Kuali Financial System
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Salary Encumbrance Calculation
Functional Specification
KFSCP-5
________________________________________________________________________________
04/01/2015
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Salary Encumbrance Calculation
Table of Contents
Revision History
Functional Description
Impact
User Story
Assumptions
Requirements
Documents (Transactional, Maintenance, Search/Inquiry Screens)
Parameters
Kuali Identity Management changes (Roles, Permissions, Responsibilities)
Batch Jobs
Integration with other Kuali Applications
Database
Impact to Accounting Entries
Questions/Issues
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Salary Encumbrance Calculation
Revision History
Version
Date
User
Description
1.0
04/01/2015
Kymber Horn
Initial Spec.
1.1
04/02/2015
Kymber Horn
Added parameters for Origination and Document
Type. Removed requirement to create LLPE
document.
1.2/
04/06/2015
Kymber Horn
Removed Origination parameter, should use the
same origination as payroll entries.
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Salary Encumbrance Calculation
Functional Description
A job that will generate salary encumbrance transactions based on the salary information provided by the
institutions payroll system. Encumbrance entries will be calculated by comparing the current internal
encumbrance stored in the labor ledger against the full encumbrance amount being sent from the labor ledger at
the employee/position level on a daily basis.
Impact
If Payroll is not encumbered or updated daily, then account balances are not accurate.
User Story
as a … (user)
i want...
so that...
Fiscal Officer, Project
Director or Manager
To know what my available
balances are
I do not over or under spend.
Assumptions

The Payroll system will provide the full personnel encumbrance transactions in the labor ledger
transaction format on a daily basis.

The initial full encumbrance at the beginning of the year will be posted to the labor ledger. This is not
an “annual process” but should occur naturally as part of the “delta process.”

The daily increments will be calculated by this process in the labor ledger transaction format and will be
posted to the labor ledger on a daily basis.

The fringe benefit encumbrance should be calculated based on the salary encumbrance difference. This
should be addressed in current functionality by the benefit calculation modification contributed by
Cornell (KFSOLD-21807)
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Salary Encumbrance Calculation
Requirements
Requirements
Short Explanation (i.e. two new batch jobs, changes to
existing vs new)
Y/N
Transactional Documents
N
Maintenance Documents
N
Search/Inquiry Screens
N
Parameters


IND parameter to turn it on/off.
Paremeter to determine Document Type
Y
Roles
N
Permissions
N
Responsibilities (workflow)
N
Batch Jobs / Uploads
A new job, LaborEncumbranceAdjustment does the following:
 Reads the labor ledger record from the payroll systems
labor ledger transaction file to obtain the full encumbrance
amount.
 Calculates the difference in the encumbrance as described
below in order to post the “delta” in encumbrance on a
daily basis.
Y
Integration/reliance on other
Kuali Applications (i.e. KC)
N
Database
N
Impact to Accounting
Entries
Creates entries to book salary encumbrances.
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Salary Encumbrance Calculation
Y
Documents (Transactional, Maintenance, Search/Inquiry Screens)
N/A
Parameters
Namespace Code:
Component
Application ID
Parameter Name
Parameter Value
Parameter Constraint Code
Parameter Description
KFS-LD – Labor Ledger
Batch
KFS
USE_LABOR_LEDGER_ENCUMBRANCE_IND
N
Allowed
Payroll encumbrances are created for salary transactions received from the institutions
payroll system when this flag is set to Y.
Namespace Code:
Component
Application ID
Parameter Name
Parameter Value
Parameter Constraint Code
Parameter Description
KFS-LD – Labor Ledger
LaborEncumbranceAdjustment
KFS
DOCUMENT_TYPE
PAYE
Allowed
Document Type code that is used in the payroll encumbrance entries created by the
LaborEncumbranceAdjustment job.
Kuali Identity Management changes (Roles, Permissions, Responsibilities
(workflow))
N/A
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Salary Encumbrance Calculation
Batch Jobs / Uploads
Calculation of Encumbrance Adjustment (Daily)

Find the matching record in the Labor Ledger Balance Table based on the Fiscal Year, Balance Type
(IE), Employee ID and position number.
o If a match is not found, create an encumbrance transaction.
o If a match is found and the accounting string (Chart, Account, Sub-Account, Object and SubObject) is different, liquidate the previous encumbrance and establish the new encumbrance
using the new accounting string.
o If the labor ledger balance annual amount is less than the payroll transaction amount, create an
encumbrance transaction for the difference.
o If the encumbrance transaction exists in the Labor Ledger from the previous run and the
corresponding full encumbrance does not exist then the entire line of encumbrance will be
liquidated in the Labor Ledger.
Output Labor Ledger Transaction Format
Column Name
Length
Start
Fiscal Year
Chart Code
Account Number
Sub-account Number
Object Code
Sub-object Code
Balance Type Code
Object Type Code
Fiscal Period
Document Type
4
2
7
5
4
3
2
2
2
4
1
5
7
14
19
23
26
28
30
32
Origin Code
2
36
Document Number
Entry Seq Number
Position Number
Project Code
Description
Sign
Amount
Debit/Credit Code
14
5
8
10
40
1
20
1
38
52
57
65
75
115
116
136
Transaction Date
Org Doc Number
10
10
137
147
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Salary Encumbrance Calculation
End
Encumbrance
Liquidation
4 Value provided by the Payroll file
6 Value provided by the Payroll file
13 Value provided by the Payroll file
18 Value provided by the Payroll file
22 Value provided by the Payroll file
25 Value provided by the Payroll file
27 IE
29 Derived from the Object Code
31 Blank
35 Derived from DOCUMENT_TYPE
parameter – component
LaborEncumbranceAdjustment.
37 Same as the Payroll Entries
Origin code.
51 Value provided by the Payroll file
56 Value provided by the Payroll file
64 Value provided by the Payroll file
74 Value provided by the Payroll file
114 Value provided by the Payroll file
115 +
135 Difference. Fill with leading zero
136 Positive=D,
Positive=C,
Negative=C
Negative=D
146 Value provided by the Payroll file
156 Space
Org Ref Id
Org Ref Type Code
Ref Origin Code
Ref Doc Number
Reversal Date
Enc Update Code
Transaction Post Date
Pay Period End Date
Transaction Total Hour
Payroll Date Fiscal Year
Payroll Date Fiscal Period
Code
Employee ID
Employee Record
8
4
2
14
10
1
10
10
9
4
2
157
165
169
171
185
195
196
206
216
225
229
164 Space
168 Space
170 Space
184 Space
194 Space
195 Space
205 KFS Posting Date
215 Space
224 Space
228 Space
230 Space
11
3
231
242
Earn Code
Pay Group
Salary Admin Plan
Grade
Run ID
Labor Origin Chart Code
Labor Origin Account Number
Labor Origin Sub Account
Number
Labor Origin Object Code
Labor Origin Sub Object Code
Company
Set ID
3
3
4
3
10
2
7
5
245
248
251
255
258
268
270
277
241 Value provided by the Payroll file
244 Value provided by the Payroll file
or the same as the matching
record.
247 Space
250 Space
254 Space
257 Space
267 Space
269 Space
276 Space
281 Space
4
3
3
5
282
286
289
292
285 Space
288 Space
291 Value provided by the Payroll file
296 Value provided by the Payroll file
Integration with other Kuali Applications
N/A
Database
N/A
Impact to Accounting Entries
Encumbrance entries are created to establish, increase and decrease payroll encumbrances based on information
received from the institutions payroll system.
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Salary Encumbrance Calculation
Questions/Issues
–9–
Salary Encumbrance Calculation