FN - Encumbrance Maintenance - Balance Not Correct or Doesn't Exist

GENERAL DESCRIPTION:

Research encumbrance that has not calculated, or when a user states balance is not correct. Note: Encumbrance balance variations are often a result of the user calculating the encumbrance using a formula different from the HRS formula.




PROCEDURE STEPS:

  1. Identify the Employee Name, Empl ID, Empl Record, full funding string and amount of current encumbrance.

  2. Log into WISDM, select the business unit, then note the WISDM encumbrance balance for the employee using the following navigation:  Main Menu > Payroll > Encumbrance Search; Enter Employee Name

  3. Log into HRS; navigate using Main Menu > Reporting Tools > Query > Query Manager.  Run the following private query:  UW_FI_ENCUMB_BYEMPLID.  This query provides the HRS encumbrance balance.  Compare the HRS encumbrance balance to the WISDM balance and confirm that the balances match.
    Note – HRS encumbrance balance should always agree to WISDM balance.  If they do not match, contact your Affinity Group.

  4. Obtain the following information from Job Data and Budget Funding Data Entry, using the following HRS navigation paths:
    • Workforce Administration > Job Data
      • FTE:  Job Information tab, Standard Hours section
      • Pay Basis: Job Information tab, Job Information section
      • Compensation Rate: Compensation tab, Compensation section
    • Set Up HCM > Product Related > Commitment Accounting > Budget Information > Budget Funding Data Entry
      • Review funding string for calculated encumbrance
      • Efficiency hint:  save funding search criteria, including Business Unit – e.g. UWMSN, Fiscal Year – 20XX, Empl ID – 00000000, and Funding Level – Appointment, then click “Save Search Criteria”.  Enter (or paste) the Empl ID of employee being researched over the existing saved Empl ID to quickly retrieve existing funding:


    https://kb.wisc.edu/images/group61/60717/9.2fundingdataentrypage.jpg

  5. If an encumbrance balance does not exist:
    • Confirm “Encumbrance Override” box is not checked in Job Data > Job Information tab > Standard Hours section.  If checked, contact the appropriate Affinity Group and request that the Encumbrance Override box be unchecked.  Encumbrance will calculate after check is removed. 
    • Confirm “Standard Hours” >= 4 hours in Job Data > Job Information tab > Standard Hours section.  Note: HRS will not encumber for less than 4 hours.  This cannot be overridden (see KB 16729).
    • Confirm Encumbrance Section information exists in Job Data > UW Custom tab
    • If Encumbrance Override checkbox was recently unchecked and encumbrances still have not calculated after a few business days
      • Enter a new funding row on the Budget Funding Data Entry page, using the same Effective Date and funding source as the most recent entry.
      • Check WISDM after 1-2 business days to see if balance has been added and it is correct.

  6. If encumbrance balance is incorrect (see formulas below):
    • Enter a new funding row on the Budget Funding Data Entry page, using the same Effective Date and funding source as the most recent entry.
    • Check WISDM after 1-2 business days to see if balance has been added and it is correct.

NOTE: See Appendices A – D for encumbrance calculation formulas.

Before calculating the encumbrance, determine how many calendar days remain to be paid in the current fiscal year for that paygroup.  Start counting the number of calendar days remaining in the fiscal year from the day after the most recent pay period end date.  This is found in HRS on the “Review Paycheck” page, using the following navigation path: Payroll for North America > Payroll Processing USA > Produce Payroll > Review Paycheck.  Enter Empl ID and click on the most recent paycheck.

Review Paycheck

  • A-Basis employees always use an end date of 6/30.  In the above A-Basis employee example, there would be 212 days remaining in the fiscal year (31-Dec. + 31-Jan. + 28-Feb. + 31-Mar. + 30-Apr. + 31-May + 30-June) = 212.  There are a total of 365 days in an A-Basis year.
  • C-Basis employees end date will vary by campus and year; ranging from approximately May 17 through June 5.  Academic year calendars for all campuses:  https://uwservice.wisc.edu/calendars-schedules/academic-payroll/  Click on the campus and year; scroll to the bottom of the page and note the last day in the bottom row of dates for that campus’ end date.  There are a total of 273 days in a C-Basis year.
  • H-Basis employees end date will vary by fiscal year and in most years will include 52 weeks (364 days) from the start date of the first day charged to the fiscal year.  The end date will vary from approximately 6/24 – 7/6.  Payroll calendar:  https://uwservice.wisc.edu/calendars-schedules/  The end date for fiscal year 2015 is 6/27/2015.  There are a total of 364 days in an H-Basis year.

Appendix A - Encumbrance Calculation Formula for A-Basis (monthly) employees:

a-basis calculation

Example:  A .50 FTE A-Basis employee with a monthly compensation rate of $9,427.25 charged 75% to 101-030500-1 and 25% to 101-481505-2 with 259 remaining calendar days would calculate encumbrance as:
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; e.g., if calculating encumbrance effective 10/15/20XX, there are 259 calendar days through 6/30/20XX.


Appendix B - Encumbrance Calculation Formula for C-Basis (academic) employees:

c-basis calculation

Example:  A .50 FTE C-Basis employee with a monthly compensation rate of $5,370.55 charged 75% to 101-030500-1 and 25% to 101-481505-2 with 144 remaining calendar days would calculate encumbrance as:

c-basis calculation              c-basis calculation

FTE (full time equivalent) can be found in Job Data, Job Information Tab, Standard Hours section or on the Funding Data Entry screen. 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; e.g., if calculating encumbrance effective 1/1/20XX, there are 144 calendar days through the end of the academic year ending on 5/24/20XX (academic end dates vary by campus).


Appendix C - Encumbrance Calculation Formula for H-Basis (hourly) employees:

h-basis calculation

Example:  An H-Basis employee with 32 standard hours and an hourly compensation rate of $20.4350 charged 75% to 101-030500-1 and 25% to 101-481505-2 with 257 remaining calendar days would calculate encumbrance as:

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 10/15/20XX, there are 257 calendar days through the end of the last day of the pay period in fiscal year on 6/28/20XX.


Appendix D - HRS encumbrance calculation formulas vs. user expectations.  HRS calculates encumbrances using a formula different from most user’s expectations, which may be addressed as Service Center resources become available.  See the following example:
Example:  A 1.00 FTE A-Basis employee with a monthly compensation rate of $5,000.00 charged 100% to UWSYS-136-601000-1 would have encumbrance calculated as follows as of 7/31:
HRS Balance - {[1.00 FTE X ( ($5,000.00 *12)/365 )] x 334} x 100% Funding = $54,904.11

Actual Balance - At the end of July, the employee was only paid $5,000.00, resulting in an encumbrance balance of $55,000 ($60,000 annual encumbrance - $5,000 of actual pay).

Difference between Actual ($55,000.00) and HRS ($54,904.11) balances = $95.89.  Throughout the year, the difference between Actual and HRS will change based on the number of days remaining (instead of months remaining).


ADDITIONAL RESOURCES:

Related Links:



Keywords:Finance; encumbrances   Doc ID:60717
Owner:Tami E.Group:Human Resource System (HRS)
Created:2016-02-11 15:52 CSTUpdated:2017-09-22 11:19 CST
Sites:Human Resource System (HRS)
Feedback:  0   0