Accrual Variance Extract by dffhrtcv3

VIEWS: 0 PAGES: 21

									Accrual Variance
    Extract




                    Payroll
          Finance
Purpose   A tool that helps verify
          accruals (past and future) are
          correct.
The system will calculate future accrual
amounts and, using accruals in Pay History,
combine the amounts and determine the
difference (if any).

  If there are any
  differences, they
  can be posted to
  the employee’s
  master file and
  interface to
  finance. No
  manual journal
  entries !!
     Requirements for accurate
            calculations
   The Accrual Rate on the Job Info
    screen must be correct.
   The Accrual Code on the Job info
    screen must match an accrual code in
    the Accrual Calendar
   The Accrual Calendar must have Pay
    Dates that match the dates in the Pay
    Date table.
          Requirements for accurate
                 calculations
   The Accrual Calendar must have the accurate
    number of Total Days Worked.

   Payoff Date on contract jobs (Pay Type 1 and
    2) should be correct and should exist in the
    Pay Dates table.

   All future pay dates for the school year must
    exist on the Pay Date table

   No future supplemental (non regular payroll)
    pay dates should exist on the Pay Date table.
    Researching Extract Errors
   After calculations are completed for
    the selected employees, the system
    will display an extract error list.
    For the system to provide an accurate
    reflection of the status of accruals; all
    errors should be researched and
    corrections made prior to re-
    calculating. Failure to do so can result
    in an incomplete reflection of District
    Totals of over or under accruals.
The system starts calculations from the first
unprocessed pay date in the Pay Date table and
ends with the last pay date in the Pay Date table.




 As each pay date has completed
processing, a message will display
indicating all calculations are
completed for that pay date, such
as 04/24/2006.
   If there are any errors, they will
    display between each pay date.
    Many of the errors reported are the
    same errors displayed when regular
    payroll calculations have been
    performed.

   Calculations will continue until all
    pay dates in the Pay Date table have
    been calculated. The last date
    displayed will be reflective of the last
    date in the Pay Date table.
   Once a Payoff Date is reached for
    an employee, calculations will
    discontinue for that employee.

   If there are additional
    unprocessed pay dates in the Pay
    Date table, the system will
    continue processing for other
    employees until all pay dates
    have been calculated.
   Warning: Employee has distribution record for a job
   that is not in the job master for job: 950




These employees have multiple jobs with only
one job accruing. The Accrual Code on the Job
Info screen populates all jobs but unless the
Accrue Job field is selected, the job will not
accrue. Calculations will be performed for these
type employees on the job(s) that do accrue and
the results will display on the variance reports.
Failure: Accrual variance cannot be calculated.
This message generally displays after the above warning
message. When this error occurs, it means the Accrue
Job field on the Job Info screen is no longer selected but
the employee has accruals in pay history. Re-calculations
should be performed. Failure to make this change prior
to re-calculating the variance will cause these employees
to not be reflected on the variance reports.
Failure: Contract balance less than standard pay rate for
  job code: 103.
The ‘Start Calculations for pay date 07/24/2006’ is displayed
  above this error and indicates these employees have
  payoff dates on the Job Info screen that do not match a
  pay date on the Pay Date or Accrual Calendar table. Re-
  calculations should be performed. Failure to make this
  change prior to re-calculating the variance will cause these
  employees to not be reflected on the variance reports.
This report shows the Grand Total
Variance calculations totals based on the
information available on the selected
employees at that moment in time.
For example, this screen shows that employee
#519 is over-accrued and employee #7 is under
accrued. Their pay history records need to be
researched to verify the information and to
understand why this has occurred.
Employee #519



          Run the YTD
          Accrual Payroll
          Account
          Distribution Journal


         Total over accrued =
         $2,816.41 (5 cents
         less than the Accrual
         Variance Extract.
                    Employee #7
Quick check is to multiply the difference of
$2.607 times the # of Days Empld (187) for a
total of $487.51.
This amount exceeds the variance amount of
$453.61 by $33.89 and proves the employee
is under-accrued.
 $1875.47/$144.267 = 13 (Days on Accrual Calendar
                      13 X 141.660 = $1,841.58 -
                      $1875.47 = $33.89
                                Run the YTD
                                Accrual Payroll
                                Account
                                = $2,975.86
$141.660 X 21 Total Days Worked Distribution Journal
less Pay Rate of $22.48.16 = $726.70
This accounts for the $33.89 difference in the simple
calculation and the variance amount ($487.51
minus $33.89 equals $453.61) which is within
          $.01 cent of the variance.
   Change the Accrual Rate on the Job Info to
    $144.267 and then recalculate the variance.
    The key is to make necessary changes to the
    employee record FIRST, then recalculate the
    variance and Post to Master and Interface to
    Finance. If the Accrual Rate is not changed and
    the variance is posted with the existing rate,
    the variance amount will still be correct. BUT if
    the Accrual Rate is changed AFTER the variance
    has been posted, then the variance will need to
    be re-calculated.
What happens when errors are
        corrected?




This is an increase of $7,647.96 from the
first extract.
               Conclusion
   Create this report as often as
    necessary to review the status of
    employees’ accruals to be sure no
    surprises will occur as payrolls are
    processed throughout the fiscal year.
    Before the first payroll of the new
    school year is processed, the Accrual
    Variance Extract should be
    performed.
          Moral of this story?
   Catch potential errors by reviewing
    this report and future problem
    between payroll and finance can be
    avoided by taking a little time to
    verify the data.
    Wouldn’t  you
    rather be a
    day late than a
    dollar short?

								
To top