Effective Fiscal Year 2016, there will be changes to payroll accounting at USC. The Kuali Financial System (KFS) Labor Ledger will be USC's system of record for payroll fiscal reporting. Fiscal reporting refers to the final accounting string (e.g., organization code, account, object code) assigned to the payroll transaction. Labor Distribution payroll reports will now be run from data in the KFS Labor Ledger, a payroll accounting sub-ledger to the general ledger.
These changes to the management of payroll data have been implemented at USC to upgrade and provide the following functionality via the Kuali Financial System:
While the Labor Ledger is the new system of record for payroll fiscal reporting, Workday will remain the system of record for payroll data (e.g., amount paid, taxes, employee pay information) and will be the data source of the original payroll expense sent to the KFS Labor Ledger. Beginning in July 2015, any adjustments made to payroll expenses in KFS will no longer reflect in the Workday system, and fiscal reporting will need to be done via USC's business Intelligence tool for Labor Distribution payroll reports.
Overview of Process
- Workday processes payroll. Cost allocations that are not able to be “resolved” will be defaulted to the dean’s clearing account.
- Workday sends off-cycle payroll daily and on-cycle payroll on processing dates to the KFS Labor Ledger.
- Bad or expired accounts discovered in the integration process will be defaulted to a newly established dean’s clearing account. Bad object codes will be defaulted to 14999.
- Data in the KFS Labor Ledger will be sent to the KFS General Ledger in the same nightly batch process.
- Workday, the KFS Labor Ledger, and the KFS General Ledger will all send data to Business Intelligence (BI).
- Workday data is used for Payroll Services reconciliation reports and to supplement Labor Distribution reporting. But it is not used directly for Labor Distribution reporting because the Workday data's account and/or object code could differ from that in the Labor Ledger due to error processing.
- The Comptroller’s Office is responsible for reconciling the Labor Ledger to the General Ledger. Reconciliation occurs on a daily basis, and corrective action will be taken as necessary.
- As noted, transactions with bad accounting string data will default to the dean’s clearing accounts.
- Departments can use their ASR to find these transactions.
- Departments can use the Payroll Expense Transfer (PET) eDoc to correct transactions and put them into their correct account.
- Once the PET is fully approved, it will be posted to the Labor Ledger and then to the General Ledger, correcting both ledgers with that one action.
PLEASE NOTE: The changes made in July 2015 did not address labor encumbrances. The Comptroller’s Office and the Business Intelligence Team implemented a solution to resolve that situation in February 2016. For more information, please see the Business Intelligence - Payroll Reporting page on this website.
Workday will continue to provide information on the original payroll expenses incurred for USC employees, but USC will move to use business inetlligence reports derived from the KFS Labor Ledger for all payroll fiscal reporting needs. These new reports will provide data on the original pay made to an employee, as well as any adjustments that may have been requested via the payroll expense transfer process.
Starting on July 6, 2015, system users that have been granted the BI-Payroll Reporting role in KFS will have access to run the new payroll reports via the business intelligence reports. Users with the BI-Payroll Reporting role will have access to payroll information using their current account level and organization code level security access. Where necessary, some users may request access for payroll reporting at the region code (home department code) level. Visit the Kuali User Access page for more information on requesting access to specific user roles. The ability to request the BI-Payroll Reporting role and/or region code access will be available via the Kuali User Access form beginning July 6, 2015. Please note that region code access can only be requested for BI-Payroll Reporting and is not currently used for any other functionality in KFS.
Payroll Expense Transfers
Current departmental access to submit and approve payroll expense transfers (PET) will not change. System users will use their exisiting access with the enhanced PET application. Any additional access to accounts, or for PET initiator or approver roles, may be requested via the Kuali User Access form.
The Labor Ledger will continue to be used as the data source for PETs. However, PETs will no longer be sent back to Workday. While the amount an employee is paid cannot change from system to system, the accounting string can change. The systems will reconcile by employee, but will not reconcile by account or object codes because error processing and PETs will move the data between object codes and accounts. However, Labor Distribution reports can be run to show data sourced from Workday versus data sourced from PETs.
Changes to the payroll expense transfer in KFS include the ability to request object code corrections (including when 14999 has been assigned), the ability to transfer at the earn code level, and streamlined processing to assure that transactions post correctly when all approvals have been made and the document status is listed as final. The new BI Payroll Reporting tool will also improve the user experience when reconciling payroll expense transfers.
Fringe will be calculated on labor object codes on a nightly basis when the data is processed in the General Ledger. Fringe will not be available in the Labor Ledger.
- University biweekly payrolls that cross a fiscal year will now be split on a pro-rata basis between the years at the employee level in the Labor Ledger. The denominator of the pro-rata split will be 14. The numerator of the split will be the number of days in each fiscal year. The exception to this rule is that all CWS payroll in these payrolls will be sent to the “old” fiscal year.
- There will be two payroll periods assigned to a split payroll. BW99 will be assigned to the payroll that falls into the “old” fiscal year. The second period will be the actual payroll period of BW14 or BW15, depending on the year. Adding BW99 prevents one fiscal year from having two payrolls paid with the same payroll period.
- PETs will be allowed in period 13 until a date specified in the closing schedule. Once this date is passed, PETs will go into period one of the new year. Note that PETs will not be allowed in period 13 and period 1 at the same time.
Labor Ledger FAQs
Labor Ledger PowerPoint Overview
Business Intelligence - Payroll Reporting User Guide
Payroll Expense Transfer User Guide
Payroll Reporting In-Person Training Workshops
User Access Requests to Financial System
Workday, the KFS Labor Ledger, and the KFS General Ledger will all send data to Business Intelligence (BI).