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

GENERAL DESCRIPTION:

This document shows how to research and manually calculate encumbrances. Note: Encumbrance balance variations are often a result of the user calculating the encumbrance using a formula different from the HRS formula.

PROCESS CONSIDERATIONS:
  • Employees on an unpaid Leave of Absence (LOA) are encumbered; the encumbrance will not liquidate while on LOA, but balances will recalculate upon the employees return from LOA in Job Data.

  • The encumbrance process does not recognize an employees Expected Job End Date (EJED) entered in Job Data; however, the resulting/eventual Job Data termination row will trigger an encumbrance recalculation.

  • If an employee termination is entered in Job Data retroactively, the encumbrance balance should zero out as expected. If the termination is future dated, the termination entry will trigger an encumbrance recalculation that will be liquidated by the employee's final paycheck(s); in this scenario, there is a possibility of a small amount still encumbered after the final paycheck liquidation. To zero out, see FN - Simple Encumbrance Maintenance - Close out .

  • An employee with an FTE less than 0.10 (Standard Hours less than 4.0) will not encumber, resulting in the "Encumbrance Override” box automatically being checked in Job Data > Job Information tab > Standard Hours section.

    • If an employee experiences an FTE change in Job Data to 0.10 FTE or above, encumbrance calculations will not resume until the beginning of the next fiscal year for that Empl Rcd.

  • Summer Session (Pay Group begins with "S") and Summer Service (Pay Group begins with "V") do not encumber in HRS.

    • For UWMSN Summer Session and Summer Service only, encumbrance balances are created in SFS/WISDM, but are not tied to HRS.

    • Questions regarding UWMSN Summer Session and Summer Service encumbrance balances in WISDM should be directed to uwsaproblemsolvers@uwsa.edu


PROCEDURE STEPS:

A. Review and Compare Encumbrance Balances

1. Identify the Employee Name, Empl ID, Empl Record and full funding string to review.
2. Log into WISDM and select your Business Unit
  • Navigate to: Main Menu > Payroll > Encumbrance Search
  • Search for the Employee Name or Empl ID, and Empl Record
  • Note the encumbrance balance
3. Log into HRS
  • Navigate to: Main Menu > Reporting Tools > Query > Query Manager or Viewer
  • Search for and run the following public query:  UW_FI_ENCUMB_BYEMPLID
    •  This query provides the HRS encumbrance balance
4. 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.
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B. Encumbrance Balance Does Not Exist or Incorrect

1. Confirm Encumbrance Section information exists
  • Job Data > UW Custom tab
2. Confirm “Standard Hours” >= 4.0 hours and/or "FTE" >= 0.10
  • Job Data > Job Information tab > Standard Hours section
  • Note: HRS will not encumber for less than 4 Standard Hours and 0.10 FTE
3. Confirm “Encumbrance Override” box is not checked
  • 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 recalculate in WISDM 1-2 business days after check is removed.
  • Note: If Standard Hours are less than 4.0, the Encumbrance Override box is automatically checked and cannot be unchecked.
4. If everything above looks okay, enter a new funding row using the same Effective Date and funding source as the most recent entry.
  • Set Up HCM > Product Related > Commitment Accounting > Budget Information > Budget Funding Data Entry
  • Check WISDM after 1-2 business days to see if balance has been created or corrected.
    • If the balance is not created or corrected, contact the appropriate Affinity Group for review.
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C. How to Manually Calculate Encumbrances

1. 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
  • Accessible from the Finance WorkCenter found at Payroll for North America>Payroll Distribution>Commitment Accounting USA>UW Finance WorkCenter. For more information about the WorkCenter, see KB PD - WorkCenter .
      • Review funding string
2. Determine how many calendar days remain to be paid in the current fiscal year for the employees Pay Group.
  • 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, searching for Empl ID and selecting the most recent paycheck.

  • Payroll for North America > Payroll Processing USA > Produce Payroll > Review Paycheck
  • Accessible from the Finance WorkCenter found at Payroll for North America>Payroll Distribution>Commitment Accounting USA>UW Finance WorkCenter. For more information about the WorkCenter, see KB PD - WorkCenter .
Review Paycheck
  • A-Basis end date is always June 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 end dates vary by institution and year, ranging from approximately May 17 through June 5.
      • Academic year calendars for all institutions can be found here:  https://uwservice.wisc.edu/calendars-schedules/academic-payroll/; click on the institution and year; scroll to the bottom of the page and note the last day in the bottom row of dates for that institutions end date. 
      • There are a total of 273 days in a C-Basis year.
  • H-Basis end dates will vary by fiscal year, ranging from approximately June 24 through July 6.
3. 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
    Note: for Calendar Days Remaining in FY, if calculating encumbrance effective 10/15/20XX, there are 259 calendar days through 6/30/20XX.
    4. 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
    Note: for Calendar Days Remaining in FY, 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 institution).
    5. 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

    Note: for Calendar Days Remaining in FY, 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.
    6. 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.

    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).
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    ADDITIONAL RESOURCES

    Related KB's:
    Related Links:



    Keywords:Finance; encumbrances   Doc ID:60717
    Owner:Tami E.Group:Human Resource System (HRS)
    Created:2016-02-11 16:52 CDTUpdated:2018-09-10 12:42 CDT
    Sites:Human Resource System (HRS)
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