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The Integrated System

Labor Distribution: Frequently Asked Questions


General LD


Organization Suspense Account


Organization Default Labor Schedules


Labor Schedules


Distribution Adjustments


Suspense Account


Payroll Information


Discoverer Reports


Encumbrances


General

Will my employee be paid if I forget to set up a schedule in LD?
LD does NOT determine whether an employee will be paid. The HRMS record determines the pay for all salaried employees, while the HRMS and OTM entry determines the pay for all hourly employees. LD distributes the pay only if there is pay to distribute.

How is the expenditure type determined in Labor Distribution?
The expenditure type is determined by the information entered in the  HRMS assignment record. Labor Distribution relies on auto-pop which reflects the expenditure type according to the HRMS assignment record. When you set up a schedule line for the employee in LD, you will be required to select the expenditure type from the LOV. If you make an incorrect selection, the IS will correct the expenditure type when the payroll process runs. If there is a discrepancy between the HRMS assignment record and the information you enter in the schedule line, auto-pop will change the expenditure type to reflect the expenditure type determined by the HRMS assignment record information. However, the schedule line that you entered for the employee will not change. Any time you see that this has occurred, you should modify the schedule to reflect the correct expenditure type, using the start date for the current pay period.

How do I find out who entered a labor schedule against my PTAEOs?
In Labor Scheduling,

1. FIND the employee.
2. Select the appropriate Assignment.
3. Review the schedule line(s).
4. Place the cursor anywhere in the appropriate schedule line.
5. Using the Labor Scheduling menu, select HELP >Record History.

Record History records the following information:
• The initiator's userid name
• The date and time the schedule was created
• The userid name of the last person to update the record.
• The date and time the record was updated.

6. Navigate to the University home webpage: www.virginia.edu
7. Enter the userid in the Employee Search field.
8. When the search is completed, the username, phone number, organization, etc. are displayed on screen.

How do LD Suspense and Organization Labor Schedule Default accounts work?
Using the organization default labor schedule is a keying and maintenance shortcut for labor schedules. An organization default labor schedule is defined at the organization level. This eliminates the need for an individual labor schedule to be entered for each employee in the organization. Only the labor schedules that differ from the organization default labor schedule need to be entered for the employee.

The organization suspense account is defined at the organization level. The suspense account will be used if the PTAEO entered at the organization or employee level is invalid or if labor schedules are not defined at the employee and organization level. It will also be used if the schedule entered at either the employee assignment level or organization default labor schedule is less than 100%. This account ensures that all payroll costs are charged to a valid PTAEO and none are unaccounted. Charges to this account are temporary. All charges must be moved to a correct project and award on a regular basis.

Organization Suspense Account

What is an Organization Suspense Account?
The organization suspense account is defined with a unique project number used only for labor suspense charges for each organization. Charges are applied to the Organization Suspense Account any time the IS cannot find a schedule for an employee for the current pay period or any portion of the schedule is inactive - either at the employee assignment level or at the Organizational Default Labor Schedule level. In addition, the IS charges the Suspense Account any time it encounters a deviation from the rules as established for the validity of PTAEOs, including valid start and end dates, along with applying the rule that all PTAEO combinations entered must equal 100% total. Charges to this account are temporary. All charges must be moved to a correct PTAEO on a regular basis.

Why are all of my employees (faculty, staff, and students) being shown as Salary, Classified, Staff, FT, when in fact they are not?
Any time a charge is sent to Suspense, the expenditure type for all employees is changed to Classified, Staff, FT, and the fringe rate is applied at the Salary, Classified Staff Full-time fringe rate. When you initiate a Labor Distribution Adjustment, the correct fringe rate is applied.

How do I find out why a charge was sent to suspense? How can I troubleshoot, and how can I correct it?
All pay amounts charged and credited to the Organization Suspense Account MUST be removed (by performing a distribution adjustment) and assigned to the appropriate PTAEO combination(s). There are several tools available that you can use to find out why the charges were sent to suspense.

Why do I have a credit on my suspense account? What can I do to remove it?
If an employee is overpaid, when the refund is received, the credit will be noticed on the Organization’s Suspense Account.

To correct: Initiate a Credit Distribution Adjustment to move the credit to the appropriate PTAEO.

The Discoverer report named IS.LD_Labor Suspense Detail report includes the suspense reason code.

The most common reasons a charge will be made to an organization’s labor suspense account are as follows:

1. There is no schedule at the employee level and there is no Organization default labor schedule in the labor scheduling hierarchy.

To Troubleshoot: Find and view the employee’s labor schedule. Click [Refresh Display] and view the appropriate pay period. If there is no schedule for the employee, run the IS report (Scheduling Reports) named Organization Default Labor Schedules for the appropriate payroll dates. If there is no Organization Default Labor Schedule for the period of time in question, this is why the charge was sent to suspense.

To correct: Set up a schedule for the employee using the current pay period start date.
To correct: Initiate a labor distribution adjustment for the pay periods affected.

2. If any schedule line totals less than 100%. (The remaining unaccounted percentage will be charged to suspense.) Example: You enter a schedule for 75% on a PTAEO and do not schedule the remaining 25% before the payroll processes. The remaining unscheduled 25% will go to suspense.

To Troubleshoot: Find and view the employee’s labor schedule. Click [Refresh Display] and view the appropriate pay period on the right side of the screen. The percentages will be totaled at the bottom for each pay period(s). Another way to find out whether an employee’s schedule was less than 100% is to run the LD Standard report named Employee Labor Schedules – [Exception]. The exception report will give you information on all employees who were scheduled at less than 100% for the period indicated.

To correct: Enter a labor schedule using the current pay period start date.

3. If the PTAEO is invalid when the payroll is processed.

4. If the project, task, or award is not in an approved status at the time payroll is processed.

5. If any portion of the PTA is in workflow when payroll is processed.

6. If a grant has transactions controls in place that excludes certain expenditure types.

To troubleshoot (3-6): Using a GM (Grants Accounting) responsibility, view workflow history, and check for transactions controls (applicable to federal funded grants). Note: GM Project Manager or GM Award Manager can see if at P-A combination is in workflow or can tell the LD Specialist if they have de-linked or changed a linkage. If the workflow process is complete by the time you check, there is no history to tell you that it was in workflow during payroll processing. Best solution is to have good communication between project/award managers and LD specialist regarding changing linkages. GM Setup Specialist can view Transactions Controls.

7. If the employee assignment record in HRMS has a future end date already entered. Future end dates in the HRMS record sometimes causes a conflict with the payroll process, sending the charge(s) to suspense.

To troubleshoot: Using an HRMS responsibility, view the assignment record.

8. Terminated employee’s labor schedule has been ended using the last day of employment. (Note: If the last day worked is not the last day of the pay period, the remaining days in the pay period will be sent to suspense. Note: End dating the labor schedule with any end date for a terminated employee will result in the leave payouts being charged either to the Org Default Labor Schedule (if there is one) or to the suspense account.

To correct 2 - 8: Initiate a labor distribution adjustment for the pay periods affected.

Why do I have a credit on my suspense account? What can I do to remove it?
If an employee is overpaid, when the refund is received, the credit may be applied to the Organization’s Suspense Account.

To correct: Initiate a Credit Distribution Adjustment to move the credit to the appropriate PTAEO.

Organization Default Labor Schedules

What is the Organization Default Labor Schedule Account, and how does it work?
The Organization Default Labor Schedule Account is a labor schedule that should be setup as the "main" account for the organization. As the main account, organizations should select PTAEO combination(s) used to pay the majority of their employees to enter at this level. If a single set of PTAEO combination(s) is not used for the majority of the organization’s employees, the department should select the most widely used PTAEO combination(s) in the organization to enter at this level.

Once the Organization Default Labor Schedule is setup, pay amounts for all employees belonging to the organization will automatically be paid from this account by default unless a labor schedule is entered at the employee assignment level for the individual employee. Therefore, any employee within an organization who is not paid/funded from the same PTAEO combination(s) as the Organization Default Labor Schedule must have a labor schedule entered at the employee assignment level to specify which PTAEO combination(s) their pay should be paid/funded.

Any earnings elements that are not scheduled at the earnings element level, within the employee assignment level, will automatically be paid/funded from the Organization Default Labor Schedule.

For example: John Smith receives two earnings elements - Regular Salary and Overtime Time and Half . The Regular Salary earnings element is scheduled to be paid/funded from PTAEO combination(s) using an earnings element level schedule. The Overtime Time and Half earnings element is not scheduled at the employee level. When pay is imported from the HR/Payroll system into LD, Smith's regular salary will be paid/funded from PTAEO combination(s) entered at the earnings element level within the employee assignment level. While the time and a half overtime will be paid/funded from the PTAEO combination(s) entered at the Organization Default Labor Schedule level.

How are my employees mapped to the Organization Default Labor Schedule?
The organization identified on the employee's assignment record in HRMS is mapped to the Organization Default Labor Schedule.

How do I change an Org Default Labor Schedule?
The person with the LD Approver/Setup responsibility is the only individual who can set up or change an Organization Default Labor Schedule. Changing a schedule is a two step process. [Find] your organization and end date the current schedule. SAVE your work; close the window. Select [Setup], Select [Org Default Labor Schedules]. Enter your Org number, press the tab key, and enter the appropriate information. SAVE your work.

How do I know whether my organization has an Org Default Labor Schedule?
Run a standard report in the IS, Labor Distribution. From the Navigator screen in LD, open [Scheduling Reports], select "Org Default Labor Schedule Report."


Labor Schedules

When entering a labor schedule how do I know which assignment in LD to choose for my employee?
When you enter a labor schedule for an employee, you must select the correct assignment in LD. The LD assignment is equal to the employee's assignment identified in the HRMS assignment record. If you do not have an HRMS responsibility, run the Discoverer report IS.LD.Employee Assignments.

When I select Labor Schedules, the Labor Scheduling screen is displayed. How do I enter the employee information in this screen so that I can FIND the employee?
You will never enter an employee in LD. You will always find the employee, using the flashlight.

How do I know what effective dates to use when creating schedule lines for an employee?
You will always use the current and/or future payroll period.

How do I know what effective date to use to modify an employee's labor schedule?
You will always use the current and/or future payroll period. An existing schedule can be modified retro to end on the last day of the last payroll period, and the new schedule can begin on the first day of the current pay period.

When should I end date a labor schedule?
End date the schedule if: The employee is transferring to another organization with the same assignment; Employee's distribution is to switched to the Org Default Labor Schedule; The Award/Grant is ending; No longer want charges against a current PTAEO.

When should I NOT end date a labor schedule?
Do not end date the schedule if the employee is terminating from UVa.

How do I determine when I should use Labor Schedules and when I should use Distribution Adjustments?
Use Labor Schedules for actions that affect the current and/or future payroll period(s). Use Distribution Adjustments when the payroll deadline has been processed.

Does the expenditure org in the schedule lines screen always link to the assignment owning org?
No. An employee may have an assignment in one org, but the pay may be distributed completely or in part by a different org. The Organization Name in schedule lines refers to the organization that is incurring the expense. This entry determines where the charges will be reflected in the Discoverer financial reports.

Why can't I just change the expenditure type in the schedule line when the rest of the PTAEO is correct?
Once a payroll has processed against a schedule, the only change that can be made to that schedule is to move the end date to reflect the last day of the last payroll period processed OR extend the end date to a future end date (provided the current schedule end date has not yet processed).

What does it mean when I get the message "Award (task or project) is not valid for schedule line dates"?
The Integrated System requires an end date for the system, which is 31-Dec-4712. The system is searching to see if the accounts you entered end on 31-Dec-4712. If the account is not a grant, the end date for the account is most likely not 31-Dec-4712. (You get this message when you have not entered an end date for the schedule line) Simply select ok and save your work. If you get this message at any other time, you should check the start and end dates for the project, task, and award.

What does it mean when I enter a project in the schedule line, but cannot move to the next field?
A project number has been entered that is not in the database. The cursor will remain in this field until you enter a valid number.

What does it mean when I enter an award number and get the LOV with complete list of awards?
The award number is not in the database or not linked to the project selected.

What should I do when I have no more blank records to record PTAEOs?
Place your cursor in any record, and select the [+] icon on the toolbar. A blank record is displayed. Note: The IS will sort the records when you refresh display.

How do I find out who entered a schedule against my PTAEO?
Place your cursor in any one of the fields in the record. From the menu, select [Help], [Record History]. The IDs show the originator of the record and the last person who touched (saved a change) to the record.

How do I complete the GL field in LD?
Never enter any information in the GL field(s) in LD. Use the tab key to move to project.

How do I get out of the GL field if I have entered information in that field?
If you have entered text in the GL field, highlight the information and select the [X] from the toolbar; tab to the project field.

If you have entered information in the GL field and the Accounting flex field is presented, Select [Cancel], Select [OK] in the error screen, and delete the entry, using the [X] on the toolbar. Tab to the project field.

How do I change a schedule that has not yet processed?
If you do not want to use the schedule, select [X] from the toolbar to delete the record. Save the deletion. If you want to change and/or modify the schedule, make the changes and SAVE your work.

How do I know how an employee's pay is distributed if there is no labor schedule for the employee?
If there is an active Org Default Labor Schedule, the pay will be distributed from that schedule. If there is no Org Default Labor Schedule, the distribution is sent to suspense.

When I end dated the work study PTAEO using the work study end date, part of the pay went to a different PTAEO. Why?
If the end date of the work study program is not the end date of the pay period, the remaining days in the pay period are sent to suspense or the Org Default Labor Schedule if you have one. If you are not using the work study position at the end of the work study program, end the LD schedule with the end date of the pay period. The HRMS Specialist should terminate the assignment using the end date of the work study program.

What should I do if the work study program is ending, but we want to continue paying the employee for other work performed?
The HRMS Specialist must change the assignment. The LD schedule should be end dated for the last day of the work study position. A new schedule can then be entered for the remaining days of the pay period, or the schedule can revert to the Org Default Labor Schedule.

Can I enter a schedule using dates that are included in the active grant period but paid after the grant has ended?
Yes, provided the schedule end date is before the grant end date. There is a close date and an end date on every grant. The end date occurs first and charges can be applied to the grant if they are dated before the end date. If the grant has actually reached the closed date, then no charges can be placed against the grant.


Distribution Adjustments

What is a distribution adjustment?
A distribution adjustment is a process that allows an adjustment (change) to labor charges from an incorrect PTAEO combination(s) that posts the new labor charges to the correct PTAEO combination(s). A distribution adjustment is initiated for any changes to any payrolls that have been processed.

When does a distribution adjustment need to be entered?
When an employee is scheduled using the wrong PTAEO combination(s), a distribution adjustment must be submitted to correct the PTAEO combination(s) from which the employee’s pay is paid/funded. A distribution adjustment must be performed to remove all pay amounts charged to the Organization Suspense Account.


How do I know when I need to initiate an LD adjustment?
When a correction or change in any portion of the PTAEO that was charged for any payroll period that has processed, you must initiate a LD adjustment. Never attempt to create a Cost Transfer in GA to make these corrections.

The expenditure type on my financial reports is wrong. How to I make this change in LD?
If you are initiating an adjustment from the suspense account to the correct PTAEO, the expenditure type will self-correct when the adjustment processes. In all other case, the expenditure type is determined by the information in the HRMS assignment record.  The record must be corrected retroactive to the correct start date, and an LD adjustment initiated.  The expenditure type will self-correct in the adjustment, based on the new information in the HRMS assignment record. 

I initiated an LD adjustment, but it did not change the schedule line. Why?
An LD adjustment is a separate process. The schedule line will never change once any payroll has processed against that schedule. The adjustment will be reflected in grants and will be reflected in the financial and related LD reports in Discoverer, but it will not be reflected in the schedule lines or the labor schedule reports.

How do I view an LD adjustment that I have recently submitted?
Once an LD adjustment has been submitted, it is no longer available to view in LD. Distribution adjustments are posted nightly to grants accounting (funds management). If you need to find out immediately whether or not an adjustment processed, the next morning you may initiate another adjustment, using the same parameters and view in the Actual window the charges that currently reside in Grants Accounting. By clicking on the row indicator, you may view the composition of the line item by selecting [View Details]. An adjustment will clearly indicate “Adjustment” in the View Details window. If you can wait twenty-four hours after the adjustment processed, you can run the Discoverer report IS.LD_Adjustment Post-Audit.

I initiated an LD adjustment, but it is wrong. How do I correct the adjustment?
Once an LD adjustment has been submitted, it cannot be retrieved to view or correct. Distribution adjustments are posted nightly to grants (funds management). If the adjustment processed, it can be corrected the next day by initiating a new adjustment, using the same parameters. In the Actual Distributions region, you can [VIEW] the details of the PTAEO and it will reflect [Adjustment]. Proceed to initiate the adjustment using the same procedures for all other adjustments.

I initiated an LD adjustment, and the PTAEO change processed, but the fringe charges on one of the PTAEOs is wrong. How do I correct the fringe charge?
This problem indicates that the adjustment was initiated at the Assignment level when it should have been initiated at the Element level. Initiate a new adjustment for the PTAEO at the Element level. When the adjustment processes, the fringe rate will be correct.

How do I know whether an LD adjustment has processed?
The preferred method is to wait for the ODS refresh (next night following the IS process) and to run the IS.LD.Adjustment Post Audit report. If your adjustment shows in this report, it has processed. If your adjustment is not showing on this report, then the adjustment has failed.

Why would an LD adjustment not process?
The most common reasons are: The primary assignment is not active for the period adjusted; Transaction Controls have been placed on the grant restricting salary, wages, and etc.; Award has closed; Project is in workflow.

What can I do if I initially view the actual distribution lines using the Assignment level, and then discover that I must adjust at a different level?  Must I start completely over?
No. Place your cursor in the field Full Name, or Assignment Number, or Employee Number and select the [Flashlight]. This takes you back to the original initiate adjustment screen where you can make any changes necessary - including changing the Adjust By choice.

What should I do when my grant has ended, and even though the charge is allowed, the distribution adjustment will not let me charge the grant?
Contact OSP and request the end date for the grant be extended.   If the grant is closed, adjustments cannot be made.


Suspense Account

What is the purpose of the Organization Suspense Account?
The Organization Suspense Account is a clearing account for all distributions that have failed to process at the employee and/or organization level. This account must be monitored closely and all charges and/or credits must be moved by initiating an LD adjustment.

How can I find the Suspense PTAEO combination for my organization?
Run the Discoverer report IS.LD_Suspense Projects and Awards.

Why did my employee's distribution go to the Org Suspense Account?
No schedule at the employee level AND no Org Default Labor Schedule; the complete pay period has not been covered either at the employee level or in combination with the Org Default Labor Schedule level; schedule is less than 100%; project is in workflow, transaction controls has been applied, or the Sponsored Award Labor Encumbrance end date (AED) has expired. The project and award must be in an ‘approved” status when the payroll is processed.

Why does my employee show as classified, full-time when the employee is not classified?
All charges to the suspense account use the expenditure type of Salary, Class Staff FT and apply the highest fringe rate. When an adjustment is initiated, the expenditure type automatically credits and debits the PTAEOs using the correct expenditure type. (The fringe rate will automatically adjust to correspond to the appropriate rate, based on the People Group in HRMS.)

What is my suspense PTAEO?
Every organization has a unique project number used for LD suspense charges only. Run the Discoverer report IS.LD_Suspense Projects and Awards.

How can I determine what charges for my org have been sent to suspense?
One way to find charges to suspense is to routinely run the Discoverer report IS.LD.Pay and Distribution Adjustment History after the payroll has processed. Move the suspense project number to the first position in page items. View all charges and/or debits to the suspense project.  A way to view all suspense activity for your organization is to run the Discoverer report named IS LD Labor Suspense Detail.  This report contains information about suspense items that have been adjusted and those items that remain to be adjusted. 

Why do I show a credit to my suspense account?
When an individual is invoiced for an overpayment, and etc., the refunded amount  is credited to the organization's suspense account. An LD adjustment must be initiated to move the credit to the appropriate PTAEO.


Payroll Information

How do I find out how much faculty and staff in my department have been paid?
Run the Discoverer report named "LD Pay and Distribution Adjustment History."
• For information on each payroll, drag either the "Period Start Date" or the "Period End Date" into the "Page Items" area and select the period you wish to view.
• For information by organization, the initial window of the report allows you to enter an organization or part of an organization followed by the percent sign to view a specific organization and the pay.
• For information for the whole person, drag the "employee name" field into the "page items" area and select the person you wish to view. You will see all pay data for that employee.
• You can also use a combination of the above options or view information by any other field on the Discoverer report.

Where can payroll information be found in the IS?
The information can be found in Grants Accounting by viewing Project Status Inquiry (PSI). Unburdened payroll information can also be viewed in LD using the Oracle Discoverer reporting tool (Refer to FAQ – Discoverer Reports).

How can I view my employee’s pay from all pay sources for a period of time?
Run the Discoverer report IS.LD_Pay and Distribution Adjustment History, using the Employee tab.


Discoverer Reports

When I view my Suspense charges, all of my employees (faculty, staff, and students) are shown as Classified, Staff, FT, when in fact they are not? Why did this happen, and how can it be corrected?
Any time a charge is sent to Suspense, the expenditure type is always designated as Salary, Classified Staff, Full-Time, and the fringe rate  is  applied at the Classified Full-time fringe rate. Initiate a Labor Distribution Adjustment. When the adjustment is processed the correct fringe rate is applied.

The IS.FM_Expenditure Detail by Project report reflects the correct PTAEO, but the employee expenditure type is different from the expenditure type shown in the LD schedule line. Why did this happen, and how do I correct it?
The expenditure type in the report is different because the IS has corrected the expenditure type to reflect the information contained in the HRMS assignment record. The expenditure type is determined by the information entered in the  HRMS assignment record. If there is a conflict between the HRMS record and the schedule line expenditure type in LD, the HRMS record (Auto-pop) prevails. To correct, check the HRMS record. If  any of the information is incorrect, the record must be corrected by the HRMS Specialist. After the HRMS record update has been processed, a labor distribution adjustment may be initiated.

The IS.FM_Expenditure Detail by Project report reflects the correct expenditure type for my employee, but the labor schedule did not change. What should I do?
If you enter an incorrect expenditure type, the IS corrects the expenditure type when the payroll is processed, based on the  information entered in the HRMS assignment record. However, this correction is shown on all of the IS reports, but does not change the schedule that was processed. End date the schedule, and set up a new schedule for the current pay period, using the correct expenditure type.

The IS.FM_Expenditure Detail by Project report reflects the student as non-student, with fringes applied. What should I do?
The HRMS Assignment record needs to be corrected. Once the correction has processed, initiate an LD Distribution Adjustment.  The expenditure type will self-correct when the adjustment is processed.

The IS.FM_Expenditure Detail by Project report does not reflect the PTAEO encumbrance changes I have entered in LD.
Encumbrances are up-dated after  each payroll has processed for the month. Any changes that are made to the schedules will be reflected in the encumbrances at that time.

I ran the IS.FM_Expenditure Detail by Project report, and it does not reflect my employee's complete pay. Why not?
The report parameter asks for the Project Carrying Out Org. The project carrying out org is not always the incurred by (expenditure) org. You should run this report using the [By Employee] tab to capture all expenditure orgs and the related charges.


Encumbrances

What are encumbrances, and what employee types are encumbered?
Encumbrances are estimates only for anticipated future payroll amounts, but may not represent the actual payroll amount that will ultimately be charged. Encumbrances are created for all salaried and goal paid employee types, based on the amount of regular salary in the HRMS Salary Administration record. The Discoverer financial reports show labor encumbrances in the “Commitment” column. Encumbrances are updated after each payroll has been processed.

How are encumbrances created?
The Integrated System creates encumbrances by searching Labor Schedules in the Labor Distribution module for a valid schedule for each employee through the minimum global default end date. It searches for schedules at the lowest level of detail in the employee labor schedule hierarchy and moves upward until a complete schedule has been identified for the encumbrance period(s). If a complete schedule is not found either at the employee level or at the Organization Default Labor Schedule level (ODLS) or combination thereof, the encumbrance will be applied to the Organization Suspense Account (OSA). Also, if there are any end dates that invalidate the schedule, this will create an encumbrance at the Suspense Account level.

What is the minimum encumbrance end date used for the fiscal year?
All salaries will be encumbered using the minimum date of 24-May-XXXX <current fiscal year>
All non-sponsored awards (those that do not start with a “G” or "Z") will have encumbrances generated to the last pay period in the fiscal year based on the payroll type.

For semi-monthly employees, encumbrances will be generated out to 09-Jun-XXXX. For biweekly paid goal payments, encumbrances will be created until the last day of the last bi-weekly payroll period that is paid in the month of June.

How are encumbrances calculated for faculty < 12 months?
Encumbrances are generated just for the months paid at a rate of 1/9 (or # of work months) of annual salary.

How are encumbrances calculated for goal pays (GTA, GRA, and Faculty Wage)?
The goal pay encumbrance amounts will be calculated using the total pay amount divided by the number of payments indicated in the employee HRMS assignment record.

How are encumbrances created with the correct expenditure type?
Encumbrances are created using the same auto-pop logic as payroll. It determines the correct expenditure type (if the labor schedule and employee attributes do not match), according to the HRMS assignment record. If the expenditure type in the employee labor schedule is incompatible with the information entered on the employee assignment, the labor encumbrance process will correct the expenditure type automatically, based on the employee HRMS assignment data. Also, if the labor is encumbered on the Org Default Labor Schedule, encumbrances will be generated using the correct expenditure type based on each individual employee's HRMS assignment data, regardless of the selection made in the Org Default schedule line. Note: encumbrances that are generated using the suspense account will continue to use the “Salary, Class Staff FT” expenditure type like payroll.

What is the encumbrance end date for non-sponsored awards?
Encumbrances are created thru the last pay period of the current fiscal year based on the type of payroll: 24-May-XXXX for the monthly payroll, 9-June-XXXX for the semi-monthly payroll, and the last biweekly payroll paid in June XXXX.

How do Sponsored Program (OSP) award (G or Z) encumbrances work?
A new field named Labor Enc End Date (LEED) has been added to the Award descriptive flex field in Grants Accounting on sponsored program awards so that the OSP Award Manager can enter an end date for labor encumbrances that coincides with the end date of the sponsor’s current funding period. This date may be earlier or later than the University’s monthly payroll fiscal year end of 24-May-XXXX, which is used as the global default encumbrance end date.
Sponsors generally only fund for a portion of the total time the award is granted. For instance, on an award that is granted from 30-Sep-04 to 31-Oct-08, the sponsor may choose to fund the award only for one fiscal year at a time. Therefore, the funding and subsequent budget that is loaded is only sufficient for expenses occurring up to 31-Oct-07. The OSP Award Manager can enter a Sponsored Award Labor Encumbrance End Date using the date: 31-Oct-07. This functionality allows for more accurate reporting, since it allows labor encumbrances to match up with the current budget loaded, rather than encumbering through the University’s current fiscal year.
Sponsored Program awards are encumbered to the earliest date of the Labor Schedule (LS), any segment of the PTAEO (PED), or the Award field (named Labor Enc. End Date [LEED]), but not less than the Global Default Encumbrance End Date (DED).

What are the dates that affect the encumbrance process?
Actually, It’s all about the dates!!!!
Labor Encumbrances will be generated to the earliest end date of:

  • The Labor Schedule (LS), OR
  • Any segment of the PTAEO (PED)
    • Project End Date
    • Task End Date
    • Award End Date, OR
  • Sponsored Award Labor Enc End Date (LEED)
  • BUT not less than the Global Default encumbrance end date (DED)

When viewing labor encumbrances, you must understand the dates that affect the encumbrance process. If the encumbrances generated are not what you expected, you’ll need to take a look at the various end dates that affect this process.

Assuming that an employee is active and their assignment is not end-dated, labor encumbrances will be generated to the earliest of any of these dates:
The labor schedule, any segment of the PTAEO, through the end of our fiscal year for non-sponsored awards, or the new Sponsored Award labor encumbrance end date, BUT not less that the Global Default Encumbrance End date (DED).
The Global Default Encumbrance Date (DED) will still be set to equal the last monthly payroll processed in the current the fiscal year (24-May-XXXX). This date is used in situations where a labor schedule, or a segment of the PTAEO, ends before the Global Default Encumbrance End Date and the employee has active assignments that are equal to or greater than the default encumbrance end-date. Since these employees have active assignments, their labor will be encumbered on the Organization Default Labor Schedule (ODLS, (if one exists)) or the Organization Suspense Account (OSA) thru the end of the Global Encumbrance Date (DED). This provides a complete picture of the labor anticipated to be paid within the current fiscal year, although it has not been fully scheduled.

The Global Default Encumbrance End Date (DED) is set to 24-May-XXXX for all employees. However, semi-monthly employees will use an encumbrance end date of 09-Jun-XXXX. If the semi-monthly employee’s labor schedule ends prior to the 09-Jun-XXXX, encumbrances will be created using the Organizational Default Labor Schedule (ODLS, (if one exists)) or the Organization Suspense Account (OSA) until 09-Jun-XXXX.

Example 1: 12-month faculty member, paid on a non-Sponsored Program award. (Employee & Assignment active thru 24-May-2007)
LD schedule line end date: 30-Apr-2007; Global Default end date (DED): 24-May-2007; Any segment of the PTA end date (project end, task end, award end) (PED): 31-Jan-2008

In this non-sponsored program award example, if there is a valid Org Default Labor Schedule (ODLS), the encumbrance combination will be:
LD + ODLS
(LD thru 30-Apr-07 + ODLS 01-May-07 thru 24-May-07)

If the Integrated System cannot find a valid schedule that covers the periods of time through the DED, the encumbrance will be shown on the Organization Suspense Account (OSA).

In this example, if there is not a valid Org Default Labor Schedule (ODLS), the encumbrance combination will be:
LD+OSA
(LD thru 30-Apr-07 + OSA 01-May-07 thru 24-May-07)

Example 2: 12-month faculty member, paid on a Sponsored Program award (Employee & Assignment active thru 24-May-2007)
LD schedule line end date: 30-Apr-2007; LEED: 31-Mar-2007; DED: 24-May-2007; PED PTAEO end date: 31-Jan-2008;

In this example, the LD schedule is set up with an end date of 30-Apr-07 BUT the Award Enc End Date (LEED) is earlier (31-Mar-07). IF the Organization has a valid Organization Default Labor Schedule (ODLS), the encumbrance combination will be:
LD+OSA+ODLS
(LD thru 31-Mar-2007 + OSA 01-Apr-2007 thru 30-Apr-2007 + ODLS 01-May-07 thru 24-May-07)

(The schedule entered in LD encumbers through 31-Mar-2007 because the Sponsored Award Labor Encumbrance End Date (LEED) date is the earliest end date. The Org Suspense Account (OSA) will be encumbered 01-Apr-2007 thru 30-Apr-2007 since the PTAEO (due to the LEED date) is invalid for the period of time specified in the schedule. The remaining encumbrance 01-May-2007 – 24-May-2007 (out to the minimum of the Global Default end date (DED) is applied to the Org Default Labor Schedule (ODLS.)

What reporting tools are available to view the end dates that affect the PTAEO?
There are two Discoverer reports that show you the end dates (including the Sponsored Award Labor Encumbrance end date LEED) that affect the pay distribution and encumbrances:

  • A new tab has been added to the IS.LD.Labor_Schedule_Hierarchy report. The new tab is named: Labor Schedules w/end dates (Tab 2). This tab shows all of the end dates applicable to the employee’s schedule for pay and encumbrances.
  • IS.FM.Award_Common_Attributes report contains a new item that gives you the OSP Labor Enc End Date for Sponsored awards.

  Page Updated: Thursday 2016-09-08 16:42:26 EDT