Defining Labor Distribution Templates

Labor distribution records are templates that identify where an employee's salary is charged. Lines on the template indicate percentages to be charged to grant activities that the employee works on and also specific general ledger accounts (departments) where the employee works.

Labor distribution templates are used to:

Encumber earnings during Salary Encumbrance Processing (GM110). This routine projects earnings and creates salary encumbrances (commitments) for grants in Project Accounting, and optionally in General Ledger.
Drive payroll distribution transactions in Project Accounting and General Ledger postings during the payroll closing cycle. This occurs during Payroll Close (PR197) or Non-Lawson Payroll Tran Import (GM500).
Create effort distributions during the payroll closing cycle. These transactions are used in effort reporting to calculate effort percentages for each employee and effort reporting period.

For grants that require salary caps, the labor distribution template can be used to automatically cap the salary percentage assigned to a grant when the calculated salary exceeds the salary cap defined for the grant on Activity (AC10.1). The system checks for salary cap violations when distribution lines are added to the template as well as when the template lines are reviewed for approval, so that the corrections can be made before the payroll encumbrances and distributions are processed.

To define a labor distribution template

Access Labor Distribution Template Entry (GM10.2).

Note: You can access Labor Distribution Template Entry (GM10.2) directly and choose an employee, or you can use Labor Distribution Template Filter (GM10.1) to view multiple existing records. Enter information on the filter fields at the top of the form to narrow the number of records that display. On GM10.1, locate the employee line you want to edit and click the Det button next to the record.
Define the information for the labor distribution. Use the following guidelines to enter field values.
HR Company

Select the employee's Human Resources company.

Employee

Select an employee. The employee must be eligible for labor distribution.

Job Code or Position

Select a job code for the labor distribution template. If you leave the field blank, the template is valid for any job code. You cannot enter a job code if the Position field is populated.

- or -

Select a position for the labor distribution template. If you leave the field blank, the template is valid for any position. If the Job Code field is populated, you cannot enter a position.

Note: The position must be in effect for the entire period covered by the distribution record.

Pay Code

Select a pay code for the labor distribution template. If you leave the field blank, the template is valid for any pay code.

Effective
Type the effective date for the labor distribution template.
- For salary encumbrance processing, the effective date determines when salary encumbrances begin, irrespective of the employee's hire or adjusted hire dates.
  
  Note: If possible, the effective date should align with the start date of a pay period, but if it does not, encumbrances are calculated from the beginning date of the pay period in which the start date falls.
- For labor distribution processing, a template can be applied to a time record if the time record’s date is on or later than the template’s effective date. If the template has a job code, position or pay code, the time record’s job code, position or pay code must match. The template with the newest effective date with respect to the time record is used.
Encumbrance Default

Select Yes to use this distribution record for salary encumbrances.

Select No if this is not the record to use for salary encumbrances.

When you have multiple labor distribution templates for the same employee and effective date, this field determines which template to use for salary encumbrance processing.

Note: Grant Management allows only one Yes response per employee and effective date.

Encumbrance Status
This field indicates the labor distribution status for salary encumbrance processing. Only Approved templates are eligible. Valid values are:
- Blank = Not approved
- 1 = Auto approval
- 2 = User approval
Blank (all lines not approved) is the default status for all new records. The field cannot be changed to blank; this is a system-assigned status.

1 (all lines approved) is automatically assigned by GM11.1 or GM115 when all labor distribution lines have a status of Approved. The field cannot be changed to 1; this is a system-assigned status.

2 (user approval) can be assigned on GM10.2 and indicates that the labor distribution template should be considered for encumbrance processing, even if not all of its lines are approved. Once this field is set to 2 in a given record, the system will not change it.

Salary Encumbrances Processing (GM110) uses this field to select template records to use for salary encumbrances. If the field is blank, the entire labor distribution template is ignored. If the Encumbrance Status is 1 or 2, then the labor distribution template is used for salary encumbrance processing.
Activity

Type or select the posting activity for the distribution. This is the grant activity to which a portion of the salary should be encumbered and distributed.

Note: Distribution lines associated with grant activities that have salary cap enabled will be checked for salary cap violations.

Cat

Type or select a valid account category for the posting level activity. This must be a detail level account category. If you do not select an account category, the default account category from Activity (AC10.1) is used.

Co

Type or select the General Ledger company for commitments and labor distribution. If you selected an activity and you do not select a company, the default company from Activity (AC10.1) is used.

Account

Type or select the General ledger accounting unit and account for commitments and labor distribution.

If you selected an activity and you do not select an accounting unit or account the default accounting unit and account from Activity (AC10.1) is used.

End Date

Type the end date for the labor distribution line. Encumbrances and labor distribution for active employees will not occur beyond the end date.

If you selected an activity, this field defaults with the activity end date or a period of performance end date for system code GM.

If you selected a General Ledger account only, you must enter an end date. Make sure the date is not greater than the General Ledger company's next fiscal year-end date.

Salary Percentage

Type the percentage of salary to be charged to the activity and general ledger account for encumbrance processing and labor distribution. You cannot enter a negative percentage. The salary percentage can be zero if the employee has a planned effort percentage.

Note: If you entered a grant activity subject to salary cap, a salary percentage is needed for salary cap calculations.

Effort Percentage

Type the planned effort percentage to identify how much effort you expect the employee to expend on a sponsored activity or general ledger account.

Note: Do not enter planned effort in a cost share distribution line. The salary percentages for a sponsored activity and its associated cost share generally equal the planned effort for the sponsored activity.

Planned effort percentages are visible in effort reporting. Tracking planned effort is optional.

In order to enter a planned effort percentage, the employee must be subject to effort reporting. An employee’s eligibility for effort reporting is determined in the employee record on Grant Management (HR11.3).

You cannot enter a negative percentage. The planned effort percentage can be zero if the employee has a salary percentage.

Status

This field displays the status of the labor distribution line. Valid values are: A = Approved, U = Unreleased, R = Released, H= Hold
To access Labor Distribution Template Additional Information (GM10.3), click the More button next to each line. Use this form to view estimated salary information for the detail line. You can also enter fringe encumbrance override information and optional user analysis values for the distribution.

If you enter the fringe override information, use the following guidelines to enter field values.

Calculate

Select whether the distribution line is subject to fringe calculation during Salary Encumbrance Processing (GM110). If you select No, no fringe is calculated on labor encumbrance.

Rate

The fringe rate is used by Salary Encumbrance Processing (GM110) to create commitments for fringe amounts.

If there is a fringe rate on the grant (on Activity (AC10.1)), the rate from the activity will default into this field. You can override the default by typing a different fringe rate. If this field is blank, GM110 uses encumbrance fringe rate on the employee file (Grant Management (HR11.3)).

Account Category

The account category is used by Salary Encumbrance Processing (GM110) to create commitments for fringe amounts.

If there is a post-to fringe account category on the grant (on Activity (AC10.1)), the account category from the activity will default into this field. You can override the default by typing a different account category. If this field is blank, GM110 uses the fringe account category on the employee file (Grant Management (HR11.3)).

Account

The account/subaccount is used by Salary Encumbrance Processing (GM110) to create commitments for fringe amounts.

If there is a post-to fringe account/subaccount on the grant (on Activity (AC10.1)), the account/subaccount from the activity will default into this field. You can override the default by typing a different fringe account/subaccount. If this field is blank, GM110 uses the fringe account/subaccount on the employee file (Grant Management (HR11.3)).
Select the Add form action to add the template.

If any of the distribution lines associated with grant activities that have salary cap enabled exceed the salary cap, a warning appears for that line.
If any salary cap warnings exist, execute the Salary Cap form action.
For each line that is in violation, the system:
- Caps the salary percentage at the allowable level.
- Creates an additional distribution line that holds the overage salary percentage. The activity, account category, GL account, and/or user analysis values on the overage line are defaulted as follows:
  
  Activity
  
  If the overage activity is defined on AC10.1, the overage activity defaults to the overage line.
  
  If it is not defined on AC10.1, the overage is not charged to any activity or account category.
  
  Account category
  
  If the overage account category is defined on AC10.1 (along with the activity), the overage account category defaults to the overage line.
  
  If the overage activity is defined on AC10.1 but the overage account category is not defined, the overage line uses the account category from the originating distribution line.
  
  GL account
  
  If the overage GL account (company, accounting unit, account and/or subaccount) is defined on AC10.1, it defaults to the overage line.
  
  If the overage GL account is not defined on AC10.1, the overage line uses the GL account from the originating line.
  
  User analysis
  
  User analyses are used only if your organization uses Strategic Ledger.
  
  If the overage user analysis values are defined on AC10.1, the overage user analysis values default to the overage line.
  
  If the overage user analysis values are not defined on AC10.1, the overage line uses the user analysis values from the originating line.
If you applied a salary cap, select the Cap button to access Labor Distribution Template Salary Cap (GM10.5) and view salary cap calculation detail.
When you have added the template, release the template lines so they can be approved. (In the FC field for each line, select Release (R) and select the Change form action or select the release form action to release all lines.)

Related Reports and Inquiries


To	Use
Print a list of labor distribution records. You can view the report by employee, activity, or General Ledger account.	Labor Distribution Listing (GM210)
Create a report that identifies labor distribution records that are about to expire according to their end dates for the most recent template. You can view the report by employee or activity.	Labor Distribution Expiration Report (GM410)
Print an exception report to compare approved GM10.2 detail records to the activity and general ledger setup and to 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 errors.	Approved Template Exceptions (GM211)
Create a report to evaluate and update salary Cap on unreleased template lines for GM10.2 and GM12.2. The report will only show the line items that are changed or added.	Salary Cap Mass Calculation (GM116)