To distribute the costs of a benefits element that is at the payroll relationship level to employee earnings, how should you define the costing rules?

• A. Create the costing of type "Costed" and because it is a relationship level element, it automatically distributes the costs over earnings elements
• B. Create a distribution group with earnings elements and create the distributed costing on relationship level element
• C. You cannot distribute the costs of a fixed element
• D. Create the costing as Fixed Cost on payroll relationship level element, because the element is at relationship level. It automatically distributes costs for earnings elements, which are at assignment level

Answer: (B)

Distribute costs from a benefits element defined at the payroll relationship level by using distributed costing with a distribution group. Set up a distribution group that lists the earnings elements that will receive portions of the cost and define the proportions for each element. Then on the relationship-level element, enable distributed costing and reference that distribution group. This makes the system allocate the relationship-level cost to the specified earnings elements (which are at the assignment level) according to the defined proportions.

The other approaches don’t fit because simply choosing a costing type like “Costed” doesn’t automatically spread the cost to earnings elements without a distribution setup, and fixed-cost approaches on a relationship-level element do not create the required automatic distribution to earnings elements.