Payroll Encumbrance
Use this option to encumber employee salaries and benefits in the Expenditure Ledger and Project Ledger. The option initially loads existing encumbrances from the ledgers in Fund Accounting and then calculates the new encumbrances and replaces the original amounts. This is the last step in the pay run process, whether you are using the Job Stream Process or selecting the final options individually.
Employees that are currently being processed for summer pay fiscal year accruals will not be included in the payroll encumbrance.
Payroll Encumbrance Reports
The system generates two reports on the encumbrances:
Payroll Encumbrance Expenditure Account Detail Report lists the encumbrance amounts stored in expenditure accounts. The report default file name is payenc1.rpt if sorted by budget unit and payenc2.rpt if sorted by employee last name.
Payroll Encumbrance Project Account Detail Report lists the encumbrances stored in project accounts. This report only applies if your organization uses project accounting. The report default file name is payenc3.rpt if sorted by budget units and payenc4.rpt if sorted by employee last name.
Encumbering Salaries
After processing a pay run, you can use the Payroll Encumbrance option to recalculate the encumbered balances in employee records. During the load process, the system subtracts the paid-to-date amounts from their contract limits or annual salaries. The system then liquidates existing encumbrances in the Fund Accounting System, replacing them with the new encumbrance amounts.
The Payroll Encumbrance option also copies actual salaries to the Projected Salary field in employee Position records. In addition, the system distributes the encumbrances among the accounts specified in the Position records, adding the pay amounts to the Projected fields in the positions affected. These additional functions only apply if you use the Position Control System.
Payroll encumbrances only include pay rates in the system with start & end dates in the current fiscal year.
If you have an encumbrance that is incorrect, the only way the encumbered amount in the Fund Accounting System can be changed is by changing the Contract Limit amount on the employee Pay Rate Data page and running the Load option again.
Encumbering Benefits
The Payroll Encumbrance option encumbers employer-paid benefits in the Fund Accounting System. Besides the amounts of assigned benefits, this includes FICA, Medicare, and Workers' Compensation benefit amounts.
The benefits encumbrance depends on the following fields in the Deduction table:
Encumber Benefits | Determines whether the benefit should be encumbered. If the field is selected, the system encumbers benefits for all employees who have the benefit record assigned. |
Num of Time Encumbered | Defines the number of times the benefit should be taken in the current fiscal year. |
Remaining | Tracks the number of times remaining in the current fiscal year for encumbering the benefit. Tracking only applies to benefits with a benefit method of A - Table Amount or S - Employee Amount. |
The encumbrance also depends on the following field in employee Deduction records:
Encumbrances Remaining | Tracks the number of times remaining in the current fiscal year for encumbering the benefit. This is updated with each pay run and can also be updated in the Manual Checks and Void Checks options. The field is reset when you run the Fiscal Year End and Future Changes options are run. |
Encumber Salary and Benefit Amounts in Fund Accounting
In Human Resources, on the Pay Run Processing page, search for and select the current pay run.
Select Payroll Encumbrance.
Select Load.
In the Print window, enter your report settings, and then select OK.
If you use project accounting, another Print window displays. Enter your report settings, and then select OK.
Select Next.
On the Sort Payroll Encumbrance Reports page, select one of the following radio buttons:
Sort by Organization: Sorts by Organization and Account, with totals listed for each organization/account combination. If you use project accounting, the project report sorts by project number. Both reports list employees alphabetically by last name under the appropriate organizations and projects.
Sort by Employee Name: Sorts by employee last names.
Skip Report: Encumbers amounts without generating a report.
Select Next.
In the Print window, enter your report settings, and then select OK.
If you use project accounting, another Print window displays. Enter your report settings, and then select OK.
You return to the Pay Run Processing page when processing is complete.