Salary and fringe encumbrances
Salary encumbrances are commitments for labor that is not yet actual, or have yet to be incurred. You can encumber salaries on grant-funded projects to assist in planning expenditures over the life of the grant.
Encumbered salaries reduce the amount of available budget, which makes automatic budget edits more accurate. When you process labor distribution, the salary encumbrance for each project is reduced and the actual salary cost for the pay period is incurred. You can use this to accurately track encumbered salaries, actual salaries, and available budget at any point during the life of the project.
A fringe encumbrance rate is a percent that is used to calculate the fringe commitment that is based on an employee’s encumbered wages.
To create encumbrances for labor, you must create an assignment for a project employee for a specific date range. Include the committed effort percent and fringe burden code if applicable. The period planned distribution lines are adjusted as required. You can run salary encumbrance for an individual employee or for a group of employees.
Salary and fringe encumbrances are relieved when the labor distribution for a period is run.