Business Procedures Manual

Fiscal Affairs Division

5.7 Employee Compensation Accounting

5.7 Employee Compensation Accounting

(Last Modified on January 30, 2018)

Employee compensation and associated tax and benefit costs should be recorded in the general ledger based upon activity from the institution鈥檚 payroll system including limited activities originating in the accounts payable system (i.e. unemployment insurance and workers compensation expenditures). Generally, the payroll system should be the system of record for personal services expenditures.


5.7.1 One六合彩资料大全 Connect Combo Codes: General Ledger Chart Fields

(Last Modified on January 30, 2018)

For One六合彩资料大全 Connect institutions, combo codes are a name for the full general ledger chart string that is utilized for an expenditure (similar to payroll distribution codes and speed types). The combo code alleviates the need to enter the full chart string. A combo code should only be used to represent one specific full chart string. If any chart field component of the full chart string changes, a new combo code should be established in Financials. Multiple combo codes cannot reference the same full chart string.

Scenario 1: ALLOWED IN One六合彩资料大全 Connect

COMBO CODE DEPT PROJECT FUND PROGRAM CLASS
XYZ 0102100 10000 11100 11000
ABC 0102100 10500 11100 11000

Scenario 2: NOT ALLOWED IN One六合彩资料大全 Connect

COMBO CODE DEPT PROJECT FUND PROGRAM CLASS
XYZ 0102100 10000 11100 11000
ABC 0102100 10000 11100 11000
Issue: multiple combo codes referencing the same full chart string.

Scenario 3: NOT RECOMMENDED IN One六合彩资料大全 Connect

COMBO CODE Effective Date DEPT PROJECT FUND PROGRAM CLASS
XYZ 07/01/2016 0102100 100 20000 11100 11000
XYZ 10/01/2016 0102100 101 20000 11100 11000
Issue: Same combo code referencing different full chart strings.

An institution cannot elect to use multiple combo codes for one full chart string (Scenario 2 above).

If an institution does not follow the recommended best practice and uses the same combo code for different full chart-field configurations (Scenario 3 above), the institution must implement alternate procedures for correction of prior expenditures and the correction of encumbrances. (Consult the One六合彩资料大全 Connect SOP for more detailed guidance.) Other processes (currently unidentified) may also be negatively impacted by breaking the one to one relationship between combo codes and chart-field combinations.


5.7.2 One六合彩资料大全 Connect Funding (General Ledger Distribution)

(Last Modified on January 30, 2018)

One六合彩资料大全 Connect utilizes two types of departments: HR Departments and Financials Departments. The HR department defines the institution鈥檚 organizational structure. The Financials department is a cost center. There is not a one to one relationship between the HR department and the Financials department but in many cases they are one in the same.

The institution鈥檚 HR department is maintained in the One六合彩资料大全 Connect system. The HR department may not directly correspond to the institution鈥檚 Financials department.

The institution鈥檚 Financials department is maintained in the institution鈥檚 financials system and is utilized by One六合彩资料大全 Connect as a component of the combo code for usage in the GL distribution processes. (Reference Section 5.7.1 for more information for combo codes.) Financials departments (cost centers) are not loaded to the One六合彩资料大全 Connect system as HR departments.

The One六合彩资料大全 Connect Department Budget Table (DBT) is the primary location for designating the funding source for personal services expenditures. The funding source is the financials system general ledger chart-field combination to which the personal services expenditures are recorded. DBT is defined by the institution鈥檚 HR department. A combo code is designated on the DBT for each HR department, and for positions within an HR department. The combo code references the Financials department.


5.7.3 General Ledger Corrections for One六合彩资料大全 Connect System Transactions

(Last Modified on January 30, 2018)

Since the One六合彩资料大全 Connect system is the system of record for personal services, corrections needed for One六合彩资料大全 Connect personal services transactions should originate in the One六合彩资料大全 Connect system. There are two methods to make these corrections in the One六合彩资料大全 Connect system: Direct Retroactive Distribution (Direct Retro) and Budget Retroactive Distribution (Budget Retro).

5.7.3.1 One六合彩资料大全 Connect Direct Retroactive Distributions (Direct Retro)

Direct Retros are used to redistribute funding (credit previously expended chart string and debit correct chart string) without making changes to the specified funding on the department budget table. This would be for one time corrections and would not be available for any future or retroactive payments from the department. Reference the One六合彩资料大全 Connect SOP PRA-CA-114-PR-003 for examples and more detailed information.

5.7.3.2 One六合彩资料大全 Connect Budget Retroactive Distribution (Budget Retro)

Budget Retros are utilized in One六合彩资料大全 Connect when the original funding, as established on the department budget table, has been determined to be incorrect. Budget Retros will automatically make corrections for all previously distributed (transactions recorded in the general ledger) transactions based upon the effective date of the funding change through the next effective date of a change to the department budget table. The change will be available for any future retroactive payments that may occur which helps to ensure the distribution issue does not continue. Budget Retros are only utilized for changes within an One六合彩资料大全 Connect HR department. If the change is between One六合彩资料大全 Connect HR departments a direct retro must be utilized. Reference the One六合彩资料大全 Connect SOP PRA-CA-114-PR-002 for examples and more detailed information.


(Last Modified on January 30, 2018)

Select tables within the One六合彩资料大全 Connect system will be configured with audit capabilities to identify changes as well as to identify who made the changes.

Position Funding

The department budget table (which established position funding) will be configured to maintain changes as well as who made the changes. Institutions should periodically review the person(s) responsible for making changes to the position funding table to ensure they are authorized personnel.

GL Actuals

The pay earnings distribution, the pay deductions distribution, and the pay tax distribution tables will be configured to maintain changes as well as who made the changes. Institutions should periodically review the person(s) making changes to the GL Actuals table to ensure they are authorized personnel.


5.7.5 One六合彩资料大全 Connect Suspense Account

(Last Modified on January 30, 2018)

The One六合彩资料大全 Connect system utilizes a suspense account for payroll related transactions for which the system cannot identify a general ledger distribution account. The institution should review the suspense account after each payroll and make the necessary correction for any expenditures that posted to the suspense account.


5.7.6 Benefits and Payroll Liabilities Reconciliation

(Last Modified on January 30, 2018)

A benefits and payroll liabilities reconciliation should occur at a minimum on a monthly basis. The benefits reconciliation process should include the following:

  1. Benefits Reconciliation (premium paid to provider reconciled to payroll deduction/expense)
  2. Institution General Ledger Activity to Payroll System Activity
  3. Listing of cumulative reconciling items by person for each payroll liability account

The One六合彩资料大全 Connect benefits administration vendor will provide an interface file for the premiums paid to the providers by employee. Each institution should use this file to reconcile to the amounts processed by payroll.

Reconciling items will occur for deductions/expenses taken in accordance with the accelerated deduction schedule for applicable employees, as discussed in BPM Section 5.1.4, Withholding Schedules for Academic Year Contract Employees. By the end of July, these reconciling items, which are commonly referred to as 7/5th items should be eliminated.

The 六合彩资料大全 Benefits Reconciliation Module is the preferred/recommended method for institutions to perform the benefits reconciliations.


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