Payroll Encumbrances, Budgets, and Adjustments

The University encumbers anticipated Payroll expenses in the Labor Ledger for all permanent employees, and some students, at the discretion of departments.  An emloyee's full salary is encumbered at the beginning of a Fiscal Year and adjustments are posted throughout the year as appropriate.

The transactions described below are generated bi-weekly, normally Tuesday morning of a non-paycheck week by GENESYS batch jobs.

Payroll Encumbrances and Adjustments: 

The University encumbers salaries, fringe benefits, and workers' compensation at the beginning of a fiscal year or when an employee is first hired throughout the year. The first encumbrance cycle of a fiscal year produces encumbrances for all employees, including those paid from grants, since encumbrances are not carried over from one fiscal year to the next.  This practice results in more accurate tracking of Payroll encumbrances given the complexities of the encumbrance process.

Encumbrance adjustments result from the following processes within GENESYS: New employee hire, salary change, one time payments (longevity, hazardous duty, other special contractual payments, etc.).  Other situations such as employee funding source can also result in encumbrances adjustments.

Initial Encumbrances and adjustments are posted to the employee's source of funding by Account Number and Object Code within the Labor Ledger.

Payroll Budget Adjustments:

Budget adjustments are created and posted to the General Ledger in summary form by Account Number and Object Code. Since budget allocations for personal services are pre-approved at a central level, budget adjustments are created only for one time payments (longevity, hazardous duty, other special contractual payments, etc.).  These Budget adjustments are posted to the G/L as "Collector Flat Files".

Since GENESYS is hosted on the z/OS server (mainframe), multiple steps are required prior to processing the above transactions by KFS. These steps are:

1. Create the transactions via GENESYS batch jobs on the z/OS server,
   1.  Jobs are maintained by UITS-EAS-Mainframe Application Support.
2. Transfer the transactions to the KFS Batch Server. Note that both files must be on the server, for a successful completion of this job.
1. PRD-KFS-BudgetandEncumbFromGenesysToKFS-AFT
3. Run the KFS Labor Ledger and General Ledger batch jobs to process the transactions.
   1. Jobs are maintained by UITS-Financial Systems (KFS) and Controller-Finance Systems.

The server hosts and file locations for the encumbrance transactions are as follows:

 The file format for the Encumbrance and Budget transactions can be found by selecting this link.