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?
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