Kuali Days Conference 11/13/2007 Labor Distribution Module Sterling George, Indiana University Marcel Villalobos, University of Arizona Suzanne Zimbardo, University of Arizona

Labor Distribution Module Agenda Topics Labor Distribution – Release 2.0 / Release 3.0 Labor Distribution Overview Demonstration Effort Certification

Labor Distribution Module Release 2.0 Processes –Labor Ledger Scrubber –Labor Ledger Poster –Labor Ledger Year End – Creation of Inception to Date Beginning Balances e-Docs –Salary Expense Transfer (ST) –Benefit Expense Transfer (BT) –Labor Ledger Correction Process (LLCP) –Labor Ledger Journal Voucher (LLJV)

Labor Distribution Module Release 2.0 –Year End Salary Expense Transfer (YEST) –Year End Benefit Expense Transfer (YEBT) Balance Inquiries –Account Status (Base Funds) –Account Status (Current Funds) –Calculated Salary Foundation –Employee Funding –July 1 Position Funding –Labor Ledger View –Labor Ledger Pending Entry –Position Inquiry

Labor Distribution Module Release 2.0 Ledger Tables –Labor Ledger Detail –Labor Ledger Balance Maintenance Tables –Labor Benefits Calculation –Labor Benefits Type –Labor Object Code –Labor Object Code Benefits –Labor Position Object Group Labor Reports –Labor Account Transactions

Labor Distribution Module Release 3.0 Processes –Effort Certification Automated Report Period Update Process –Effort Certification Batch Process –Effort Certification eDoc Create Process –Payroll Accrual Program e-Docs –Effort Certification –Effort Certification Re-Create

Labor Distribution Module Release 3.0 Inquiries –Outstanding Effort Certification Forms by Organization –Outstanding Effort Certification Forms Maintenance Tables –Effort Certification Automated Report Period Definition –Effort Certification Report Period Definition –Effort Certification Report Period –Effort Certification Report Type –Effort Certification Report Period Status

Kuali Accounting Cycle Diagram

Labor Distribution – General Labor ledger contains detail salary and wage by person, position, type of pay, and pay period – benefits are aggregated by accounting string Payroll encumbrances recorded in labor ledger as internal encumbrances – updated with each payroll closing Two views of Labor – (AC) based on time of posting or (A2) when effort occurred Accounts Not Accepting Fringes must Identify an Account that can accept Fringes Sub Funds can be set up to Not Accept Wages Document Types can be established for Payroll Types – Normal Pay (PAY), Payroll Cancellations (PAYC), Payroll Accruals (PAYA), etc… Entries processed by the labor poster are aggregated and feed the general ledger When Labor transactions reach the GL, offsets are specified by Document Type – i.e., PAYC to hit Cash directly, PAY to run through Salaries Payable, etc…

Labor Distribution – Maintenance Tables Payroll Object Codes report to Levels which report to Consolidations –2000 Academic Salaries -> Academic Salaries (ACSA) -> Compensation (CMPN) –2500 Clerical Professional -> Bi-Weekly Salaries (BISA) -> Compensation (CMPN) –3000 Non-Student Hourly -> Hourly Compensation (HRCO) -> Compensation (CMPN) –5625 Fringe Benefits –> Benefits (BENF) -> Compensation (CMPN) Payroll Object Codes are assigned Benefit Types –2000 Academic Salaries has Benefits Types of FICA (F), Fringe Benefits (G), and Retirement Exempt (R) Benefit Types are assigned Percentages and Object Codes each Fiscal Year –FICA (F) – 7.07% on Object Code 5760 –Fringe Benefits (G) – 12.74% on Object Code 5625 –Retirement Exempt (R) – 18.74% on Object Code 5772

View Kuali Labor Distribution E-Docs Balance Inquiries Processes

Labor Distribution – Enhancement Requests Labor Ledger Details by Pay Period and possibly Earn Code for ST and BT Additional Data Elements in Detail Labor Ledger Error Certification on Salary Transfer Fringe Benefit Re-Distribution Benefit Transfer by Person Flat Rate Fringe Benefit by Account

Labor Distribution – Enhancement Requests (Cont.) Enhancements to Effort Certification –Route to PI –Identify Posting and Service Dates –Display Additional Pay –Time Paid vs. Gross Pay –Move Percents by Period

Questions?

Effort Certification Scheduled for Kuali Release 3.0 Kuali Days Conference 11/13/2007

Effort Certification Overview KFS Effort Reporting system is fully integrated with the KFS Labor Ledger Creates routable Effort Report electronic documents based on Labor Ledger data Reporting periods can be customized by institution Reports can be approved as generated, or with changes. Changes create automatic payroll transfers in the Labor Ledger

Effort Certification Process Process of generating Effort Reports 1.Effort Certification Administrator logs into the system and instructs it to send out the Effort Certification Documents. –This is the Effort Certification Batch Process –The time periods for certifications are defined by the institution 2.At this time, Labor Ledger Salary Transfers are locked for the period. Any changes must be made on the Effort Certifications that have just been sent. 3.Effort Certifications are then either approved as-is, or can be changed.

Effort Certification Process (Cont.) 4.If the Effort Certification is approved as-is, the accounting is unchanged and the report is complete. 5.If the Effort Certification is changed and fully approved, a Salary Transfer Document is automatically generated by the system to change the affected accounts. –These automatic Salary Transfers book to the last month of the reporting period 6.After an Effort Certification is fully approved and completed, changes cannot be made for that period except in special circumstances. –The Effort Certification Re-create Document is used for this

Relationship between Effort Reporting and Salary Adjustments in Labor Ledger Window of using a Salary Transfer Document for adjustments Effort Certification Documents sent. Cannot use a Salary Transfer to move salary. Must change the Effort Certification which will spawn an automatic Salary Transfer. Effort Certification Document complete. Cannot make changes to salary via Salary Transfer or Effort Certification. Must contact administrator for an Effort Certification Re-create. Effort Report Batch Process Effort Report Fully Approved

Effort Certification Re-create Effort Certification Re-create Documents are used on an exception basis to generate a replacement Effort Report –To replace a previously certified Effort Report –Previously certified periods are locked in Labor Ledger and Salary Transfers are not allowed –Requires adequate justification to meet audit risk

Effort Certification Re-create - Request Special request received for Re- creates –Through the CGA21RECRE Workgroup –Verify no existing “Unapproved” report –Justification Letter

As of October 2007 –Functional Specification Draft Documents Report Period Update Process Batch Process –Enhancement Request Drafts Route to PI Identify Posting and Service Dates Display Additional Pay Time Paid vs. Gross Pay Move Percents by Period Current Project Status

FIS Screenshots Represents functionality, not the look and feel Will have the same format and feel as Labor Ledger and other KFS modules

Labor Ledger Effort Certification Balance View Example (FY05 – 2005M02 1/1/05 - 6/30/05)

Report Period Definition Table

Effort Report

Effort Report Notes

Questions

Labor Distribution Module Progress Functional Subject Matter Experts (SME) Team Kickoff in March 2006 Release of Phase 2 November 2007 Functional Specification Written for all Phase 2 Processes, E-Docs, Maintenance Tables, and Inquiries October 2006 Testing February 2007 – November 2007 Estimated Release Effort Certification, Kuali Phase 3.0, June 2008

Functional Subject Matter Experts Team Contacts Wes Buchanan, Cornell Julianna Douches, Michigan State Robert Emborski, Cornell Sterling George, Indiana Cindy Jones, California Brenda Mathias, California Keiko Takahashi, Business Analyst, RSmart Sharon Underwood, San Joaquin Delta Mike Wong, Hawaii Suzanne Zimbardo, Arizona

Thanks for Attending Labor Distribution

Labor Distribution Module Workshop Contacts Sterling George, Indiana Marcel Villalobos, Arizona Suzanne Zimbardo, Arizona