How are salary encumbrance variances calculated?

Salary budget variance can be viewed and calculated in several Infor/Infor Lawson applications:

  • Lawson Project Accounting (AC) budgets

    If you use AC budgets, Account Category Analysis (AC95.1) displays variance for a specified activity.

  • Lawson General Ledger (GL) budgets

    If you use GL budgets, Commitment Analysis (GL94.1) displays variance for a specified accounting unit and/or account. Salary budget encumbrances (commitments) are written out to GL on the date you type in the Fiscal Year End field of Salary Encumbrance (PA182). They are not written out to GL for each period through the end of the fiscal year end.

    The Budget Edit Date Range field on Company (GL10.1) controls how data displays on GL94.1.

    If you select Period Budget on GL10.1, GL94.1 displays budget, actuals, commitments for the selected period. Therefore, unless the selected period is the last of the fiscal year, no salary commitments will display.

    If you select Year-to-Date GL94.1 displays the budget, actuals, and commitments through the selected period. Therefore, unless the selected period is the last of the fiscal year, no salary commitments will display.

    If you select Annual, GL94.1 displays the budget, actuals, and commitments for the entire year. Therefore, salary commitments will display.

  • Infor Human Resources (HR) budgets

    If you budget salary amounts by count category (for example, Position; or Process Level:Job; or Process Level:Department:Job), then PA82.1 displays the variance for the following count categories:

    If category field is Then variance is calculated for
    Position Class All positions in that class
    Position Exact match
    Process Level:Job Exact match
    Process Level:Dept:Job Exact match
    Process Level Roll up of deptments/jobs (not positions) in the process level
    Process Level:Dept Roll up of departments (not positions) in the process level

    Salary Encumbrance Inquiry (PA82.1) results are based on the following:

    • The budgeted salary as entered in Position Budget (PA70.1) or Job Budget (PA71.1).

      The budget in effect as of the date you type in the Fiscal Year End field of PA82.1.

    • Payroll actuals from Payroll distribution detail records.

      PA82.1 parameters can limit the records to those in a specific pay class or pay summary group.

    • The encumbrance amounts Salary Encumbrance Update (PA182).

    • The variance = budget – actuals – encumbered.

      The variance calculation assumes all amounts are in the same currency.