Salary Encumbrance Processing (GM110)

Run Salary Encumbrance Processing (GM110) to create labor commitments for grant activities (in ) and general ledger accounts (in General Ledger).

Labor encumbrances are calculated on each employee's pro-rated annual salary, which are projected through the end date of each distribution. One or more commitments will be created per employee and pay period, depending on pay period end dates and or General Ledger period end dates.

To make sure that the salary encumbrances charged to a grant activity or general ledger account (department) are current, you should run Salary Encumbrance Processing (GM110) regularly.

Note: Lawson recommends, at the minimum, you run GM110 for all employees after a pay cycle. (For Lawson Payroll users, run GM110 after General Ledger Posting (PR198) has been successfully completed.)

Note: Running Salary Encumbrance Processing (GM110) clears any existing labor and fringe commitments prior to creating new commitments. To simply remove any outstanding labor and fringe commitments, you can run Salary Encumbrance Clearing (GM140).

Processing Effect

GM110 creates commitments in the (AC) and General Ledger (GL) commitment files. Each commitment is populated with the system code GM and source code LD (for labor commitments) or FR (for fringe commitments).

Note: Do not be confused by the source codes that GM110 uses. Because the source codes LD and FR only exist in commitments generated by GM110 and not actual posted transactions, the codes were not added to Source Code (GL05.1). The source code FR does not exist on GL05.1. LD does exist, but its description is "Lease Deferral Entry" and has nothing to do with Grant Management.

More Information

Use the Main page to determine the starting date for processing encumbrances, whether to calculate fringe, and whether to run salary encumbrance processing in update mode.
To process only the employees who had labor distribution status changes within a certain date range, select Yes in the Process Distribution Changes Only field and specify the date range.
Use the Employee page to identify the employees for whom salary encumbrances should be processed. To make sure that salary encumbrances are not calculated beyond the expected termination date for any employee with a pending personnel action for termination, you can identify an HR company and personnel action code for terminations.
Use the Other Options tab to choose to print a summary or detail report. The summary report presents total commitments created during the run, summarized to a single line by employee and activity/account category (for activity commitments) and employee and GL account (for General Ledger commitments). The detail report presents each commitment created. With both reports, an error exception report is generated to identify any problems in creating encumbrances.

Even though data selections are employee-based, the report output for activity commitments is presented by activity; the report output for General Ledger commitments is presented by GL account.