• Bi-weekly payroll is paid two weeks after the bi-weekly pay period in which the work was performed. This creates a need to accrue some payroll expense each month for all university accounts. This is automatically accrued to the general ledger.
• Monthly payroll is generally paid in the same month the work is performed. However, when payday falls in the following month, the posting of the payroll expenses to the general ledger will automatically be accrued (see Posting of Payroll Expense to the General Ledger below).

Automation:

Group	Pay Run ID	Off Cycle?	Pay Period Begin Date	Pay Period End	Vouchers Available	Job Pay Flag	Voucher Cutoff	Close Date	Check Date	Fiscal Period	Fiscal Year
BW1	B016052005	N	4/24/2005	5/7/2005	5/5/2005	5/10/2005	5/12/2005	5/13/2005	5/20/2005	11	2005
BW1	B018060305	N	5/8/2005	5/21/2005	5/19/2005	5/24/2005	5/26/2005	5/27/2005	6/3/2005	12	2005
BW1	B019061705	N	5/22/2005	6/4/2005	6/2/2005	6/7/2005	6/9/2005	6/10/2005	6/17/2005	12	2005

For Example:

Based on the payroll calendar above, bi-weekly payroll B018060305 has a period end date of 05/21/2005 (fiscal period 11). However, the payroll is posted on 06/03/2005 (fiscal period 12) even though the entire payroll was earned in May (10 working days). Therefore, an accrual entry is required for this payroll.

Bi-weekly payroll B019061705 has a period end date of 06/04/2005 and is also posted as a June payroll. Of the 10 working days covered by this payroll, 7 days are earned in May and 3 days are earned in June. Again, an accrual entry is required for this payroll.

For the May monthly operating statements, payroll expenses will be accrued for the 17 working days earned in May but not posted until June. The amount of the accrual will be estimated, based upon the last available bi-weekly payroll processed in the month of May. In this example the base for the accrual estimate will be bi-weekly payroll B016052005.

The formula for determining amounts for accrual:

Last Bi-weekly Payroll of the Period

x

Number of Days to Accrue Number of Days in a Bi-weekly Pay Period

The accrual will automatically reverse in the following month when the actual payroll is posted.

Only the earn codes selected as "Y" will be included in the bi-weekly payroll accrual calculation. The following diagram shows the earn codes selected by the program:

Earn Code	Description	Selected Y/N
RGN	Bi-weekly	Y
RGH	Regular & Student Hourly	Y
RGP	PERF Hourly	Y
OOR	Overtime Only Hourly	N
HRW	Work-study Hourly	N

These earn codes are designated "Y" or "N" by FMS Administration. For bi-weekly staff leave earn types are also accrued - sick, vacation, military, injury, etc.

Currently overpayments, cancellations, and hand-drawns are processed with off-cycle payrolls and would be excluded. Also, clearing account expenses and supplemental pays are excluded from the calculation. At this time, retroactive adjustments processed with bi-weekly payrolls would be included in the payroll accrual calculation.

When generating the accounting entries, the program will list as part of the document number the payrolls that are being accrued and reversed.

Accruals are posted with a document type of "PAYA" and reversed using document type "PAYN". Both of these document types have an offset object code of 9050 and do not affect cash.

To prevent overdrafts and to retain the budget to actual to encumbrance comparison, payroll accruals and reversals are accompanied by offsetting encumbrance transactions "PAYE":

Automated Example Accruals for May:

Account Object	Bal Type	Doc Type	Doc Number	Debit	Credit
19126102500	AC	PAYA	ACCR-1820	$10,000
19126109050	AC	PAYA	ACCR-1820		$10,000
19126102500	IE	PAYE	ACCR-1820		$10,000
19126109891	IE	PAYE	ACCR-1820	$10,000

The accrual estimate records payroll expenses in the month earned.

Example Reversals for June:

Account Object	Bal Type	Doc Type	Doc Number	Debit	Credit
19126102500	AC	PAYN	ACCR-1820		$10,000
19126109050	AC	PAYN	ACCR-1820	$10,000
19126102500	IE	PAYE	ACCR-1820	$10,000
19126109891	IE	PAYE	ACCR-1820		$10,000

The accrual reversals offset the actual payroll expenses that will be booked by HRMS/PeopleSoft when the payrolls are posted in June.

All of these entries are automatically recorded, each month, in the FIS. However, the formula used to calculate these accruals uses averages and assumptions. Therefore, sometimes the calculated estimate can be significantly different from the actual at the departmental level. If the difference is significant, the auxiliary can correct these accruals by submitting an Auxiliary Voucher Accrual (AVAE).

How to access labor accrual details by person:

Labor accrual details by person can be obtained by following the steps as identified here:

1. Log on to IUIE
   
2. Access the Labor Ledger Entry report by taking the following steps:
   
   • IUIE / Master Catalog / Financial / Labor / Labor Ledger Entry
   Note: If you do not have access to the report, the link for the report will appear grayed out. To get access:
   
   • Click on the grayed out Labor Ledger Entry report link to bring up a request access form
     
   • Enter an appropriate justification for requesting access in the space provided.
     
   • If applicable to your needs, select the check-box for ‘All-Campuses-System Wide’ to get report data for all campuses
     
   • Click on Request Access button
     
   • You will receive an e-mail when you have been granted access
3. Once access is obtained, you can go to the Labor Ledger Entry report using the same steps in IUIE as above and run the report with the following parameters:

PARAMETERS:

Chart of Accounts Code: The org’s chart code
Account Number: Account number(s) for analysis if needed
Organization Code: The organization code
Document Type Code: PAYA
Financial Balance Type Code: AC
University Fiscal Year: Fiscal year for analysis
University Fiscal Period: Fiscal period for analysis
Output Destination: Wait for Output
Select Columns to Include: All Columns
Maximum Number of Rows to Return: No Limit

The resulting report should contain labor accrual details by person.

Note: If the report fails to run the first time, try again. Many factors can affect a failure to run, including volume of data in the requested report, and volume of requests being sent by other users.