FN - Nightly Encumbrance Process

GENERAL DESCRIPTION:

The University of Wisconsin calculates encumbrances using either the fiscal year encumbrances process (UW_ENCAN) or the nightly encumbrances process (UW_ENCNT). The fiscal year encumbrances process creates the baseline encumbrance data for the entire fiscal year; whereas the nightly encumbrances process reverses the original calculation and recalculates the encumbrance with the updated data. Specific changes will trigger a recalculation.

PROCESS CONSIDERATIONS:
  • Records that are going to be recalculated in the next nightly encumbrance calculation are identifiable in the Encumbrance Trigger (ENCUMB_TRIGGER) table. The following changes will initiate an encumbrance recalculation:
    • A position data change impacts the encumbrance calculation for the incumbents.
    • Department funding information is inserted, deleted, or corrected for an entity, and the changes affect the encumbrance calculation for all incumbents that belong to it and don't have appointment or position level funding assigned.
    • Any related funding changes that impact.
    • Checking or unchecking the Encumbrance Override indicator on the employee's Job Data record.
    • Changing the assigned encumbrance Session field on the employee's Job Data record.
    • Job data records are added, corrected, inserted, or deleted.
    • Encumbrance default information is inserted, deleted, or corrected for an entity on the Encumbrance Definition page and the changes affect the pre-encumbrance calculations for all entities that belong to it.
  • The Nightly Encumbrance process:
    • Estimates earnings from the run control specified date to the earlier of the end of the appointment or end of the fiscal year.
    • Uses funding information from the DEPT_BUDGET and DEPT_BUDGET_ERN Tables to determine funding sources for earnings.
    • Centralizes the encumbrance calculation, liquidation and reversals - whereas most triggers are from decentralized user driven events. In essence, encumbrances are now a centralized process that runs based on events triggered by a decentralized user group.
    • Is part of a batch process.
    • Is triggered by changes to the Job, Funding, Budgeting, Department or Position are calculated at night. As such, changes to a Job, Funding, Budgeting, Department or Position will only be reflected after a nightly calculation.
    • As more than 1 user likely has access to many of these employee characteristics, the encumbered value may change if another users makes a change to the Job, Funding, Budgeting, Department or Position.
  • Encumbrance Calculations are not uniform. Just as the underlying data points will vary from employee to employee, the calculation used to calculate the encumbrance will vary based on Employee Class and Compensation (Comp) Frequency.
    • Only Regular Pay is encumbered.
    • Liquidations are determined by Earnings Code Assigned.
    • Lump Sum, Additional Pay, Piece Work and other Non-Regular Pay Payments are NOT encumbered.
    • Employees working only during the academic year will encumber based on different begin and end dates at different campuses. These dates are defined in the employee's Job Data record, UW Custom tab, Encumbrances section.
    • Different employee classes will encumber based on different dates (See table below).


    Empl Class Session Comp Frequency Approx. Days
    University Staff (Classified Employees) CE H 364
    Faculty/Academic Staff/Limited Appointment (FA/AS/LI) (Unclassified) Employees FY M 365
    FA/AS/LI (Unclassified) Employees AY 9M 273




    Batch Processing Information

    Nightly Encumbrance Calculations are part of a Batch Process that is scheduled and run through Tivoli, a job scheduling software. This process should very rarely if at all be run ad hoc. The Nightly Finance Batch Job Stream includes additional jobs (UW_ENCNT, PAYGL03G and Journal Mods). These additional jobs have run controls that are date specific. As such, if the process is manually run, it cannot be run the same day as part of the scheduled batch job stream.

    The Nightly Finance Batch Job Stream, which includes encumbrances, will be run six nights per week. It will NOT run on Saturday nights. Nights where an additional Finance Batch Job Stream is run will also include the Nightly Finance Batch Job Stream.

    Exceptions:

    • Employees with a Pay Basis of Summer Session will NOT be encumbered
    • Employees with Empl Class of either SH (Student Hourly) or University Staff Temporary Employment (TE) (CL) are NOT encumbered
    • Employees with Pay Group of NON are NOT encumbered
    • Furloughs are NOT incorporated in the calculation or liquidation of an encumbrance
    • Not all Campuses / Divisions or Departments use encumbrances
      • UWOSH, UWEAU and various Divisions at different Business Units have opted not to encumber as of the "go-live" date of April 18, 2011.
    • RECOMMENDED: Employee Records where the FTE (full time equivalent) is less than .10 should have the Encumbrance Override indicator checked. When checked, the employee's earnings will NOT be encumbered. 
      Note: The Encumbrance Override indicator is located on the employee's Job Data record. (Menu navigation: Workforce Administration > Job Information > Job Data, select Job Information tab).

    A more detailed explanation of the various calculations and inputs is:

    A-Basis Employees

    A basis calculation

    Example: a .50 FTE A-Basis employee with a compensation rate of $9427.25 charged 75% to 101-030500-1 and 25% to 101-481505-2 would have encumbrance calculated as follows:

    A basis calculation

    A basis calculation

    • FTE (full time equivalent) can be found in Job Data>Job Information Tab>Standard hours section.
    • Comp Rate is found in Job Data>Compensation Tab or on the Funding Data Entry screen.
    • Count calendar days from date of calculation to end of fiscal year (ex, if calculating encumbrance effective 10/15/2014, there are 259 calendar days through 6/30/2015)

    C-Basis Employees

    C basis calculation

    Example: a .50 FTE C-Basis employee with a compensation rate of $5370.55 charged 75% to 101-030500-1 and 25% to 101-481505-2 would have encumbrance calculated as follows:

    C basis calculation

    C basis calculation

    • FTE (full time equivalent) can be found in Job Data>Job Information Tab>Standard hours section.
    • Comp Rate is found in Job Data>Compensation Tab or on the Funding Data Entry screen.
    • Count calendar days from date of calculation to end of the academic year. Ex, if calculating encumbrance effective 1/1/2015, there are 144 calendar days through the end of the academic year ending 5/24/2015 (academic end dates vary by campus)

    H-Basis Employees

    H basis calculation

    Example: An H-Basis employee with 32 standard hours and a compensation rate of $20.4350 charged 75% to 101-030500-1 and 25% to 101-4815505-2 would have encumbrance calculated as follows:

    H basis calculation

    H basis calculation

    • Standard Hours can be found in Job Data>Job Information Tab>Standard hours section.
    • Comp Rate is found in Job Data>Compensation Tab or on the Funding Data Entry screen.
    • Count calendar days from date of calculation to last day of the pay period being charged to current fiscal year. For Example, if calculating encumbrance effective 10/15/2014, there are 256 calendar days through the end of the last day of the pay period in fiscal year on 6/27/2015

    The Nightly Encumbrance process allocates transactions that are without funding sources or adequate funding to the suspense combination code. Review these transactions and specify a new combination code, if necessary. These are available on the Encumbrance Error Report - For Detail on Running This Report Please refer to FN - Earnings Encumbrance Messages Report .



    ADDITIONAL RESOURCES:

    Related KBs





    Keywords:Encumbrances, PAYGL03, PAYGL03G, Suspense Combination Codes, Triggers, Department Budget Actuals, PSPENNHT, PSPNANN, UW_ENCAN, EN_CNT, Encumbrance Override   Doc ID:17154
    Owner:Christine G.Group:Human Resource System (HRS)
    Created:2011-03-02 18:00 CSTUpdated:2017-02-22 14:27 CST
    Sites:Human Resource System (HRS)
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