Processing Salary Encumbrances

Salary Encumbrance Processing (GM110) uses labor distribution templates to create commitments for grant activities in Project Accounting and general ledger accounts in General Ledger.

Note: Running Salary Encumbrance Processing (GM110) clears any existing labor and fringe commitments before it creates new commitments.

To create activity commitments during salary encumbrance processing, the Activity Commitments field must be set to Yes for system code GM on System Codes (GL01.4). If the field is No, commitments will not be created even if the activity group's payroll commitment override is set to yes.

If you want to create general ledger commitments, you must also choose Yes in the GL Commitments field.

Labor distribution lines must have an approved status to be eligible for salary encumbrance processing.

Note:  Salary Encumbrance Processing (GM110) should be run for all employees in a pay cycle after General Ledger Posting (PR198) has successfully completed.

To process salary encumbrances

  1. Access Salary Encumbrance Processing (GM110), Main tab.
  2. On the Main tab, use the following guidelines to enter field values.
    Encumbrance Start Date

    Type the starting date for calculating and creating encumbrances. Encumbrances process from this start date through the end date of each labor distribution line.

    Note: Use the pay period start date.
    Encumber Fringe

    Select whether to calculate and create fringe commitments.

    • No - Grant Management will not create fringe encumbrances.

    • Yes - Calculates and creates fringe encumbrances based on salary encumbrances and fringe information. GM110 uses the fringe encumbrance overrides rate, account category, and account on the labor distribution detail record (Labor Distribution Template Additional Information (GM10.3)). If these fields are blank, the GM110 uses the encumbrance fringe rate, account category, and account on the employee file (Grant Management (HR11.3)). The default is Yes.

    Note: If fringe rates are negotiated by grant, fringe encumbrance information should be entered for the grant activity or one of its parents on Activity (AC10.1), Award tab. When distribution lines are created on Labor Distribution Template Entry (GM10.2), any fringe encumbrance information from Activity (AC10.1) defaults in the labor distribution detail record in the Fringe Encumbrance Overrides fields on GM10.3. You can override the defaults, but if you do not change the fields, GM110 will use the activity fringe encumbrance information that defaults in from the activity.
    Update

    Select No to run the program in non-update mode and create a report only. Review the report to make sure you have selected the correct options and to check for errors prior to running in update mode.

    Select Yes to run the program in update mode (this creates commitment records and produces a report). Review the report to make sure you have selected the correct options and to check for errors.

    Process Distribution Changes Only

    Select No to process encumbrances for all selected employees. Select Yes to process encumbrances only for labor distribution records that have changed in the date range you define. The default is No.

    Dates

    If you select Yes in the Process Distribution Changes Only field, these dates are required. Type a date range. Employees with labor distribution records that were changed on dates that fall on or within this date range are eligible for salary encumbrance processing.

  3. On the Employee tab, use the following guidelines to enter field values.
    Company

    Type or select the Human Resources company of the employees to process.

    Process Level or Processing Group

    Type or select a process level to identify employees to process.

    - or -

    Type or select a processing group to identify employees to process.

    Employee Group or Employee Range

    Type or select an employee group to identify employees to process.

    - or -

    Type or select a range of employee numbers to identify employees to process.

    Personnel Action for Terminations

    Type or select up to three personnel action codes for terminations. If a termination action is found for an employee, Grant Management will not create encumbrances for that employee beyond the termination date specified in the pending personnel action record (regardless of the end date in the labor distribution record).

  4. On the Other Options tab, use the following guidelines to enter field values.
    Report Option

    Select Summary (S) to summarize commitments into one line per employee and activity/account category for activity commitments and into one line per employee and General Ledger account for general ledger commitments.

    Select Detail (D) to print each commitment, including employee and date. The default is Detail.

    AC Page Break

    Select how page breaks occur in reports containing activity commitments.

    • None (N) (Default)
    • Activity (A)
    • Activity Group (G)
    Note: Commitments display by activity, even though selections are based on employees.
    GL Page Break

    Select how page breaks occur in reports containing general ledger commitments.

    • None (N) (Default)
    • Accounting Unit (A)
    • Company (C)
    Note: Commitments display by General Ledger account, even though selections are based on employees.

Related Reports and Inquiries

To Use
Print a list of labor distribution records — by employee, activity, or general ledger account Labor Distribution Listing (GM210)
Print a list of labor distribution records that are about to expire Labor Distribution Expiration Report (GM410)
View the commitments created Commitment Detail Analysis (AC98.1) , Account Category Encumbrance Analysis (AC97.1), Commitment Analysis Summary (AC297), or Commitment Detail Report (AC298)
To print an exception report to compare approved GM10.2 detail records to the activity and general ledger setup and view any instances where the template data does not pass the edits. The report will only display the line items that are in error and will list the error(s). Approved Template Exceptions (GM211)