What Happens When I Run Salary Encumbrance Processing (GM110)?
Salary Encumbrance Processing (GM110) uses labor distribution templates to create commitments for grant activities in Project Accounting and general ledger accounts in General Ledger.
A labor distribution template is eligible for salary encumbrance processing if it contains an employee who is subject to salary encumbrances (the Salary Encumbrance field on the employee record (HR11.3) is set to Yes).
Salary encumbrances are calculated on each employee's pro-rated annual salary, which is projected through the end date of each labor distribution line. One or more encumbrances are created per employee and pay period, depending on pay period end dates and Project Accounting or General Ledger end dates.
You can also use Salary Encumbrance Processing (GM110) to create fringe encumbrances.
To make sure that the salary (and optionally, fringe) encumbrances charged to grant activities or general ledger accounts (departments) are current, you should run Salary Encumbrance Processing (GM110) regularly. Running Salary Encumbrance Processing (GM110) clears any existing salary and fringe encumbrances before it creates the new commitments.
Example
Kelly is eligible for labor distribution and earns $72,800 per year. She is paid bi-weekly, and her earnings per pay period are $2,800. She is working on two grants during August and September. The following template has been defined for her on Labor Distribution Template Entry (GM10.2):
| Activity | Effective Date | End Date | Salary |
| Grant A | 08/15/03 | 09/30/03 | 50% |
| Grant B | 08/15/03 | 09/22/03 | 50% |
Salary Encumbrance Processing (GM110) compares Kelly's pay period schedule (from the assigned pay plan on the employee record HR11.1) to the activity calendar. Her organization uses a monthly Project Accounting calendar (separate period for each calendar month from January to December). The table below identifies the applicable activity period(s) for each pay period.
| Pay Period Start Date | Pay Period End Date | Project Accounting (AC) Period |
| 08/15/03 | 08/28/03 | August 2003 |
| 08/29/03 | 09/11/03 | August 2003 and September 2003 |
| 09/12/03 | 09/25/03 | September 2003 |
When Salary Encumbrance Processing (GM110) is run with an Encumbrance Start Date of 08/15/03, the following salary commitments are created:
| Pay Period Start Date | Pay Perod End Date | Grant | Commitment |
| 08/15/03 | 08/28/03 | A | $1,400 |
| 08/15/03 | 08/28/03 | B | $1,400 |
| 08/29/03 | 09/11/03 | A | $1,400 |
| 08/29/03 | 09/11/03 | B | $1,400 |
| 09/12/03 | 09/25/03 | A | $1,400 |
| 09/12/03 | 09/25/03 | B | $1,100 |
For the first two pay periods, the template lines split Kelly's $2,800 pay period earnings 50/50 (in other words, $1,400 for each grant). For the third pay period, grant A is still in effect for the full period (the end date is 09/30/03), but grant B is only effective for the first 11 days of the period (the end date is 09/22/03). For grant B, the $1,400 period wages are pro-rated at $100 per day and multiplied by the 11 days the grant is in effect (09/12/03 to 09/22/03) to get $1,100.