Kuali Days ConferenceMay 13 - 14, 2008

Sterling George, Indiana University

Marcel Villalobos, University of Arizona

Suzanne Zimbardo, University of Arizona

Labor Distribution and Effort Certification Modules

Agenda• Labor Distribution Module – Components and

Accounting Cycle

• Demonstration of Salary Transfer, Balance Inquiries and Correction Process

• Effort Certification

• Demonstration

Labor Distribution Module

ProcessesLabor Scrubber

Labor Poster

Labor Ledger Year End

e-DocsSalary Transfer (ST & YEST)

Benefit Transfer (BT & YEBT)

Labor Ledger Correction Process (LLCP)Labor Ledger Journal Voucher (LLJV)

Labor Distribution Module

Balance InquiriesAccount Status (Base Funds)Account Status (Current Funds)Calculated Salary FoundationEmployee FundingJuly 1 Position FundingLabor Ledger ViewLabor Ledger Pending EntryPosition Inquiry

Ledger TablesLabor Ledger DetailLabor Ledger Balance

Labor Distribution Module

Maintenance TablesLabor Benefits CalculationLabor Benefits TypeLabor Object CodeLabor Object Code BenefitsLabor Position Object Group

Labor ReportsLabor Account Transactions

Effort Certification Module

ProcessesEffort Certification Automated Report Period Update

Process

Effort Certification Batch Process

Effort Certification eDoc Create Process

Payroll Accrual Program

e-DocsEffort Certification

Effort Certification Re-Create

Effort Certification Module

InquiriesOutstanding Effort Certification Forms by OrganizationOutstanding Effort Certification Forms

Maintenance TablesEffort Certification Automated Report Period DefinitionEffort Certification Report Period DefinitionEffort Certification Report PeriodEffort Certification Report TypeEffort Certification Report Period Status

Kuali Accounting Cycle Diagram

Suspense, Continuation, Fringe, and Sub Fund Options

Labor Distribution – General

• Labor ledger contains detail salary and wage by person, position, type of pay, and pay period – benefits are aggregated by accounting string

• Payroll encumbrances recorded in labor ledger as internal encumbrances – updated with each payroll closing

• Document types can be established for Payroll Types – Normal Pay (PAY), Payroll Cancellations (PAYC), Payroll Accruals (PAYA), etc…

• Entries processed by the labor poster are aggregated and feed the general ledger

• When Labor transactions reach the GL, offsets are specified by Document Type – i.e., PAYC to hit Cash directly, PAY to run through Salaries Payable, etc…

Labor Ledger Specific Fields

• Earn Code - A category of pay indicating what an employee is being paid for, i.e. RGA (Regular Academic), SCK (Sick Nonexempt), FNL (Funeral), VAC (Vacation), OVT (overtime), RGN (Regular Pay Nonexempt Biweekly), etc.

• Pay Group – Payroll schedule and voucher grouping for different employee pay types, such as BW1 (biweekly staff), A10 (10-month Academic), A12 (12-month Academic), AS0 (10-month Academic Student Appointee), AS2 (12-month Academic Student Appointee), HRP (hourly PERF), HRW (work-study), S12 (12 month professional staff).

• Salary Plan - Similar to current appointment types, i.e., professional staff, academic, staff biweekly, hourly.

• Salary Grade - Job classification code similar to our current “rank code”.   The salary grade is a graduated scale that includes positions of different occupational groups.

• Company - The company is a high-level grouping of our employees. The IU company represents our W2 employees and IU2 represents our 1099R employees.

• Setid - The setid represents our campuses in our HR/Payroll System.

• Other payroll specific fields - include Employee ID, Position, Pay Run ID, Pay Period End Date, Pay Period Fiscal Year and Period, and Hours. The payroll ledger is a subsidiary ledger to the GL and contains all of the fields found in the GL.

Labor Distribution – Levels, Consolidations, and Benefits

• Payroll Object Codes report to Levels which report to Consolidations2000 Academic Salaries -> Academic Salaries (ACSA) -> Compensation

(CMPN)2500 Clerical Professional -> Bi-Weekly Salaries (BISA) -> Compensation

(CMPN)3000 Non-Student Hourly -> Hourly Compensation (HRCO) -> Compensation

(CMPN)5625 Fringe Benefits –> Benefits (BENF) -> Compensation (CMPN)

• Payroll Object Codes are assigned Benefit Types2000 Academic Salaries has Benefits Types of FICA (F), Fringe Benefits (G),

and Retirement Exempt (R)

• Benefit Types are assigned Percentages and Object Codes each Fiscal YearFICA (F) – 7.07% on Object Code 5760Fringe Benefits (G) – 12.74% on Object Code 5625Retirement Exempt (R) – 18.74% on Object Code 5772

Two Views of Labor – Actual (AC) and Effort Certification (AC + A2)

• On May 1 transfer April salary of $100 from Account A to Account B

• Actual (AC) appears as current month activity:Account Bal Type Period Debit Credit

A AC 11 $100

B AC 11 $100

Two Views of Labor – Actual (AC) and Effort Certification (AC + A2)

• Additional entries for Effort Certification (A2):Account Bal Type Period Debit Credit

A A2 11 $100

A A2 10 $100

B A2 11 $100

B A2 10 $100

Two Views of Labor – Actual (AC) and Effort Certification (AC + A2)

• Both Balance Types together provide full Effort Certification View (AC + A2):Account Bal Type Period Debit Credit

A AC 11 $100

A A2 11 $100

A A2 10 $100

B AC 11 $100

B A2 11 $100

B A2 10 $100

Labor Distribution Demonstration

• Salary Transfer

• Balance Inquiry Drilldown

• Accounting Cycle Reports and Correction Process

Questions?

Effort CertificationScheduled for Kuali Release 3.0

Kuali Days ConferenceMay 13 - 14, 2008

Effort Certification Overview

• KFS Effort Reporting system is fully integrated with the KFS Labor Ledger

• Creates routable Effort Report electronic documents based on Labor Ledger data

• Reporting periods can be customized by institution

• Reports can be approved as generated, or with changes. Changes create automatic payroll transfers in the Labor Ledger

Effort Certification Deliverables

Component Development Status

Notes

1. Report Definition Process    Complete Specifications Final.

2. a. Effort Certification Batch Process Extract    Complete Specifications Final.

b. Effort Certification Batch Process Create    Complete Specifications Final.

3. a. Effort Certification Document    Complete Specifications Final.

b. Effort Certification Recreate    Complete Specifications Final.

4. Effort Certification Reports    Complete Specifications Final.

1. 2. 3. 4.

Effort Certification Process

• Process of generating Effort Reports

– Effort Certification Administrator logs into the system and instructs it to send out the Effort Certification Documents.

– This is the Effort Certification Batch Process– The time periods for certifications are defined by the

institution

– At this time, Labor Ledger Salary Transfers are locked for the period. Any changes must be made on the Effort Certifications that have just been sent.

– Effort Certifications are then either approved as-is, or can be changed.

Effort Certification Process (Cont.)

– If the Effort Certification is approved as-is, the accounting is unchanged and the report is complete.

– If the Effort Certification is changed and fully approved, a Salary Transfer Document is automatically generated by the system to change the affected accounts.

– These automatic Salary Transfers book to the last month of the reporting period

– After an Effort Certification is fully approved and completed, changes cannot be made for that period except in special circumstances.

– The Effort Certification Re-create Document is used for this

Relationship between Effort Reporting and Salary Adjustments in Labor Ledger

Window of using a Salary Transfer Document for adjustments

Effort Certification Documents sent. Cannot use a Salary Transfer to move salary. Must change the Effort Certification which will spawn an automatic Salary Transfer.

Effort Certification Document complete. Cannot make changes to salary via Salary Transfer or Effort Certification. Must contact administrator for an Effort Certification Re-create.

Effort Report Batch Process

Effort Report Fully Approved

Effort Certification Re-create

• Effort Certification Re-create Documents are used on an exception basis to generate a replacement Effort Report– To replace a previously certified Effort Report

– Previously certified periods are locked in Labor Ledger and Salary Transfers are not allowed

– Requires adequate justification to meet audit risk

• As of May 2008– Effort Certification coding complete– Now in full scale testing and bug fixes

– Enhancement Request Drafts • Route to PI• Identify Posting and Service Dates• Display Additional Pay• Time Paid vs. Gross Pay• Move Percents by Period

Current Project Status

Live Demonstration and ScreenshotsReport Definition Lookup

Report Earn Paygroup Lookup

Report Type Lookup

Effort Batch Extract

Outstanding Certifications by Chart/Org/Report

Effort Report(Simple Summary View)

Effort Report(Detail View)

Labor Ledger Effort Certification Balance View

• Example 0001693647 (FY05 – 2005M02 1/1/05 - 6/30/05)

Questions?

Functional Subject Matter Experts Team Contacts

• Wes Buchanan, Cornell• Julianna Douches, Michigan State• Robert Emborski, Cornell• Sterling George, Indiana• Cindy Jones, California• Brenda Mathias, California• Keiko Takahashi, Business Analyst, RSmart• Sharon Underwood, San Joaquin Delta• Mike Wong, Hawaii• Suzanne Zimbardo, Arizona

Thanks for Attending

Labor Distribution and

Effort Certification Session

Computer Lab Session5/14/08

9:30 AM – 10:30 AM

Labor Distribution and Effort Certification Modules Session Contacts

Sterling George, Indiana

sgeorge@indiana.edu

Marcel Villalobos, Arizona

marcel@email.arizona.edu

Suzanne Zimbardo, Arizona

zimbardo@arizona.edu