Procedure PR Labor Distribution

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					 Procedure 1315 PR.01
 Labor Distribution
 Revision Date: 4/22/08

  1 – Introduction.................................................................................................................................................................................1
     Role of Labor Distribution ..............................................................................................................................................................1
     Labor Distribution Separated From Payroll ....................................................................................................................................2
     Payroll Distribution Types ..............................................................................................................................................................2
     Costs Not Processed By LD ..........................................................................................................................................................2
     LD Timing .......................................................................................................................................................................................3
     Distribution Adjustments ................................................................................................................................................................3
     Roles and Responsibilities .............................................................................................................................................................3
  2 – Organization Default Account and Organization Default Labor Schedule ...........................................................................4
     Organization Default Account ........................................................................................................................................................4
     Organization Default Labor Schedule ............................................................................................................................................4
  3 – Suspense Accounts ...................................................................................................................................................................5
     Organization Suspense Account ....................................................................................................................................................5
     Prevent Future Suspense Entries ..................................................................................................................................................5
     Institutional Suspense Account ......................................................................................................................................................6
  4 – Auto-population of Expenditure Type ......................................................................................................................................6
     Purpose ..........................................................................................................................................................................................6
     Auto-correction Process .................................................................................................................................................................6
  5 – Scheduling Labor .......................................................................................................................................................................7
     When an Individual Labor Schedule is Needed .............................................................................................................................7
     What the Labor Schedule Does .....................................................................................................................................................7
     Prerequisites for Scheduling Labor ................................................................................................................................................7
     Scheduling Levels ..........................................................................................................................................................................7
     Distribution Hierarchy .....................................................................................................................................................................8
     Start and End Date ........................................................................................................................................................................9
     Percentages ...................................................................................................................................................................................9
     Preventive Maintenance ................................................................................................................................................................9
  6 –Preventing and Correcting Errors ...........................................................................................................................................10
     Review Funding, Organizational, and Personnel Events .............................................................................................................10
     Labor Costs Involving Sponsored Awards ...................................................................................................................................11
     Correct Distribution Errors ...........................................................................................................................................................11
  7 – Labor Accruals .........................................................................................................................................................................11
     Purpose ........................................................................................................................................................................................11
     How Labor Accruals are Processed.............................................................................................................................................12
     Reversal of Accruals ....................................................................................................................................................................12
  8 – Charges Originating in GSPS ..................................................................................................................................................12
     Overview ......................................................................................................................................................................................12
     Determine Error Source for Payments to Graduate Students ......................................................................................................12
     Clearing GSPS Suspense Charges .............................................................................................................................................13
  9 – Reports ......................................................................................................................................................................................14
     Labor Schedule Reports: .............................................................................................................................................................14
     Distribution History by Org ...........................................................................................................................................................15


1 – Introduction

Role of Labor Distribution
Labor Distribution (LD) is an Oracle application that performs the following functions:
     collects charging instructions for employee earnings
     distributes payroll costs to the appropriate accounts
     distributes accruals for biweekly employees
     processes all labor distribution adjustments for employee earnings dated July 1, 1999, and after
     provides data for effort reports.
After each payroll is processed, matched payroll costs and charging instructions are fed from LD to the
General Ledger (GL). GL applies fringe benefit assessments and indirect cost burdens to the labor
charges and credits.
                                                                                   1315 PR.01 Labor Distribution
A staff member in the General Accounting Department known as the central LD administrator is
responsible for managing the LD application. The central LD administrator can be contacted by e-mail at:
ga.ld@yale.edu.

Labor Distribution Separated From Payroll
Distribution of labor costs does not affect the generation of paychecks.
Payroll is processed and paychecks produced for all active employees in the appropriate cycle based on
current assignment and wage or salary data in the Human Resources/Payroll system, regardless of the
distribution of the payroll costs. LD distributes labor costs after payrolls are processed.

Payroll Distribution Types
There are three types of LD payroll distributions:


 Payroll             Payroll categories and LD process
 distribution
 type
 Oracle HR           C&T, M&P and faculty employees:
                         The central LD administrator sets up an organization default labor schedule in
                         LD – see Section 2 for details.
                         Individual employee labor schedules, if different from the organization default
                         labor schedule, are entered by departments in LD prior to payroll processing.
                         LD validates PTAEO segments at the time of scheduling.
                         After a payroll is run, LD imports the payroll transactions.
                         Pay records are matched with labor schedules by time period, earnings element,
                         and employee, and distributions are created.
                         Data is summarized and fed to GL.
 Pre-generated       S&M, casual, student hourly employees, and graduate students paid via GSPS and
                     Non GSPS graduate students:
                         The central LD administrator sets up an organization default account in LD – see
                         Section 2 for details.
                         Charging is assigned outside of LD via timekeeping systems or GSPS.
                            Timekeeping systems obtain the organization default account for each
                            employee from LD. Departments can enter different charging instructions
                            during time entry if needed.
                         After a payroll is run, payroll records and charging are fed into LD as pre-
                         generated distributions.
                         LD validates PTAEO segments, summarizes the data, and feeds to GL.
                     For non-GSPS professional school students, charging instructions are maintained by
                     the Payroll Department.
 Non-Oracle          Accruals for biweekly employees:
                         Accruals are calculated and fed to LD where they are distributed based on labor
                         schedules.
                     See Section 7 for details.


Costs Not Processed By LD
The following costs are not processed by LD:
    retirement benefits from pension payroll
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    confidential payroll
    employee deductions
    centrally funded employer fringe benefit expenses
    employer tax costs
    employer liabilities

LD Timing
Labor distribution is processed soon after every payroll run. See the payroll schedule for specific dates.
    This timetable is important to keep in mind when entering or modifying labor schedules. When you
    enter a labor schedule line, you cannot enter a start date for which payroll has already run. See
    Section 5, Start and End Date, for more information.
The Data Warehouse is refreshed in conjunction with the General Ledger.

Distribution Adjustments
Department business offices enter distribution adjustments in LD to transfer labor costs when necessary.
    Exception: Adjustments for graduate students paid via GSPS are usually entered in GSPS. See
    Section 8 for more information.
Distribution adjustments are made to labor costs incurred for individual employee assignments within a
specified time period, for a specific earnings element (e.g., regular wages, overtime, faculty summer
compensation, etc.)
A designated approver in the department must approve all distribution adjustments before they can be
processed. Approved adjustments are fed to LD and summarized and transferred to the General Ledger
each weekday afternoon. Fringes and overheads are adjusted automatically in GL.
The Office of Grant and Contract Financial Administration monitors distribution adjustments involving
sponsored awards.

Roles and Responsibilities
The labor distribution process involves the following roles and responsibilities


 Role                Responsibilities
 Department                enters individual charging instructions via LD labor schedules for C&T, M&P
 business                  and faculty employee earnings.
 manager or                enters charging instructions via weekly time entry for casual and student hourly
 designee                  employee earnings.
                             optionally, may schedule labor at the assignment level for some casuals and
                             students, if desired.
                           monitors and maintains labor schedules based on budgetary and funding
                           source requirements and personnel events.
                           enters distribution adjustments to clear suspense accounts or redistribute costs
                           as appropriate.
                           reviews and certifies effort reports, enters and approves distribution
                           adjustments if needed, obtains approval from department administrator or
                           principal investigator, as appropriate.
                           requests change in organization default account and/or organization default
                           labor schedule, if needed.




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 Central LD             establishes organization default accounts and organization default labor
 administrator          schedules, in consultation with department business managers.
                        establishes organization suspense accounts.
                        imports payroll data, creates labor cost distributions, feeds summary data to
                        GL.
                        processes accruals and reversals for biweekly payrolls.
                        monitors suspense accounts to ensure timely clearing; works with department
                        business managers to correct errors and redistribute charges.
 Grants &               monitors distribution adjustments involving sponsored awards.
 Contracts              produces effort reports, notifies department business managers when reports
 administrator          are available and ensures timely completion.
 General                establishes and maintains valid organizations, projects, tasks, awards, and
 Accounting staff,      expenditure types in Oracle Grants Management (OGM). (See Chart of
 Medical School         Accounts Handbook and project & award procedures.)
 Accounting             calculates accruals for weekly payrolls and submits via Journal Staging Area;
 Manager,               reverses accruals after payrolls run.
 central Grants &
 Contracts
 administrator



2 – Organization Default Account and Organization Default Labor
Schedule

Organization Default Account
The organization default account serves as the default PTAEO for service and maintenance, casual and
student hourly employee wages. This account is pre-populated in the casual/student time entry form. The
organization default account can be overridden when entering hours in timekeeping systems.
The organization default account must not be a sponsored award, expendable gift, or endowment income
account.
The central LD administrator establishes an organization default account for each organization per
business manager request. Business managers may request changes to this account if needed.
    If you are setting up a new organization, indicate the organization default account on the Request to
    Add an Organization form. To add or change an organization default account for an existing
    organization, use the Request to Modify an Organization form. Both forms are available at the
    Organization Maintenance forms web site.

Organization Default Labor Schedule
Organizations may choose to request establishment of an organization default labor schedule. If an
organization default labor schedule exists, C&T, M&P and faculty compensation is distributed based on
this schedule if individual employee labor schedules have not been established.
For organizations in which several employees' compensation is charged to the same PTAEO or group of
PTAEOs, use of an organization default labor schedule can reduce or eliminate the need to schedule
labor by individual employee.
The organization default labor schedule must not include a sponsored award, expendable gift, or
endowment income account. Therefore, if wages and salaries in your organization tend to be funded by
such awards, a default labor schedule may not be useful.
    To help decide if your organization should use a default labor schedule, consider the following:
    1. Are most employees' salaries or wages funded by non-sponsored awards?


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    2. Are most employees' salaries or wages charged to the same non-sponsored PTAEO, or to the
       same group of non-sponsored PTAEOs split with the same percentages? Note that it is not
       necessary to have the same expenditure type – see Section 4, Auto population of Expenditure
       Type, regarding this flexibility.
    If you can answer yes to 1 and 2, use of a default labor schedule may be helpful for your
    organization.
    Note that you will still be responsible for entering labor schedules for those employees whose
    compensation should be charged differently from the organization default labor schedule.
Organization default labor schedules are created and maintained by the central LD administrator.
    If you are setting up a new organization, indicate the organization default labor schedule on the
    Request to Add an Organization form. To add, change or remove an organization default labor
    schedule for an existing organization, use the Request to Modify an Organization form. Both forms
    are available at the Organization Maintenance forms web site.
    Business managers who do not wish to use an existing organization default labor schedule should
    request that the schedule be changed or removed (end-dated). If the organization default labor
    schedule is not end-dated, employees will be charged to it if you forget to schedule them at the
    assignment level.

3 – Suspense Accounts

Organization Suspense Account
The central LD administrator establishes an organization suspense account for each organization
(excluding building organizations).
    The same unique project, task and expenditure type are used for all suspense accounts, so that they
    can be easily identified. The Medical School and central campus have their own unique awards for
    suspense accounts
LD distributes payroll costs to the organization suspense account if:
    a PTAEO that was valid at the time of scheduling is no longer valid.
    the percentages that have been entered for split charging do not total 100%; in effect, a PTAEO was
    not entered for a percent of the employee's payroll cost.
    no current labor schedule exists and the organization does not have an organization default labor
    schedule or organization default account.
Run a Distribution History by Org (see Section 9 for more information) at least monthly, and preferably
more frequently, for each organization for which you are responsible to determine if there are suspense
entries that need to be cleared. Clear suspense entries using the distribution adjustment form. (For
suspense items generated while processing GSPS payments, see special procedures in Section 8.)
    For suspense entries between -$100 and +$100 per person per pay period, clearing is optional. The
    only exception is suspense items caused by an overcharge to a sponsored award; such entries must
    be cleared regardless of the dollar amount.
Suspense entries should be cleared within one month of occurrence. Clearing promptly will allow you to
produce more accurate financial reports.
The central LD administrator monitors organization suspense accounts to ensure that entries are being
cleared promptly.

Prevent Future Suspense Entries
After clearing the suspense account, note the errors that caused the suspense entries. If a suspense
entry was caused by a labor schedule error, modify the labor schedule to prevent future occurrences.
Below are some examples of why charges would go to suspense:
    project-task-award setup in OGM
    HR assignment data change (e.g., organization, job, tenure status)

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    rules for auto population of expenditure type (see Section 4).
Contact the central LD administrator for more information.

Institutional Suspense Account
The central LD administrator maintains an institutional suspense account. Payroll costs are distributed to
this account if:
    an employee does not have a valid home organization
    an employee does not have a labor schedule, or the labor schedule is incomplete, and there is no
    organization default labor schedule or organization default account, and no organization suspense
    account.
These conditions are most likely to occur when there is a new organization for which an organization
suspense account has not yet been established.
The central LD administrator monitors the institutional suspense account regularly and works with
department business managers to identify the organizations to which suspense entries should be
distributed. Once the organizations are identified, the LD administrator transfers charges to the
appropriate organization suspense account.


4 – Auto-population of Expenditure Type

Purpose
Auto-population rules are applied during the labor distribution process to determine expenditure types
based on certain employee job-related parameters. This process accomplishes the following:
    promotes accurate distribution and reporting of expenses by expenditure type
    increases the usefulness of the organization default labor schedule, by automatically converting the
    default expenditure type to values that are appropriate for individual employees.
    increases the usefulness of assignment-level labor schedules, by automatically converting the default
    expenditure type to values that are appropriate for specific earnings elements.

      Auto-population Examples
      Organization X's organization default labor schedule contains expenditure type 724700 (Default
      Labor Schedule Expense).
      1. An M&P employee has been hired             Auto-population will automatically convert the default
      and is scheduled to the organization          expenditure type to the appropriate type for the M&P
      default labor schedule.                       employee: 721000 (Staff M&P).
      2. A C&T employee works 5 overtime            Auto-population will automatically convert the default
      hours in addition to 37.5 regular             expenditure type for the overtime earnings element to
      hours.                                        the appropriate type for C&T overtime: 722300 (Staff
                                                    C&T Overtime).

Auto-correction Process
When payroll data is imported into LD, or when auto-population rules are used during distribution
adjustments, each record is screened based on some or all of the following parameters, to determine the
appropriate expenditure type:
    Earnings element (e.g., regular salary, overtime, etc.)
    Job (e.g., faculty, M&P, C&T, etc.)
    Position (e.g., assistant professor, administrative assistant I, etc.)
    People Group flex field: Tenured (Y or N)

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    for faculty, PDF, PDA only: Additional Assignment Details: Tenure/Continuous Flag on Assignment
    (T, R, or C).
Auto-population of expenditure type relies on the accuracy of data in the Human Resources database.
Certain special expenditure types are not overridden; users receive training in appropriate use of these
values as needed. For example, Wages Unallowable Under Section A-21 is an expenditure type that is
not overridden.

5 – Scheduling Labor

When an Individual Labor Schedule is Needed
Organizations that use an organization default labor schedule: All C&T, M&P and faculty
compensation is automatically charged to that schedule if no other charging instructions are entered. In
such cases, individual employee labor scheduling is not needed.
    If an employee's salary or other compensation should be charged to a PTAEO or PTAEOs other than
    the organization default labor schedule, the department business manager or designee must enter an
    individual labor schedule for that employee.
Organizations that do not have an organization default labor schedule: The business manager or
designee must schedule labor for all C&T, M&P and faculty employees.
    If no individual labor schedule is entered for an employee, compensation for that employee will
    automatically be charged to the organization suspense account.

What the Labor Schedule Does
Each employee's assignment has an associated labor schedule in which the employee's work may be
charged to one or more PTAEOs on individual schedule lines.
Labor is scheduled in percentages, not dollars. When a payroll is run, LD distributes the actual charges to
the PTAEO(s) specified in the individual labor schedule if any, or to the organization default labor
schedule if one exists, or to the organization suspense account (see Distribution Hierarchy, below).
Both current and future charging instructions can be entered in an employee labor schedule at the same
time. If funding sources or projects are expected to change at a later date, or the percentages of a split
charging will change, schedule lines can be entered for the future charging instructions, with appropriate
start and end dates.
The labor schedule maintains a history of the PTAEOs to which the employee's earnings have been
scheduled, with beginning and end dates.

Prerequisites for Scheduling Labor
In order to schedule labor for an employee the following prerequisites must be in place:
    the employee must have an active HR assignment record with a valid primary organization and
    position
    projects, tasks and awards must be set up and projects and awards must be linked in OGM. For more
    information, refer to project and award procedures.

Scheduling Levels
There are three labor schedule levels:
    by organization: the organization default labor schedule
    by individual employee assignment
    by specific earnings element (e.g., overtime, clinical bonus, faculty summer compensation) for an
    individual employee.
The table below summarizes the use of each labor schedule level:

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      Scheduling level                Use when…
      Organization level                  the organization has a default labor schedule, and all of the
      (organization default labor         employee's salary or wages and any anticipated extra
      schedule)                           compensation should be charged to the default labor
                                          schedule.
                                             If this option is applicable, you do not need to enter an
                                             individual assignment-level labor schedule.
      Assignment level                    there is no organization default labor schedule, or the
                                          employee's regular salary or wages should be charged
                                          differently from the default labor schedule.
                                             Schedule at this level for the employee's regular salary or
                                             wages and any anticipated extra compensation that
                                             should be charged in the same way as the regular salary
                                             or wages.
      Element level                       any anticipated earnings element (e.g., overtime, faculty
                                          summer compensation, etc.) should be charged differently
                                          from the regular earnings as specified in the assignment-level
                                          schedule, if one exists, or from the organization default labor
                                          schedule.
                                             If an organization wishes to specify separate charging for
                                             more than one earnings element, a separate element-level
                                             schedule must be created for each element.
                                      Example 1
                                      A faculty member may earn a clinical            Create an element-
                                      bonus that should be charged to a               level schedule to
                                      different account from the employee's           charge the clinical
                                      regular earnings.                               bonus to the
                                                                                      desired PTAEO.
                                      Example 2
                                      A C&T employee is expected to earn              Create an element-
                                      overtime pay from time to time and              level schedule to
                                      these earnings should be charged to a           charge the
                                      different PTAEO from the employee's             overtime earnings
                                      regular earnings.                               element to the
                                                                                      desired PTAEO.


                                      In addition, the employee is expected           Create another
                                      to earn a night shift premium that              element-level
                                      should be charged differently from the          schedule to charge
                                      employee's regular earnings.                    the night shift
                                                                                      premium earnings
                                                                                      element to the
                                                                                      desired PTAEO.

Distribution Hierarchy
LD generally distributes M&P, C&T and faculty payroll costs for each employee and earnings element
according to the following labor schedule hierarchy:
1. Element-level: If an employee element-level schedule exists, LD distributes these charges first.
2. Assignment-level: After distributing element-level charges, or if no element-level schedule exists, LD
   distributes the rest of the employee's earnings charges based on the assignment-level schedule, if
   one exists.

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3. Organization default labor schedule: If no assignment-level schedule exists, LD distributes the rest
   of the employee's earnings charges based on the organization default labor schedule, if one exists.
4. Organization suspense account: If there is an error in #1-3, LD distributes earnings charges to the
   organization suspense account.
5. Institutional suspense account: If there are errors in #1-4 above, LD distributes earnings charges to
   the institutional suspense account.

Start and End Date
The start date for a schedule line may be one of the following:
     the effective date of the salary or wages
or
     the start date of a sponsored award, if later than the salary or wage effective date
Exception: You cannot enter a start date for which the associated payroll cycle has already run. The start
date must be within a payroll cycle that has not yet been processed. Refer to the payroll schedule for
dates.
 Example
 An M&P employee’s hire date is            You must enter August 1 as the start date for the labor
 July 25, the July monthly payroll         schedule, because the July payroll has already run.
 was run on July 27, and you are           The July salary will be charged to the organization default labor
 entering the data on July 28.             schedule, if one exists, or to the organization suspense account.


All labor schedules must have an end date.
Other end-dated projects and awards:
     Many administrative projects and awards have end dates in OGM of 30-JUNE-2004. GA will be
     changing all schedules for General Approprations Gifts and Endowment Awards that are currently
     using 30-JUNE-2004 to 30-JUNE-2050 in the fourth quarter of 2003. Schedule lines containing such
     projects or awards should reflect this end date.

Percentages
One hundred percent of an employee's labor costs must be distributed at any point in time.
     If an assignment-level or element-level schedule includes more than one active PTAEO at any time,
     the percentages for the active PTAEOs must always total exactly 100.00.
If at any point in time an employee is scheduled at less than 100 percent, the unscheduled costs are
distributed to the organization suspense account.

Preventive Maintenance
Monitor and update labor schedules regularly to ensure that costs will be properly distributed in the future
and to minimize the need for distribution adjustments. Use labor schedule reports for this purpose - see
Section 9.
Modify employee labor schedules if:
     awards, projects, tasks, organizations and/or expenditure types have changed or are expected to
     change at a later date (for past changes, distribution adjustments may also be required)
     percentages for split charging should change for future payroll processing
     a schedule contains errors that must be corrected for future payroll processing.
You can override a schedule line that has a future start date, but you cannot override a current schedule
line that has been used by a payroll.


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    If you need to change a schedule that has been used by payroll, you will need to end date the current
    line with the last date the line will be valid, and enter a new replacement line or lines:

6 –Preventing and Correcting Errors

Review Funding, Organizational, and Personnel Events
On a regular basis, review funding, organizational, and personnel events that have occurred recently or
are expected to occur during the next few months. Consider the likely impact of such events in which
labor costs are distributed in the organization(s) for which you are responsible.
The following are examples of financial and staffing events that often impact labor cost distribution:
 Category                  Typical Events With LD Impact
 Project, task, award,         an existing sponsored award ends; labor costs are currently assigned to it
 organization changes          a new sponsored award is established that will have labor costs assigned
                               to it
                               a new organization, project, or task is established that will have labor costs
                               assigned to it
                               a change is made to an existing organization, project, or task that has or
                               will have labor costs assigned to it
 Reallocation of               remaining sponsored award funds need to be expended appropriately and
 specific expenditures         labor costs can be applied
 needed to meet                projected expenditures will exceed budgeted limits and labor costs are
 budget goals or limits        involved
                               actual expenditures have exceeded budgeted limits and labor costs are
                               involved
 Personnel changes             reassignments to different projects within organization
                               leaves of absence, returns from leave
                               resignations, layoffs, terminations
                               promotions, transfers, demotions
                               within organization
                               different organization within department
                               leaving department
 Compensation                  additional compensation or change in earnings elements, due to new or
 changes                       modified duties or shifts or other circumstances, that will be charged
                               differently from the employee's regular earnings
                               wage or salary increases that require changes in the distribution of labor
                               costs


 If the event…             Then…
 will occur during a           change future payroll cost distributions by modifying employee labor
 future payroll cycle          schedules.
 has already occurred,         redistribute past payroll charges by submitting distribution adjustments:
 and affects payroll       Note: For labor charges incurred prior to July 1, 1999, use the journal entry
 distributions that have   process and select the YConvLabTrf JE type.
 already been
 processed




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 involves both future          change future payroll cost distributions by modifying employee labor
 payroll cycles and past       schedules.
 payroll distributions         and
                               redistribute past payroll charges by submitting distribution adjustments:

Labor Costs Involving Sponsored Awards
    Make sure that a new schedule line has been entered to replace any award that will end soon, if the
    employee will continue to work for your organization beyond the end date of the award.
    If sponsored awards will be rebudgeted or projects or tasks will be changed, modify employee labor
    schedules accordingly.
    As new sponsored awards are established, modify labor schedules as appropriate to assign
    employees to the new funds.

Correct Distribution Errors
When you review financial reports, note any errors in distribution of payroll costs. Such errors may be
caused by one or more of the following:
    PTAEO entered in an employee's labor schedule was not valid when LD processed the payroll.
    incorrect percentages were entered in an employee's labor schedule, resulting in excessive charges
    to one or more PTAEOs and insufficient charges to other PTAEOs.
    an individual labor schedule should have been created for an employee but was not created;
    therefore the labor costs were incorrectly distributed to the organization default labor schedule, if one
    exists for the organization, or to the organization suspense account.
To correct such errors:
    run a Distribution History by Org report to determine if errors occurred during LD processing of
    payroll, and to obtain necessary information for adjustments.
    enter distribution adjustments.
    clear the organization suspense account.
    correct employee labor schedules so that future payroll cycles will distribute costs correctly.

7 – Labor Accruals

Purpose
Biweekly and weekly payroll periods do not always coincide with the end of a fiscal month. Sometimes a
month ends during a weekly or biweekly payroll period; in such cases, the payroll charges for the payroll
period are actually incurred in two fiscal months, but are not processed until the second month.
Labor accruals estimate the labor costs that were incurred in the first fiscal month but not yet processed.
The accruals charge the estimated expenses in the appropriate month.


 Example
 For the biweekly payroll cycle                In order to report accurately on the March fiscal month, a
 beginning on Sunday, March 28, and            labor accrual is calculated and recorded for the estimated
 ending on Saturday, April 10, three           labor costs incurred on March 29, 30, and 31.
 working days fall into the March
 accounting period and seven working
 days fall into the April accounting
 period.
Labor accruals always use the earnings element Accruals for ease in identification.
Monthly and semi-monthly payrolls do not require accruals, since employees are paid through the end of
the fiscal month.
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How Labor Accruals are Processed
Labor accruals are processed during the last week of a fiscal month or the first few days of the next
month.
    For the biweekly payroll, accruals are processed through LD to the General Ledger.
    For the weekly payroll, accruals are calculated at the divisional level and entered directly in the
    General Ledger via journal entries.
Accruals are calculated based on employee, assignment, standard working schedule and standard salary
or wage rate information. Accruals are not calculated for any employee whose employment began or
ended during the accrual period, in order to simplify the calculation.
Accruals are distributed based on the labor schedule in effect on the dates for which the accruals are
calculated.

Reversal of Accruals
In the subsequent month, when actual payroll charges are posted to the General Ledger, the accruals
previously posted are reversed by the central LD administrator.
If an accrual went to the suspense account, the reversal should also go to the suspense account. In most
cases, you should allow the subsequent reversal to clear an accrual that gets charged to suspense.

8 – Charges Originating in GSPS

Overview
In most cases, payments suspend because something about the existing PTAEO is not meeting
validation specifications: dates, sequence of numbers in the PTAEO string, relationship between projects,
tasks and awards, etc.
For students paid via GSPS, it is essential that any changes in PTAEOs originate in GSPS, not in LD.
    In such cases, suspended transactions should remain in suspense until GSPS-generated
    transactions net them out to zero, usually within 30 days.
If the changes are made in LD and not in GSPS, and sent on to the General Ledger, inconsistencies
will be created with data stored in GSPS, and the incorrect GSPS data will continue to initiate
payments to students that will suspend until the data is corrected in GSPS.

Determine Error Source for Payments to Graduate Students
If a semi-monthly payment to a graduate student appears in a suspense account, identify the source of
the error, and verify that the error message is correct.
Proceed as follows:


If…                                             Then…
the error is not in the PTAEO                        notify the system owner of the error.
(e.g., an end-date is incorrect in OGM, or a         when you have received notice that the original
task has been requested but has not yet              PTAEO is now valid, in LD do a distribution
been set up)                                         adjustment to transfer the payment out of the
                                                     suspense account to the original PTAEO charged.
                                                     no further action is required in GSPS.




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                                                                                1315 PR.01 Labor Distribution
there is an error in the PTAEO                     determine if the transaction originated in GSPS:
                                                      Not all semi-monthly payments originate in GSPS.
                                                      While all graduate and professional students
                                                      receiving regular payroll checks are paid on a
                                                      semi-monthly basis, payments to students
                                                      enrolled in the professional schools (Law,
                                                      Medicine, Art, Architecture, etc.) are not
                                                      processed through GSPS.
                                                   for assistance in determining if payments to a
                                                   particular student originated in GSPS, contact the
                                                   Graduate School Financial Aid Office, 432-2739.
                                               If…                   Then…
                                               the transaction did        make changes via LD
                                               not originate in           distribution adjustments.
                                               GSPS                       ensure that labor schedules
                                                                          are corrected for future
                                                                          transactions.
                                               the transaction            see below.
                                               originated in GSPS



Clearing GSPS Suspense Charges
If the transaction originated in GSPS and needs to be changed, make the change in GSPS, not in LD.
Leave the suspended charges in the suspense account until the GSPS-generated transactions
process according to the semi-monthly payroll schedule.
Make changes in GSPS as follows:
    If you are a GSPS-user, make the change as you always have, directly in GSPS.
    If you are not a GSPS user, notify Jennifer Brinley (jennifer.brinley@yale.edu), supplying the name of
    the student, the PTAEO to be changed, the dates and dollars (if any) to be changed, and any other
    explanation required. Use the GSPS correction form for this purpose.
It is essential to leave the suspended charges in the suspense account until the changes made in GSPS
generate the correcting transactions at the time the next semi-monthly payroll is run. These correcting
transactions will usually net out to zero all of the related transactions in your suspense account.
An example of a GSPS change in charging is shown below.




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                                                                               1315 PR.01 Labor Distribution


Example: GSPS Change in Charging Instructions
                                                            Semi-
                                                            Monthly
                  Start Date     End Date     Amount        Amount
Aidline (a):      9/1/99         12/31/99     4,000         500
Payroll dates:    9/15/99                                   500          Both GSPS and LD charge (a)
                                                                         $500
                  9/30/99                                   500          Both GSPS and LD charge (a)
                                                                         $500
                  10/15/99                                  500          Both GSPS and LD charge (a)
                                                                         $500
                  10/31/99                                  500          Both GSPS and LD charge (a)
                                                                         $500
grant ends        11/15/99                                  500          GSPS charges (a) $500, LD
                                                                         charges suspense $500 since
                                                                         the award has been end dated
                                                                         on 10/31/99 in OGM
                  11/30/99                                  500          GSPS charges (a) $500, LD
                                                                         charges suspense $500
Total Aidline                                               3,000
(a):
On December 4, department learns that grant (a) ended on 10/31/99 in OGM. Department changes
end-date of Aidline (a) in GSPS to 10/31/99 and creates Aidline (b).
In GSPS:
Corrected (a):    9/1/99         10/31/99     2,000         500
Aidline (b):      11/1/99        5/31/00      6,000         500
On December 9 (payroll "run" for December 15 paychecks) GSPS will generate adjusting
transactions:
1. In GSPS credit Aidline (a) for the $1,000 paid in          GSPS –1,000 (a), LD –1,000 suspense,
   November.                                                  since the award has been end dated on
                                                              10/31/99 in OGM
                                                              LD now has a net of $0 in suspense
2. In GSPS debit (b) for an additional $1,000 in              Both GSPS & LD charge (b) $1000
   December 15 payroll to reflect Aidline (b) charges for
   November.
3. In GSPS debit (b) for usual $500 in December 15            Both GSPS & LD charge (b) $500
   payroll.
Both GSPS and LD are corrected at this point.


9 – Reports

Labor Schedule Reports:
A Labor schedule report is available in the User Reports section of the LD menu:
    Employee Labor Schedule Report
The report can be run at any time to:
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                                                                                                        1315 PR.01 Labor Distribution
     review employee labor schedules
     determine if any schedules contain invalid lines that will cause charges to go to a suspense account.
Look for some of the reasons why a charging instruction might go to suspense:
     the begin and end date of the project
     the begin and end date of the award
     the begin and end date of the task
     the begin and end date of the expenditure organization
     the status of the project (if it is closed)
     the status of the award (if it is closed)
     the linkage in OGM of the project and award.

Distribution History by Org
The Distribution History by Org report displays actual payroll distributions. It shows which earnings
elements were processed through LD and what PTAEOs were charged for those dollars.
Use the Distribution History by Org report to obtain distributions by earnings element, necessary for
submission of distribution adjustments.
Data is available after LD has finished processing payroll batches. It is not necessary to wait for the data
to get to the Data Warehouse.
This report reflects original payroll and any changes that were caused by subsequent approved and
processed distribution adjustments or manually processed adjustments made by the central LD
administrator.
     After a distribution adjustment is submitted and approved, the original data still appears.
     After the central LD administrator performs the Summarize and Transfer process, the data (as
     adjusted) appears properly. Summarize and Transfer is run at least once a day at 1 PM. It is therefore
     recommended that departments try to have distribution adjustments approved by 1 PM each day.

The official version of this information will only be maintained in an on-line web format. Any and all printed copies of this material are
  dated as of the print date. Please make certain to review the material on-line prior to placing reliance on a dated printed version.




4/21/08                                                                                                                    Page 15 of 15

				
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