Examples: Affiliate Payroll Posting
Affiliate Employee Spends All Time on Grants
In this example, Adam Smith is an employee of Physician Affiliates, but spends 100 percent of his time and effort on grant-funded research for Metro Hospital. Metro Hospital defined an employee record for Adam Smith in a separate Human Resources company for Physician Affiliates. Metro Hospital also has two separate General Ledger companies, one for Metro Hospital and one for Physician Affiliates.
Metro Hospital created and approved a labor distribution template for Adam Smith. The template is used for salary encumbrance processing and labor distribution.
Labor Distribution Template (GM10.2) detail for Adam Smith
| Template field | Template Line 1 | Template Line 2 |
| Activity | Sleep Apnea | Sudden Cardiac Arrest |
| Account Category | Affiliate Labor | Affiliate Labor |
| GL Company | Metro Hospital | Metro Hospital |
| Accounting Unit | Cardio Research | Cardio Research |
| Account | Affiliate Salary Expense | Affiliate Salary Expense |
| Salary % | 60 % | 40 % |
| Effort % | 60 % | 40 % |
| Status | Approved | Approved |
At the end of every month, Metro Hospital imports gross earnings for Adam Smith. The next two tables show how Metro Hospital populates the payroll transaction import (GMDISTREL (Unix/Windows) or DBGMGDI (IBMi)) file, and the resulting distributions created during Non-Lawson Payroll Tran Import (GM500).
Payroll Transaction Import File
| GMDISTREL | Gross wage record | Clearing record |
| HR Company | Physician Affiliates | Physician Affiliates |
| Employee | Smith | <blank> |
| Record Type | 1 | 6 |
| GL Company | Physician Affiliates | Physician Affiliates |
| Accounting Unit | Research | Research |
| Account | Salaries | Salary Offset |
| Amount | $10,000 | ($10,000) |
| Activity | <blank> | <blank> |
| Account Category | <blank> | <blank> |
Resulting distributions created by Non-Lawson Payroll Tran Import (GM500)
| Transaction 1 | Transaction 2 | Transaction 3 | |
| HR Company | Physician Affiliates | Physician Affiliates | Physician Affiliates |
| Employee | Smith | Smith | <blank> |
| Record Type | 1 | 1 | 6 |
| GL Company | Metro Hospital | Metro Hospital | Physician Affiliates |
| Accounting Unit | Cardio Research | Cardio Research | Research |
| Account | Affiliate Salary Expense | Affiliate Salary Expense | Salary Offset |
| Activity | Sleep Apnea | Sudden Cardiac Arrest | <blank> |
| Account Category | Affiliate Labor | Affiliate Labor | <blank> |
| Amount | $6,000 | $4,000 | ($10,000) |
The distributions contain postings for both Metro Hospital and Physician Affiliates General Ledger companies. Metro Hospital defined these intercompany relationships in General Ledger to manage the postings:
Intercompany Relationships
| From Company | To Company | From Company Receivables | To Company Payables |
| Physician Affiliates | Metro Hospital | Due from Metro Hospital | Due to Physician Affiliates |
Note that the HR Company in the imported transaction (Physician Affiliates) aligns with the From Company (Physician Affiliates) on Intercompany Relationships (GL25.1). During Journal Posting (GL190), the following General Ledger transactions for Metro Hospital are created.
| Affiliate Salary Expense | Affiliate Fringe | |||
| Debit | Credit | Debit | Credit | |
|
$6,000 $4,000 |
||||
| Due to Physician Affiliates | Accounts Payable | |||
| Debit | Credit | Debit | Credit | |
| $10,000 | ||||
The following General Ledger transactions for the Physician Affiliates company are created.
| Due from Metro Hospital | Salary Offset | |||
|---|---|---|---|---|
| Debit | Credit | Debit | Credit | |
| $10,000 | $10,000 | |||
Burden Setup and Posting
Metro Hospital pays for Adam Smith's fringe at a rate. Metro Hospital set up burden codes, pools, and rates in Project Accounting to automatically charge fringe on affiliate employee pay charged to grants. The burden setup for affiliate fringe looks like this:
Metro Hospital Burden Setup for Affiliate Fringe
| Field | Value |
| Burden Code | AFFR (Affiliate Fringe) |
| Driver Type | 5 (Account Category) |
| Pool Driver Values | Account Category = Affiliate Labor |
| Post-to Account Category | Affiliate Fringe |
| Post-to GL Account | Affiliate Fringe |
| Offset GL Account | Due to Physician Affiliates |
| Burden Rate | 30 % |
When labor distribution transactions are posted during Activity Posting (AC190), affiliate fringe transactions are created automatically.
Fringe transactions for Adam Smith's labor distribution
| Transaction 1 | Transaction 2 | |
| HR Company | Physician Affiliates | Physician Affiliates |
| Employee | Smith | Smith |
| GL Company | Metro Hospital | Metro Hospital |
| Accounting Unit | Cardio Research | Cardio Research |
| Account | Affiliate Fringe | Affiliate Fringe |
| Activity | Sleep Apnea | Sudden Cardiac Arrest |
| Account Category | Affiliate Fringe | Affiliate Fringe |
| Amount | $1,800 | $1,200 |
When Journal Posting (GL190) is run, the following General Ledger transactions for Metro Hospital are created:
| Affiliate Salary Expense | Affiliate Fringe | |||
| Debit | Credit | Debit | Credit | |
|
$6,000 $4,000 |
$3,000 | |||
| Due to Physician Affiliates | Accounts Payable | |||
| Debit | Credit | Debit | Credit | |
|
$10,000 $3,000 |
||||
Journal Posting (GL190) does not generate intercompany transactions because burdens are generated only on labor transactions charged to Metro Hospital Grants.
Remitting Affiliate Pay
Physician Affiliates invoices Metro Hospital for Adam Smith's labor and fringe. Metro Hospital enters the invoice in Lawson Accounts Payable. Because the labor distribution has already been charged to the appropriate grant activities and accounts, the invoice is charged to Metro Hospital's Due to Physician Affiliates account during Invoice Entry (AP20.x). Accounts Payable automatically credits the Accounts Payable account when the invoice is posted.
| Affiliate Salary Expense | Affiliate Fringe | |||
| Debit | Credit | Debit | Credit | |
|
$6,000 $4,000 |
$3,000 | |||
| Due to Physician Affiliates | Accounts Payable | |||
| Debit | Credit | Debit | Credit | |
| $13,000 |
$10,000 $3,000 |
$13,000 | ||
Affiliate Employee Spends a Portion of Time on Grants
In this example, Jane Doe is an employee of Physician Affiliates who currently spends 50 percent of her time and effort on grant-funded research for Metro Hospital and 50 percent of her time and effort in her regular department for Physician Affiliates. Metro Hospital has defined an employee record for Jane Doe in a separate Human Resources company for Physician Affiliates. Metro Hospital also has two separate General Ledger companies, one for Metro Hospital and one for Physician Affiliates.
Metro Hospital created and approved a labor distribution template for Jane Doe. The template is used for salary encumbrance processing and labor distribution.
Labor Distribution Template (GL10.2) detail for Jane Doe
| Template field | Template Line 1 |
| Activity | Sleep Apnea |
| Account Category | Affiliate Labor |
| GL Company | Metro Hospital |
| Accounting Unit | Cardio Research |
| Account | Affiliate Salary Expense |
| Salary % | 50 % |
| Status | Approved |
At the end of every month, Metro Hospital imports gross earnings for Jane Doe. The next two tables show how Metro Hospital populates the payroll transaction import (GMDISTREL (Unix/Windows) or DBGMGDI (IBMi)) file, and the resulting distributions created during Non-Lawson Payroll Tran Import (GM500).
Payroll Transaction Import File
| GMDISTREL field | Gross wage record | Clearing record |
| HR Company | Physician Affiliates | Physician Affiliates |
| Employee | Doe | <blank> |
| Record Type | 1 | 6 |
| GL Company | Physician Affiliates | Physician Affiliates |
| Accounting Unit | Research | Research |
| Account | Salaries | Salary Offset |
| Amount | $10,000 | ($10,000) |
| Activity | <blank> | <blank> |
| Account Category | <blank> | <blank> |
Resulting distributions created by Non-Lawson Payroll Tran Import (GM500)
| Transaction 1 | Transaction 2 | Transaction 3 | |
| HR Company | Physician Affiliates | Physician Affiliates | Physician Affiliates |
| Employee | Doe | Doe | <blank> |
| Record Type | 1 | 1 | 6 |
| GL Company | Metro Hospital | Physician Affiliates | Physician Affiliates |
| Accounting Unit | Cardio Research | Research | Research |
| Account | Affiliate Salary Expense | Salaries | Salary Offset |
| Activity | Sleep Apnea | <blank> | <blank> |
| Account Category | Affiliate Labor | <blank> | <blank> |
| Amount | $5,000 | $5,000 | ($10,000) |
Because the template salary percentages total less than 100 percent, the remainder of Jane's pay is charged to the GL account from the imported record. In this case, the imported record for gross wages was populated with the Salaries account in the Physician Affiliates company.
The distributions contain postings for both Metro Hospital and Physician Affiliates General Ledger companies. Metro Hospital defined these intercompany relationships in General Ledger to manage the postings:
Intercompany Relationships
| From Company | To Company | From Company Receivables | To Company Payables |
| Physician Affiliates | Metro Hospital | Due from Metro Hospital | Due to Physician Affiliates |
Note that the HR Company in the imported transaction (Physician Affiliates) aligns with the From Company (Physician Affiliates) on Intercompany Relationships (GL25.1). During Journal Posting (GL190), the following General Ledger transactions for Metro Hospital are created.
| Affiliate Salary Expense | Affiliate Fringe | |||
| Debit | Credit | Debit | Credit | |
| $5,000 | ||||
| Due to Physician Affiliates | Accounts Payable | |||
| Debit | Credit | Debit | Credit | |
| $5,000 | ||||
The following General Ledger transactions for the Physician Affiliates company are created.
| Salaries | Salary Offset | Due from Metro Hospital | |||||
|---|---|---|---|---|---|---|---|
| Debit | Credit | Debit | Credit | Debit | Credit | ||
| $5,000 | $10,000 | $5,000 | |||||
Burden Setup and Posting
Metro Hospital pays for Jane Doe's fringe at a rate. Metro Hospital set up burden codes, pools, and rates in Project Accounting to automatically charge fringe on affiliate employee pay charged to grants. The burden setup for affiliate fringe looks like this:
Metro Hospital Burden Setup for Affiliate Fringe
| Field | Value |
| Burden Code | AFFR (Affiliate Fringe) |
| Driver Type | 5 (Account Category) |
| Pool Driver Values | Account Category = Affiliate Labor |
| Post-to Account Category | Affiliate Fringe |
| Post-to GL Account | Affiliate Fringe |
| Offset GL Account | Due to Physician Affiliates |
| Burden Rate | 30 % |
When labor distribution transactions are posted during Activity Posting (AC190), affiliate fringe transactions are created automatically.
Fringe transaction for Jane Doe's labor distribution
| Transaction 1 | |
| HR Company | Physician Affiliates |
| Employee | Doe |
| GL Company | Metro Hospital |
| Accounting Unit | Cardio Research |
| Account | Affiliate Fringe |
| Activity | Sleep Apnea |
| Account Category | Affiliate Fringe |
| Amount | $1,500 |
When Journal Posting (GL190) is run, the following General Ledger transactions for Metro Hospital are created:
| Affiliate Salary Expense | Affiliate Fringe | |||
| Debit | Credit | Debit | Credit | |
| $5,000 | $1,500 | |||
| Due to Physician Affiliates | Accounts Payable | |||
| Debit | Credit | Debit | Credit | |
|
$5,000 $1,500 |
||||
Journal Posting (GL190) does not generate intercompany transactions because burdens are generated only on labor transactions charged to Metro Hospital grants.
Remitting Affiliate Pay
Physician Affiliates invoices Metro Hospital for Jane Doe's labor and fringe. Metro Hospital enters the invoice in Lawson Accounts Payable. Because the labor distribution has already been charged to the appropriate grant activities and accounts, the invoice is charged to Metro Hospital's Due to Physician Affiliates account during Invoice Entry (AP20.1). Accounts Payable automatically credits the Accounts Payable account when the invoice is posted.
| Affiliate Salary Expense | Affiliate Fringe | |||
| Debit | Credit | Debit | Credit | |
| $5,000 | $1,500 | |||
| MH Clearing (Due to PA) | MH Accounts Payable | |||
| Debit | Credit | Debit | Credit | |
| $6,500 |
$5,000 $1,500 |
$6,500 | ||