Bridging - Encumbrances

Description of the decision to be made

All encumbrance amounts will be fully calculated by Workday and then posted to DEFINE via 2 processes:

• Annual Encumbrances: This will be a process that will run once a year at the beginning of the Fiscal Year and will process the encumbrances for the whole Fiscal Year.
• Adjustments to Encumbrances. This will be a process that will run every night and will post any encumbrance adjustments that are the result of changes in Workday (new hires, termination, salary changes, costing changes, etc).

In both cases, all the calculation of the encumbrances amounts will be performed by Workday, and the resulting transactions will be posted to DEFINE in a similar way as they are posted today. Some things to note:

• Workday has functionality to calculate encumbrances for hourly employees. Today, we only encumber for monthly employees.  The decision to continue business practice as is (only encumber for monthly employees), needs to be made.
• We will continue to use the same object codes for encumbrances (Salary: 0100 and fringe: 0105)
• Transactions will be posted at the same level of detail as they are posted today:
  • Salary: Person/Position/Account
  • Fringes: Account
• If there are not sufficient funds in the account, the encumbrance will still be posted. If this happens, a notification will be automatically sent to the Department Contact in GB1.
• Redirect of Fringes is explained in a separate recommendation.
• Encumbrance transactions in DEFINE will not have service dates. 

Concerns/Feedback/Outstanding from subcommittee

None.

Recommendation from subcommittee on July 26, 2017

The subcommittee recommends to continue encumbrance practice in a similar manner to today and not encumber for hourly employees.   In all other areas stated above, the recommendation is to move forward with the process explained herein.

Timeframe

Present at the August 2, 2017 steering committee meeting. 

Recommended decision maker

ASMP Steering Committee based on recommendation from ASMP Bridging Subcommittee

Recommended Campus Stakeholders to Engage

ASMP Bridging Team (includes payroll, accounting, budget, sponsored projects)

ASMP Bridging Subcommittee

Action items