1. Define the Labor/Payroll Process
Show Slide #1: Define the Labor/Payroll Process
References:
DFAS-IN Regulation 37-1, Finance and Accounting Policy Implementation
DFAS-IN MANUAL FY, The Army Management Structure
GFEBS Performance Support Website
Academic Hours/Methods
02 hrs. / 00 min. DSL (small or large group discussion)
01 hrs. / 20 min. PE (Practical Exercise)
00 hrs. / 00 min. Test
00 hrs. / 00 min. Test Review
03 hrs. / 20 min. Total Hours
Method of Instruction: DSL - Discussion (large or small group)
Facilitator's to Learner Ratio: 1:25
Time of Instruction: 00 hrs. / 05 min.
Media: PowerPoint Presentation
 Motivator: The total amount of labor cost is much more than wages paid. It also includes payroll taxes, the cost of company-paid medical insurance, life insurance, worker’s compensation insurance, pension contributions matched by the company, and other benefits. Simple math, right? Let’s keep looking…..

2. Terminal Learning Objective
Action: Define the labor/payroll process
Conditions: You are a GFEBS user with access to a computer, the GFEBS training database, applicable GFEBS references, and awareness of Operational Environment (OE) variables and actors
Standards: With a minimum of 80% accuracy, learners must demonstrate proficiency to:
Communicate how GFEBS captures labor and payroll costs
Identify the GFEBS interfaced relationship to capture cost
Determine the difference between budget relevant and
non-budget relevant labor and payroll costs
Communicate how standard rates are used to allocate labor costs to the benefiting cost objects
Communicate why detailed labor and payroll transactions are loaded into Business Intelligence (BI)
Show Slide #2: Terminal Learning Objective
Safety Requirement: In a training environment, leaders must perform a risk assessment in accordance with DA PAM , Risk Management. Leaders will complete a DD Form 2977 RISK MANAGEMENT WORKSHEET during the planning and completion of each task and sub-task by assessing mission, enemy, terrain and weather, troops and support available-time available and civil considerations, (METT-TC). Local policies and procedures must be followed during times of increased heat category in order to avoid heat related injury. Consider the work/rest cycles and water replacement guidelines IAW TRADOC Regulation
Risk Assessment Level: Low.
Environmental Considerations: Environmental protection is not just the law but the right thing to do. It is a continual process and starts with deliberate planning. Always be alert to ways to protect our environment during training and missions. In doing so, you will contribute to the sustainment of our training resources while protecting people and the environment from harmful effects. Refer to FM Environmental Considerations and GTA ENVIRONMENTAL-RELATED RISK ASSESSMENT.
Instructional Lead-in. (Publish and Process): In this lesson we will discuss how GFEBS captures Labor and Payroll Cost, Identify the systems that interface with GFEBS to capture cost, Determine the difference between Budget Relevant and Non-Budget Relevant Cost, Communicate how Standard Rates are used to allocate labor costs to the benefiting Cost Object and Communicate why detail labor and payroll transactions are loaded into BI.

3. Capturing Labor Cost and Payroll Activities
To account for financial impact of labor costs and pay/expenses
Payroll costs include salary, benefits (health insurance, workman’s compensation insurance, matching retirement contributions by employer), awards/bonuses, and deductions (payroll taxes, social security, allotments)
Defense Civilian Payroll System (DCPS) – System used to capture civilian payroll details
Show Slide #3: Capturing Labor Cost and Payroll Activities

4. Capturing Payroll Costs
Payroll files are received automatically through an interface or entered manually in GFEBS
GFEBS posts actual payroll commitments, obligations, expenses, and disbursements
ECC sends detailed payroll records to Business Intelligence (BI)
Received Automatically thru an Interface
Entered Manually in GFEBS
Show Slide #4: Capturing Payroll Cost
Facilitator’s Note: Remind the students that Payroll costs can be Received Automatically thru an Interface or Entered Manually in GFEBS

5. Full Costs
The entire cost of goods/services received, whether or not the items were paid for/funded by the receiver
FFMIA and the Statement of Federal Financial Accounting Standards 4: Managerial Cost Accounting Standards and Concepts (SFFAS 4)
Require Army to record full costs of payroll and labor
Require reporting of full costs against benefitting cost objects
Show Slide #5: Full Cost
Facilitator’s Note: Includes the entire cost of goods and services received, whether or not the items were paid for or funded by the receiver.
FFMIA and the Statement of Federal Financial Accounting Standards 4: Managerial Cost Accounting Standards and Concepts (SFFAS 4)

6. Federal Guidelines on Costing
DOD Financial Management Regulation (DOD FMR)
Defense Finance and Accounting Service (DFAS) Blue Book: A guide to Federal Requirements for Financial Management Systems
Show Slide #6: Federal Guidelines on Costing
Facilitator’s Note: SFFAS 4: DOD Financial Management Regulation (DOD FMR) Volume 4, Chapter 19 Defense Finance and Accounting Service (DFAS) Blue Book: A guide to Federal Requirements for Financial Management Systems.

7. Check on Learning #1 Q1: How is labor cost calculated?
A1: Based on hours reported in time-tracking systems
multiplied by the planned standard rate per employee
Q2: Describe a time tracking system?
A2: A system used to record hours worked against one or multiple cost objects
Q3: When capturing payroll costs, what does GFEBS post?
A3: Actual payroll commitments, obligations, expenses, and disbursements at summary level
Show Slide #7: LSA #1 Check on Learning
Note: Animated slide
Q1: How is Labor cost calculated?
A1: On the hours reported in a time tracking system multiplied
by the planned standard rate for that employee.
Q2: Describe a Time Tracking System?
A2: A system used to record hours worked against one or
multiple cost objects.
Q3: When Capturing Payroll Cost what all does GFEBS post?
A3: Actual payroll commitments, obligations, expenses, and
disbursements at a summary Level.

8. GFEBS Army System Interface
Two payroll entitlement systems that Interface with GFEBS:
Defense Civilian Payroll System (DCPS)
Army Time and Attendance Production System (ATAAPS)
Other associated systems:
Italian Local National Payroll System (ILNPS)
Korean National Payroll System (KNPS)
US Army Europe (USAREUR) Local National Pay System Interface (ULNAPSI)
Show Slide #8: GFEBS Army System Interface

9. Budget-Relevant Costs
Payroll or labor costs that affect budget and available funds
Budget-relevant activities include:
Actual payroll expenses – civilian and foreign/local national
Reimbursable or direct charge labor transactions
Actual payroll expenses – military
Show Slide #9: Budget-Relevant Cost
Facilitator’s Note: Budget-relevant activities include:
-Actual Payroll Expenses – Civilian and Foreign/Local Nationals
-Reimbursable or Direct Charge Labor Transactions
-Actual Payroll Expenses – Military

10. Non-Budget Relevant Payroll or Labor Cost
Do not affect budget or available funds, and are visible only via secondary cost elements
Non-budget relevant activities include:
Labor cost allocations within the same fund, FA and funded program
Labor cost allocations of military time tracking hours
Show Slide #10: Non-Budget Relevant Payroll or Labor Cost:
Facilitator’s Note: Do not affect budget and funds available, and are visible only via secondary cost elements. Non-Budget relevant activities include: Labor cost allocations within the same Fund, Functional Area and Funded Program. Labor cost allocations of Military time tracking hours. Standard Rate is the total value of costs planned for an activity type divided by the planned output quantity of the activity type (Planned Input $/Planned Output Qty.) Standard Rate = Planned Cost/Planned Hours = $ Per Hour.

11. Standard Rates and Standard Rate Formula
Standard Rates: Based on estimated or budgeted costs; used to assign costs to cost objects
Standard Rate Formula: Total value of costs planned for an activity type divided by planned output quantity of the activity type
Maintenance Cost Center
Rate of Activity Type = $37.50
The Number of Hours
Worked = 10
$375.00
Show Slide #11: Standard Rates and Standard Rates Formula
NOTE: SLIDE IS ANIMATED
Facilitator’s Note: Go over the above formula with the students. Remember, Standard Rates: Based on estimate or anticipated, planned, or budgeted costs and used to assign costs to cost objects. Standard Rate Formula: Is the total value of costs planned for an activity type divided by the planned output quantity of the activity type.
$375.00
Sender Credited $375.00
Receiver Debited $375.00
The Standard Rate charged is $37.50
per hour worked

12. Detailed Transactions in BI
Conform to policies:
Office of Personnel Management (OPM) requirements for personnel reporting
Meet Office of Management and Budget (OMB) payroll reporting requirements
Enable Analysis:
Labor costs for full time equivalents (FTEs)
Labor rates and variances
Labor and payroll costs for budget and cost planning
Labor costs and payroll expenditure details at individual worker-level
Show Slide #12: Loading Detailed Transactions into BI
Facilitator’s Note: The existence of detailed labor and pay transactions in BI enable the Army to:
- Meet personnel reporting requirements for the Office of Personnel Management (OPM).
- Meet payroll-reporting requirements for the Office of Management and Budget (OMB).
- Analyze labor costs for Full Time Equivalents (FTEs).
- Analyze labor rates and variances.
- Analyze labor and payroll costs for budget and cost planning.
- To analyze labor cost and payroll expenditures at the individual worker-level of detail.

13. Check on Learning #2 Q1: What does full cost include? A1:
Q2: Payroll file is either received_____through an interface or entered ______ in GFEBS?
A2:
Q3: Payroll or Labor costs that affect budget and the availability of funds is considered?
A3:
The entire cost of goods and services received, whether
or not the items were paid for or funded by the receiver.
Automatically / Manually
Show Slide #13: LSA #2 Check on Learning
Note: Animated slide
Q1: What does Full Cost include?
A1: The entire cost of goods and services received, whether or not the items were paid for or funded by the receiver.
Q2: Payroll file is either received_____through an interface or entered ______ in GFEBS?
A2: Automatically / Manually
Q3: Payroll or Labor costs that affect budget and the availability of funds is considered?
A3: Budget Relevant Cost
Facilitator’s Note: Additional question for the students;
Q: Payroll or Labor Costs that do not affect budget and funds available is considered?.
A: Non-Budget Relevant Cost
Q: This type of cost are based on estimates of anticipated, planned, or budgeted costs and used to assign costs to cost objects (What other government agencies are charged)?
A: Standard Rates
Budget Relevant Cost

14. Module “D” Summary Labor and Payroll Reporting Functions
Detailed Labor Costs Report
Payroll Audit Report
Capture labor cost through time tracking
Calculated labor costs
Interfaced time tracking files
Automated Time Attendance and Production System (ATAAPS)
and how ATAAPS Interfaces with GFEBS
Job order numbers (JON) and work centers in ATAAPS
Manual Time Tracking
Direct Activity Allocation
Budget and Non-budget Relevancy
Time Tracking Errors
Show Slide #19: Module “D” Summary
Facilitator’s Note: Go over the entire list of items covered during Module D, asking questions along the way.

15. Module “D” Summary (Continued)
Capturing Payroll Costs
GFEBS being the system of record for the general fund
Defense Civilian Pay System (DCPS)
Interface between (DCPS) Gross Pay (GPR) file and GFEBS
Payroll Accruals
Military Pay: The Defense Joint Military Pay System (DJMS) and future of Integrated Personnel and Pay System-Army (IPPS-A)
Foreign/Local National Pay Systems that Interface with GFEBS (Italian, Korean, and German)
Manually pay files in standard file format
Maintenance of Personnel Master Records
Labor/Payroll Process
Time Tracking
Full Cost
Show Slide #20: Module “D” Summary (Continued)
Facilitator’s Note: Go over the entire list of items covered during Module D, asking questions along the way.

16. Statement of Federal Financial Accounting Standards 4 (SFFAS 4)
DOD Financial Management Regulation (DOD FMR)
Systems that interface with GFEBS
Standard rates and standard rate formula
Performed Transactions
Pulled from BI – Generate Detailed Labor Cost Report
Pulled from BI – Generate Payroll Audit Report
KB21N – Simulate a Manual Direct Activity Allocation
KB23N – Display a Manual Direct Activity Allocation
S_ALR_ – Generate Cost Centers: Actual/Plan/Variance Report
S_ALR_ – Generate Orders: Actual/Plan/Variance Report
KOB1 – Display Actual Cost Line Items for Orders
Show Slide #21: Module “D” Summary (Continued)
Facilitator’s Note: Go over the entire list of items covered during Module D, asking questions along the way.

17. Show Slide #22: Questions?
Facilitator’s Notes: Ask the student’s for any final questions and/or thoughts.

18. Terminal Learning Objective
Action: Define the labor/payroll process
Conditions: You are a GFEBS user with access to a computer, the GFEBS training database, applicable GFEBS references, and awareness of Operational Environment (OE) variables and actors
Standards: With a minimum of 80% accuracy, learners must demonstrate proficiency to:
Communicate how GFEBS captures labor and payroll costs
Identify the GFEBS interfaced relationship to capture cost
Determine the difference between budget relevant and
non-budget relevant labor and payroll costs
Communicate how standard rates are used to allocate labor costs to the benefiting cost objects
Communicate why detailed labor and payroll transactions are loaded into Business Intelligence (BI)
Show Slide #23: TLO Summary
Facilitator’s Note: Read TLO
Action: Define the Labor/Payroll Process
Conditions: You are a budget analyst with access to a computer, the GFEBS training database, applicable GFEBS references, and awareness of Operational Environment (OE) variables and actors
Standards: With a minimum of 80% accuracy, learners must demonstrate proficiency with:
Communicate how GFEBS Captures Labor and Payroll Cost
Identify the Interface relationship GFEBS established to Capture Cost
Determine the difference between Budget Relevant and None-Budget Relevant labor and payroll costs
Communicate how Standard Rates are used to allocate labor costs to the benefiting cost objects
Communicate why detailed labor and payroll transactions are loaded into Business Intelligence (BI)
“Or”
Facilitator’s Note: During the past blocks of instruction, we started with identifying obligation management, its importance and their obligation stages.
Key Terms / Capture Payroll Cost
Full-Cost
Federal Guidelines on Costing
Army System GFEBS System
Labor Cost / Payroll Actuals
Budget Relevant / Non-Relevant Cost
Standard Rates and Formulas
Facilitator's at this time, have one learner from each group to explain the most important take away to them from this lesson. Facilitate a discussion on each answer.