To meet the requirement where a tax deduction element credits the same account for all employees irrespective of home department, how should you define costing?

• A. You cannot meet this requirement because the costs are automatically apportioned to the respective departments.
• B. You create the costing with distributed option.
• C. You create Fixed Costing on tax deduction element.
• D. You create the costing with Costed option on tax element.

Answer: (C)

The key idea is how the element posts to the general ledger regardless of the employee’s department. By using Fixed Costing on the tax deduction element, you pin the posting to a single GL account (and the associated balancing segment values) for that element. This means every employee’s tax deduction credits the same account, no matter which department they belong to.

Options that distribute or cost the element (such as distributed or costed methods) would allocate the deduction across different departments or cost centers based on rules or percentages, so the GL account would vary by employee. Saying it cannot be done isn’t accurate because Fixed Costing provides the uniform posting you need.