Cost Accounting for Absorption accounts

[kinovisques]

Cost Accounting for Absorption accounts

Hello Cost Accounting

I have a quick question about Absorption accounts for Payroll and depreciation.

What would you recommend if we receive an automatic payroll journal, for Oracle Payroll and also an automatic journal for fix Assets.

Create the Liability
DR Salary
CR Liability

At the time of Payment
DR Liability
CR Bank

In order to debit the Absorption accounts do I need to create a Mass Allocation Journal in GL ?


Absorption account - This is used the most. It is credited by any resource usage, i.e. labor. It is debited from other systems outside manufacturing, i.e.,payroll.


Thanks