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Organization Suspense Account Clearing Process (PowerPoint)

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					    Clearing Your
Organization Suspense
   Account (OSA)




            June 27, 2006   1
Expectations
     Purpose
         Review Organization Suspense Account Year End Highlights
         Prevent future postings
         Pertinent OSA Information (Job Aides)
         Frequently Asked Questions
         Provide you with the necessary tools and information to complete the process

     Out of Scope
         Requests for:
             System Improvements
             FY05 Balances Information
                These were cleared 2/06. Questions should be emailed to the LD
                 Coordinator(LD_Coordinator1@lists.Stanford.edu)

     Assumes working knowledge/training in:
        Oracle Labor Distribution
             Labor Schedules
             Organization Suspense Accounts
             Distribution Adjustments
             Appropriate Authority per Department Org


                                        June 27, 2006                                    2
Topics of Discussion
   Year End Close FY06 Highlights
   Pertinent OSA Information
   Identify and Prevent Future Postings
   Frequently Asked Questions

   APPENDIX 1 – Process Steps
   APPENDIX 2

                    June 27, 2006          3
FY 06 Year End Close
     Information




           June 27, 2006   4
FY 06 Year End Close Information
     Departments will be required to clear OSA balances:

         For 01-SEP-05 thru 31-JUL-06 pay periods by 8/23/06
         For 01-AUG-06 thru 31-AUG-06 pay periods by 9/6/06

     All unapproved distribution adjustments will be rejected on:
         08/25/06 for 01-SEP-05 thru 31-JUL-06 pay periods
         09/09/05 for 01-AUG-06 thru 31-AUG-06 pay periods

     All rejected OSA transactions along with any other remaining
      transactions will be transferred to an Operating Budget PTA
      that each department will designate

     A calendar with all Year End Close critical dates, including
      OSA deadlines, will be available in July on CO website
      http://co.stanford.edu/index.shtml

                                           June 27, 2006             5
 FY 06 Year End Close Information
(continued)
    Budget Officers will receive OSA balances on a weekly basis
     beginning July

    System controls will again be put in place to prevent users
     from entering distribution adjustments on OSAs. These will
     be in effect on:

        08/23/06 for 01-SEP-05 thru 31-JUL-06 pay periods
        09/06/06 for 01-AUG-06 thru 31-AUG-06 pay periods


    Salary Distribution Adjustments functionality for OSA
     transactions will be “reactivated” on 9/20/06 (after the central
     clearing adjustment has been entered)

                                      June 27, 2006                     6
Pertinent OSA
 Information




        June 27, 2006   7
Pertinent OSA Information
   An Organization Suspense Account is a PTA that is assigned to
    every Organization to hold payroll transactions that were rejected
    by the system
   Each department (employee Org) is mapped to a single OSA (i.e.
    you cannot have different employees within an Org mapped to
    different OSA’s)
   Departments determined which OSA was assigned
   All transactions in the OSA are posted to the 51610 expenditure
    type and are burdened at the highest burden rate
   An employee’s suspense earnings are charged to the Org
    Suspense Acct associated with the department Org on the
    employee record in PeopleSoft




                                June 27, 2006                            8
    Pertinent OSA Information
    (continued)
Job Aids
   Who Can Create a Labor Distribution Adjustment
       Instructions to find appropriate LD Adjuster in Authority Manager
        who has the ability to enter distribution adjustments for the
        employee’s department Org

   FY06 Macro to format
    FIN_EXP_104_Detail_Transactions_Rpt
       Used to sort and subtotal by employee

   Job Aids and Macro can be found on the Oracle website at:
       http://www.stanford.edu/services/oracle/labordist/training.html




                                       June 27, 2006                        9
Pertinent Information(continued)
 Resource Websites
    HelpSU
      http://helpsu.stanford.edu


    Job Aids can be found at:
        http://www.stanford.edu/dept/itss/finsys/learningcenter/resources_jobaid
         s.html

    Sign up for distribution lists -
        See: http://www.stanford.edu/services/oracle/learningcenter/
            LD-Adjusters
            Labor-Schedulers

    Info regarding Expenditure Statements (including salary)
        Found by typing “Expenditure” in your browser
            Be sure to check out the document “Salary and Vacation Accrual
             Examples” found under the “Expenditure & Revenue Detail
             Report” “Supporting Materials” tab
                                        June 27, 2006                           10
  Pertinent Information (continued)
Reports
The following Reportmart3 reports will assist in determining/performing correcting entries
     – use these reports as needed

        FIN_EXP_104_Detail_Transactions_Report
             Should be run after receiving e-mail from LD-Coordinator (Andy Zell)
             Displays OSA PTA totals and highlights payroll earnings that need to be addressed
             Use FY06 macro to modify report to sort and subtotal by employee
                   Macro: https://docushare.stanford.edu/Get/File-40866/FY06_Macro.xls
                   Instructions : https://docushare.stanford.edu/Get/File-33064/Inst_Macro_OSR_Rpt.doc


        FIN_LABOR 173 Suspense Account Report
             Includes reason codes explaining why payroll earnings hit the Suspense Account
             Displays SOV and VCR earnings that total $0 and need to be transferred out

        FIN_LABOR 167 Earnings Dist Plan
             Displays how earnings should have been distributed (salaried employees)
             Same information as Labor Schedule for referenced pay periods and zoom function in LD Adjustments

        FIN_LABOR_168_Earn_Dist_Assig_Org
             Displays how payroll transactions were distributed for all employees (does not include Distribution Adjustments)
             Search prompt by department Org only

        FIN_LABOR 169 Earning Dist Emp
             Displays how payroll transactions were distributed for all employees (does not include Distribution Adjustments)
             Search prompt by Employee Name only

        FIN_LABOR 170 Earning Dist PTA
             Displays how payroll transactions were distributed for all employees (does not include Distribution Adjustments)
             Search prompt by Employee Name, Employee Number, or PTA


        FIN_LABOR 247 Distrib Adj Detail
             Provides summary and detail information of LD Adjs that have been processed.



                                                                          June 27, 2006                                          11
Prevent Future Postings
        to OSA




             June 27, 2006   12
    Prevent Future Postings
Prevent future postings to OSA’s
   Review reason codes on the FIN_LABOR_173 Suspense Account
    Report to determine why employee earnings posted to Suspense

   If necessary, modify:
         Employee’s labor schedule
         GFS or PeopleSoft record
         KRONOS record (update PTA information)
           If duplicate PTAs appear in an employee’s KRONOS
            timecard, be sure to select the PTA with the most recent
            date

   Ensure that the PTA on paper timesheets are legible and that the
    timesheet contains the employee’s assignment number
                                 June 27, 2006                         13
    Prevent Future Postings
Determine what PTA’s should have been charged
   Utilize the Zoom Function in Distribution Adjustments




                                June 27, 2006               14
Prevent Future Postings
Utilize the Zoom Function in Distribution Adjustments




                            June 27, 2006               15
Frequently Asked
   Questions




         June 27, 2006   16
Frequently Asked Questions

   Why do charges post to OSA?
   Why do PTA’s become invalid?
   How do I find out who has Authority to enter a distribution adjustment for an
    employee?
   Why do some employees have a 31-AUG-06 end date on their Labor
    Schedule?
   Why is it required to populate the end-date on all Labor Schedule lines?
   Why are Org Suspense Accounts (PTAs) in KRONOS if they are not
    suppose to be used?
   What is the last day I can update a Labor Schedule for an employee for the
    current pay period?
   How can I identify the status of a Distribution Adjustment?
   Do the SOV and VCR Vacation Entries need to be moved?
   A large amount of transactions which had valid PTA’s
    posted to my Org Suspense Account during the
    30-SEP-05 pay period, why did this happen?


                                     June 27, 2006                              17
Frequently Asked Questions (continued)
Why do charges post to the OSA?


   A Labor Schedule does not exist for an employee
    that should have one (excludes GFS and those submitting
    timesheets)
   Labor Schedule lines total less than 100% (remaining
    earnings hit suspense)
   PTA assigned in KRONOS is not on the employee’s
    Labor Schedule in Oracle
   PTA listed on Labor Schedule was not valid when
    payroll was run
   PTA assigned in KRONOS/Payroll/GFS was not
    valid

                             June 27, 2006                    18
Frequently Asked Questions (continued)
Why do PTA’s become invalid?
   Changes made to PTA setup after the transaction was entered but prior to approval
    may cause the PTA to become invalid and the transaction to be rejected

   These changes may include:
       Close Date
           Last date Award will accept transactions (regardless of expenditure item date)
            The Close Date is the last date the system will allow an expense to be entered (and approved) on the
            PTA
       End Date
           The last expenditure item date the system will allow an expense to be entered on the PTA

        Scenario: An Award has an End Date of 31-DEC-05 and a Close Date of 31-MAR-06

        Example:
           A distribution adjustment is entered and approved on 01-MAR-06 for payroll earnings reflecting the 15-
           DEC-05 (the expenditure item date) pay period. The adjustment will be processed and posted because
           the adjustment was entered before the close date (31-MAR-06) and the date the expense was incurred
           (15-DEC-05) was before the End Date

       Changes on the P, T and/or A status
          If the status is At Risk, On Hold, or Closed, then charges cannot be posted

       Installment Not Activated
           Central office has not enabled Award to receive expenses


                                                   June 27, 2006                                                    19
    Frequently Asked Questions (continued)

    How do I find out who has Authority to enter a
    Distribution Adjustment for an employee?
    Access to Oracle’s Labor Distribution module is granted based on
     the Org that “owns” the employee’s assignment
    Many reports, including the FIN_104 Expenditure Item Detail Report
     and the Labor_173_Suspense_Account provide the employees Org
     so you can readily identify it
    The employee’s department Org is displayed after their name on
     most expenditure reports
    To determine who can create a Labor Distribution Adjustment for the
     employee access Authority Manager and review Authority based on
     the employee’s Org

     See Job Aid for detailed instructions (including screen shots):
     https://docushare.stanford.edu/Get/File-36514/find_LD_Adjuster.doc

                                  June 27, 2006                            20
Frequently Asked Questions (continued)

Why do some employees have a 31-AUG-06 End
Date on their Labor Schedule line(s)?
   End Dates on Labor Schedule lines for employees funded by
    non-sponsored projects – and where the end date is not
    populated with a prior date – are automatically populated with the
    end date of the current fiscal year
   End Dates on Labor Schedule lines will be used to create Salary
    Encumbrances (Commitments) and therefore must be populated
   If the End Date field is not populated Salary Encumbrances
    processes will not complete in a timely manner
   Student in Labor Schedule classes are instructed to input the last
    day of the fiscal year (31-AUG-200X) and central office is
    responsible for rolling dates forward (for non-sponsored PTAs)



                                June 27, 2006                        21
    Frequently Asked Questions (continued)

    Why are Org Suspense Accounts available in
    KRONOS if they are not suppose to be used?
 An interface is run daily from Oracle Financials to
  KRONOS to update PTA listings; OSA’s are included in
  the interface because they are active PTAs
 Organization Suspense Accounts should not be used for
  payroll charges because these are not (funded) accounts
What is the last day I can update a Labor Schedule
for an employee for the current pay period?
       Hourly Employees (those paid through KRONOS):
           One day before the last day of the pay period
       Salaried Employees:
           3 days after the last day of the pay period

                                       June 27, 2006        22
    Frequently Asked Questions
    (continued)
Identifying Distribution Adjustments in Process

   Run FIN_LABOR_247_Distrib_Adj_Detail report to
    identify all labor distribution adjustments that have not
    been approved (in process)
     Enter “In Process” in the Adjustment status field to limit
       your search to return only those adjustments that have
       not been approved

   Contact the Approver to complete transaction process
    (i.e. Approve or Reject the transaction)

                               June 27, 2006                       23
Frequently Asked Questions (continued)

Do the SOV and VCR Vacation Entries
need to be moved?
   All transactions must be moved from the OSA, including offsetting
    Salary on Vacation (SOV) and Vacation Credit (VCR) entries
       SOV is the Salary an employee received while on Vacation
       VCR is the credit received from the central account for the employee's Vacation
        used
       Although VCR and SOV are offsetting entries:
           Moving the entries ensures the total pay an employee received is accurately reflected on
            the appropriate PTA(s).
           Allows the user to see the total effect of the vacation accrual policy on an account. (See
            http://www.stanford.edu/dept/DoR/Resources/vac.html)

   Why does my OSA have a negative balance?
       Most likely can be attributed to Vacation Credit (VCR) entries that were not
        transferred along with the corresponding Salary On Vacation entries (SOV.)
        Important Note: this means that the account the SOV was moved to was
        overcharged (to correct this, an adjustment must be entered for the VCR
        earnings)

                                               June 27, 2006                                             24
Frequently Asked Questions A large amount of transactions
which had valid PTA’s posted to my Org Suspense Account
during the 30-SEP-05 pay period, why did this happen?

    A central error in September caused a high percentage of 9/30/05 earnings to be erroneously
     charged to Org Suspense Accounts
        Erroneous charges display a reason code of PA_EXP_ORG_NOT_ACTIVE in Labor 173 Report

    The erroneous charges were corrected centrally in Oct-2005
        The correction posted to the Oct-15-2005 payroll period on Labor Reports
        The correction appears with an expenditure item date of 01-Oct-2005 on Expenditure reports (see
         http://ora.stanford.edu/expenditure/supporting_files/issues_cum.xls for more details)

         Additional detail
            All Pre-Generated earnings (transactions assigned PTAs – charging instructions – via other systems
             (PeopleSoft, KRONOS, GFS) processed for the September 30th payroll posted to Org Suspense Accounts.
            The reason code in the Labor_173 report describes these 30-SEP-05 earnings as
             “PA_EXP_ORG_NOT_ACTIVE”.
            Central Office processed a second payroll to reverse the September 30th payroll earnings. The reversal
             payroll has an 01-OCT-05 expenditure item date. The reason code in the Labor_173 report describes these
             earnings as “PA_EXP_ORG_NOT_ACTIVE”.
            The September 30th correction payroll (third payroll) processed the Pre-Generated earnings normally to the
             appropriate accounts. The correction payroll also has an 01-OCT-05 expenditure item date.

    The Exp_104 report with the FY06 OSA Macro should be run to review balances by employee
     number (not assignment) for earnings related to the 9/30/05 payroll



                                                       June 27, 2006                                                 25
    Report Examples- 9/30/05 Posting Error
   The erroneous charge and correction appear as follows on the #173
    Suspense report :




   The erroneous charge and correction appear as follows on the #104
    Expenditure detail report :




     Note: The date of the correcting entry is 10/15/05 on the #173 report and 10/01/05 on the
     #104 report.
                                             June 27, 2006                                       26
APPENDIX 1

Process Steps
Clearing OSA Balances



            June 27, 2006   27
    Clearing OSA Process Steps
   Step 1: Identify outstanding balances in the OSA

   Step 2: Determine what PTA’s should have been
    charged

   Step 3: Determine appropriate PTA(s) and enter
    a Distribution Adjustment


                        June 27, 2006            28
Process : Step 1
Identify outstanding balances in the OSA

   Run the Exp_104_Detail_Transactions report year to date with the
 FY06 OSA Macro in ReportMart3**
        This report reflects the actual balance in the account by PTA
        Includes payroll transactions and distribution adjustments across multiple months
        Is refreshed nightly
        Includes both 51610 and non-51610* expenditure type transactions posted to the OSA

   Use this report to:
        Identify dollar amounts to be adjusted
        Identify employee balances that are not $0

   Run the FIN_LABOR_173 Suspense Account in Reportmart3**:
        Shows the reasons why transactions were charged to the OSA
        Available “real time” – once transaction is Approved
        Provides detailed transactions across multiple months
        Includes 51610 expenditure type transactions only

   Use this report to:
        Identify if any edits are required to correct an employee’s Labor Schedule
        Review transactions where employee balances are $0, to determine if correcting entries for VCR/SOV are
         necessary

    * These are transactions that were adjusted to the OSA using an incorrect expenditure type. All transactions posted to
        OSAs should have the 51610 expenditure type. However, in some cases departmental users entered adjustments
        using a non-51610 expenditure type

    ** The 173 and 104 reports balances will not match if non-51610 expenditure type transactions have been posted to the
         OSA.
                                                      June 27, 2006                                                  29
Process : Step 2
Determine what PTA’s should have been charged

   Run the Labor Earnings Distribution Planning report (#167) year to
    date in ReportMart3:
       “What was supposed to happen” (for salaried employees)
       Includes Labor Schedule and Salary information

   Run the Labor Payroll Earnings Distribution Emp report (#169) year to
    date in ReportMart3:
       “What really happened” (for all employees)
       Shows actual payroll distribution (including amounts that were charged to an
        OSA)
       Includes original transactions only (source=LDACT); does not include
        distribution adjustments

   Compare the reports above to determine which PTA failed (was not
    charged)


                                       June 27, 2006                              30
    Process : Step 2 (Alternative)
Determine what PTA’s should have been charged
   Utilize the Zoom Function in Distribution Adjustments




                                June 27, 2006               31
    Process : Step 2 (Alternative Continued)
Determine what PTA’s should have been charged
   Utilize the Zoom Function in Distribution Adjustments




                                 June 27, 2006              32
Process : Step 3

Determine appropriate PTA(s) and enter a
  Distribution Adjustment

   If necessary, contact others (i.e. Manager, PI) to
    determine what PTA the charges should be moved to

   Use the Element Level (this level will automatically
    populate the expenditure type field for you)

   The associated burdening will automatically be
    moved when the earnings are moved.
       Expenditure Type Definitions can be found on the below link:
        https://docushare.stanford.edu/Get/File-33132/Exp_Types_Def_Rules.xls



                                        June 27, 2006                           33
APPENDIX 2




      June 27, 2006   34
Supplemental Information



KRONOS Enhancement for Rejected Hours

 Preventing entries from being charged to the wrong
 Organization Suspense Account
     The system will first look for a match at the Org level, to
      determine the job where the hours should be allocated
     The system will then look for a match within that job at the
      PTA level; if one is not found, it will route the hours to the Org
      Suspense Account

  Important Note: If the system cannot find a match at the Org level, it will still charge the
     hours to the employee’s lowest job – it has no other way of knowing which job the
     hours belong to




                                           June 27, 2006                                     35

				
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