Description of the decision to be made

The legacy process that creates the fringe and fringe disencumbrance transactions runs once a month as a part of the payroll close out process.  This process calculates the actual fringe charges for the remainder of the fiscal year for each of the fringes and posts these transactions on a VJ1 document.  A copy of this VJ1 document is also created with the only difference being that the amounts will be credits instead of debits.  This copied VJ1 is then final approved in the next month so that all the fringes that had posted in the previous month are then disencumbered.

Because we are moving to pooled fringes, how we create the fringe and fringe disencumbrance transactions will be substantially different than what is done in DEFINE today.  Here are the major differences:

• The same integration that will be autosubmitted every day to extract data needed for posting salary and salary disencumbrances transactions will also contain the data needed to post the pooled fringe and the pooled fringe disencumbrance transactions.  Because of the transactions that will be included in the off-cycle payroll runs, these runs will not have any pooled fringe charges or pooled fringe disencumbrances. This means the fringe and fringe disencumbrance transactions will be created for each on-cycle payroll run each month instead of once per month.
  • Workday will calculate the amounts that need to disencumbered. Workday calculated the total encumbering amount either as part of the annual encumbrance process, or the encumbrance adjustment process. Workday disencumbers a proportional amount each month (regardless of what the actual fringe charge is). So for example, for a 12 month employees, the encumbrance will be the total fringes for the 12 months, and the disencumbrance will be 1/12^th each month (regardless of what the actual fringe that month is). This is different from how DEFINE currently works. (Note:  How encumbrances are being calculated in Workday has already been presented.)
  • We will continue to use the same annual process to disencumber any lingering encumbrances for the Fiscal Year.  A report will be provided so that these same transactions can be entered in Workday.

Additionally, in legacy, we do not use DEFINE codes for either fringe charges or disencumbrance transactions and this will remain the same during the bridging period. 

Concerns/Feedback/Outstanding from subcommittee

None.

Recommendation from subcommittee

Move forward with the pooled fringe charges and pooled fringe disencumbrances process explained herein.

Timeframe

Present at the November 15, 2017 steering committee meeting. 

Recommended decision maker

Workday Steering Committee based on recommendation from Workday Bridging Subcommittee

Recommended Campus Stakeholders to Engage

Workday Bridging Team (includes payroll, accounting, budget, sponsored projects), Workday Bridging Subcommittee