course Cost components are nearly identical and share the same fields.

Note. The Budget Training process uses catalog and course costs only. Cost demands can also occur on the catalog and course level. Session costs are only used by the Administer Training business process. When trainees are enrolled in a session, Administer Training computes the cost at a session level.

See Also

Administering Course Sessions

Pages Used to Set Up Default Training Costs

Entering Vendor, Facility, and Equipment Costs

Access the Catalog Costs - Vendor, Facility, Equipment page.

To use the course costs from the category or subcategory as the default costs, set them up using the Catalog Cost component.

Vendor

If an external vendor runs the course, define the default vendor costs here.

Facility

Session Equipment/Materials

See Also

(FRA) Producing the French Training Report 2483

Defining the Source of Default Costs

Access the From which Category/Sub-Category page.

Entering Instructor Costs and Other Expenses

Access the Catalog Costs - Instructor, Expense page.

Instructor

Expense

Overview of Student Training Cost Defaults

Before you begin entering costs that are associated with job codes and employees, it’s important to understand how the system determines the default training cost values that it displays on the system pages where you track training costs. The following chart explains the training cost defaults in the Budget Training business process:

See Also

Defining Training Requirements

Setting Up Student Cost

To set up student cost, use the Job Code Training Cost (TRN_JOB_ SLR_ COST), and the Trainees Salary Costs (TRN_EE_SALARY_COST) components. This section discusses how to:

• Identify the compensation cost for training an employee.

• Identify the cost for training an employee.

• Process training costs for a group.

Note. When the system processes training costs for an employee, and no employee training cost is specified on the Employee Training Cost table, the system uses the job code training cost. If you’ve specified training costs at both levels, the employee-level cost takes priority.

Note. (FRA) If your organization runs Global Payroll for France, you can extract Administer Training and Budget Training costs from the payroll system and apply the costs to employees in a specified group ID.

Understanding Student Costs

To track the total cost of an employee who is taking a training course, you need to record:

• The costs that are associated with the course, such as the price of materials and instructors.

• The cost to the organization of the employee’s lost work time.

  For example, if employees typically bill their time to clients, then they cannot bill time while they are in training. This represents an additional training expense.

Note. The Paid Hours value on the Trainees Salary Costs page — Set Up HRMS, Product Related, Enterprise Learning, Trainees Salary Costs calculates how many hours the employee works for the related cost unit, that is, if the cost unit is Pers/Month, then the number of hours is related to one month.

To track payroll costs that are associated with training, you can specify compensation costs at the job code level and at the individual employee level. To associate payroll costs with a group of similar job codes or a group of employees, use the Update Salary Cost page to perform a mass update of the system.

Pages Used to Set Up Student Costs

Identifying the Compensation Cost for Training an Employee

Access the Job Code Training Cost page.

Per Unit Cost

Enter the per unit cost for the job code. Because the Per Unit Cost and Cost Unit fields are effective-dated, you can enter standard training costs for job codes, which can change over time.

Processing Training Costs for a Group

Access the Update Salary Cost page.

Note. The Job Code Training Cost and Trainees Salary Cost pages enable you to associate payroll costs with a job code and by employees one at a time. Use the Update Salary Cost process to specify a per cost figure and a cost unit metric to apply on the specified effective date to a group of job codes or employees.

SetID and Jobcode Scroll Area

Select the SetID and Jobcode to which you want to apply the selected cost. Add as many SetIDs and Jobcodes as necessary.

(FRA) France

Writable arrays are payroll elements used to store payroll results. This is a single table which interfaces between the payroll system and the training business process. When using a payroll system other than PeopleSoft, the table can be used to import salaries into training business process.

The Global Payroll for France business process computes salary and paid hours for training and stores information into a writable array (GPFR_TRN_WA).

See Understanding Accruals.

Calendar Selection Criteria

Calendar Process List

See Also

PeopleSoft Enterprise Global Payroll 8.9 PeopleBook

PeopleSoft Enterprise Global Payroll for France 8.9 PeopleBook

PeopleTools PeopleBook: PeopleSoft Process Scheduler

Identifying the Cost for Training an Employee

Access the Trainees Salary Costs page.

Note. Click the tabs in the scroll area for multiple views of this page. Document fields that are common to all views first.

Common Page Information

Job Tab

Period Tab

See Also

(FRA) Producing the French Training Report 2483

Setting Up Training Budgets

To set up training budgets, use the Budget Period Table (BUDGET_PERIOD_TBL) and the Department Budget (TRN_BUDGET_TBL) components. This section discusses how to:

• Define budget periods.

• Define amounts allocated to departments.

Pages Used to Set Up Training Budgets

Defining Budget Periods

Access the Budget Period Table page.

You can also specify the base currency for department budgets and training costs. This ensures that you always compare budgets and costs in the same currency.

Use this budget to see how the estimated training costs that are based on department training demand compare to a department’s allocated training budget.

A budget period is a period of time for which a training budget is established. Your company’s business needs determine the length of the budget period. Typically a budget period covers one year. However, the length of the budget period depends on both business requirements and process cycles; the period could be a quarter, a month, or any other duration.

When you define a budget period, you associate it with one or more business units.

Important! When you establish a budget period, remember that course sessions must fall within the budget period that is to be included in the budget and its tracking. A course session cannot span two budget periods.

Budget Period Details

See Also

Setting Up Training Cost Currency

Defining Business Units

Defining Amounts Allocated to Departments

Access the Department Budget page.

Allocation Date	Enter the date that you allocate the budget to the department.
Originating Emplid (originating employee ID)	Select the ID of the person who allocated the budget.
Budget Amount	Enter the currency to use when you compare the actual and budget costs by department. The system also uses this value as the currency default value on pages where the Budget Training process calculates department budget costs to ensure that costs and budget are in the same currency.

See Also

Setting Up Training Cost Currency