GL202 - Introduction to Labor Distribution


Concept

Purpose: Introduce an overview of Labor Distribution

 

Roles: All Labor Distribution roles


Steps:

  1. GL202– Introduction to Labor Distribution

    Wave 2 End-User Training

     

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    Step 1

  2. Lesson 1: Labor Distribution Overview

     

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    Step 2

  3. Course Introduction

    The purpose of the GL202 course is to explain the transactions related to the Labor Distribution process in FI$Cal.

    Prerequisite Review

    •You should have completed the following prerequisite courses:

    •FS101 – Introduction to FI$Cal

    •FS102 – FI$Cal Navigation

    •GL101 – Introduction to General Ledger

    Course Duration: 1 hour

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    Step 3

  4. General Ledger Course Hierarchy

    Labor Distribution courses are included in the General Ledger course catalogue. The course hierarchy below displays the sequence of the labor-related courses that should be taken by the learner, according to their Labor Distribution training role.

    •GL101: Introduction to General Ledger is a 4 hours instructor-led training

    •GL202: Introduction to Labor Distribution is a 1 hour web-based training

    1. GL253: Understanding LD Configuration is a 4 hours web-based training

    2. GL263: LD Batch Processing and Error Reports is a 4 hours web-based training

    Users who perform the following activities should take this course – Department GL Journal Processor, Department GL Journal Approver1, Department GL Journal Approver1, Department COA Maintainer, Department GL Viewer, LD Processor and DL Maintainer

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    Step 4

  5. Lesson Objectives

    After completing this lesson, you will be able to:

    •Explain the key terms and definitions related to Labor Distribution

    •Describe the overall FI$Cal solution

    •Explain the benefits of the Labor Distribution solution

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    Step 5

  6. Labor Distribution Key Terms

    •Personal Activity Sheet (Activity Sheet) - The Labor Distribution (LD) term for timesheets. These identify the number of hours an employee or employee group worked by type (e.g., regular, overtime) and by ChartField combination.

    •Employee Groups (Groups) - Employees within an Agency Code and Reporting Unit that share common characteristics (e.g., default ChartField combinations and percentages).

    •Group Activity Sheet - Activity Sheet that includes all hours worked by the members of a group.

    •Adjustment Activity Sheet - Activity Sheet entered to adjust previously recorded time for either an individual or a group.

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    Step 6

  7. Labor Distribution Key Terms

    •Defaults - ChartField combinations for recording payroll costs. Defaults are configured at the Business Unit, Employee, Employee Group, and Payment Type level and are used based on predefined hierarchies. Some defaults include multiple ChartField combinations and associated percentages for splitting costs across multiple funding sources. These can be simplified by using Task IDs.

    •Task IDs - Shortcut codes used to split payroll costs across ChartField combinations based on percentages. These simplify recording costs in ultimate funding sources and maintaining funding sources over time. They are similar to SpeedTypes and Program Cost Accounts (PCAs), but like SpeedTypes, they are not recorded in accounting entries.

    •Distribute by Employee - Distribute a gross pay amount and associated benefits based on an Activity Sheet (individual or group) or based on employee or group defaults.

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    Step 7

  8. FI$Cal Accounting Solution

    This slide provides a graphical representation of the FI$Cal Accounting module implementation from Pre-Wave to Wave 3. The modules within the FI$Cal Accounting Solution by Wave are:

    •Pre Wave: Purchasing

    •Wave 1: Purchasing, Asset Management, Project Costing, Billing, Accounts Payable, Cash Management, Accounts Receivable, General Ledger, Commitment Control

    •Wave 2: Purchasing, Customer Contracts, Grant Management, Project Management,

    •Wave 3: Purchasing, Deal Management, Loan Management

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    Step 8

  9. Benefits of Labor Distribution in FI$Cal

    •Automated interfaces for payroll and activity sheet data

    •Payroll cost distribution can be pre-configured for an employee or employee group, or an Activity Sheet can be entered

    •Centralized and standardized process for all FI$Cal departments that can be run ad hoc depending on department needs

    •Uses ChartField Combination Editing and Budget Checking to verify distribution accounting entries

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    Step 9

  10. Lesson Summary

    The key points covered in this lesson are listed below:

    •List the key activities, terms, and definitions that are related to the FI$Cal Labor Distribution solution

    •Explain how Labor Distribution fits in to the overall solution

    •Understand the benefits obtained from the Labor Distribution solution

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    Step 10

  11. Lesson 2: Wave Functionality

     

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    Step 11

  12. Lesson Objectives

    After completing this lesson, you will be able to:

    •Describe what is changing with Wave 2 in FI$Cal

    •Explain what is not changing with Wave 2 in FI$Cal

     

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    Step 12

  13. What is Changing Due to FI$Cal

    •Payroll will be reconciled with SCO by the FI$Cal Service Center before departments run Labor Distribution

    •Activity Sheets may be uploaded into Labor Distribution from an Excel template

    •Labor Distribution can be run incrementally as Activity Sheets are being entered or uploaded

    •As payroll costs are distributed, Labor Distribution generates accounting entries to reverse the initial, summary-level payroll entry

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    Step 13

  14. What is Not Changing Due to FI$Cal

    •The SCO’s monthly Payroll Payment History File will be used by Labor Distribution to distribute payroll costs.

    •Labor Distribution will use statewide and departmental rules to distribute payroll costs

    •Departments can use Activity Sheets for individuals or employee groups to distribute payroll costs

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    Step 14

  15. Lesson Summary

    The key points covered in this lesson are listed below:

    •It is important to remember that Payroll will be reconciled with SCO by the FI$Cal Service Center before departments run Labor Distribution

    •Activity Sheets may be uploaded into Labor Distribution from an Excel template

    •Departments can still use Activity Sheets for individuals or employee groups to distribute payroll costs

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    Step 15

  16. Lesson 3: Key Concepts and Business Processes Overview

     

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    Step 16

  17. Lesson Objectives

    After completing this lesson, you will be able to:

    •Provide an overview of the Labor Distribution lifecycle

    •Explain how Labor Distribution will be configured

    •Describe the roles associated with the Labor Distribution process

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    Step 17

  18. Labor Distribution Lifecycle Overview

    Payroll data is received in FI$Cal from the SCO inbound interface:

    •The State Controller’s Office (SCO) legacy payroll system sends an electric file with payroll data to FI$Cal on a monthly basis

    •Each Department initially records payroll costs in a single, Department-specific accounting classification (ChartField combination) representing the Department’s “payroll clearing account”

    •The Labor Distribution process in FI$Cal uses the payroll data to create accounting entries to redistribute the following:

         •Gross salaries

         •Wages

         •Benefits

         •Cash

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    Step 18

  19. Labor Distribution Lifecycle Overview

    Default configuration set up by the department LD Maintainer to reclassify payroll costs and Activity sheets completed by each employee define the chartfields where labor costs should be allocated:

    •Prior to running the Labor Distribution Process in FI$Cal, the Department must configure specific payroll classifications based on the type of payment

    •Labor Distribution configuration can be done by configuring and utilizing default classifications by employee or employee group

    •Personal Activity Sheets (Activity Sheets) can also be used. Similar to “timesheets”, they capture details of an employee’s hours worked for a specific pay period month and the ChartField combinations to which the related costs should be allocated.

         •Not all departments will be using Activity Sheets

         •Employee Groups can be configured to identify whether a Group Activity Sheet is required

         •Employees can be configured to identify whether an individual Activity Sheet is required

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    Step 19

  20. Labor Distribution Lifecycle Overview

    Labor Distribution Process - Labor Distribution Process is run by the department in FI$Cal

    •The Labor Distribution Process is run for individual Business Units (Departments)

    •The process can be run at any time and as many times as needed

    •The process creates accounting entries based on the configuration for the employee, employee group or Activity Sheets

         •The process also creates accounting entries to reverse the costs recorded in the payroll clearing account

    •Amounts that cannot be distributed are identified on error reports.

         •To fix this, configuration for the employee will need to be updated OR the Activity Sheet will need to be revised and submitted

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    Step 20

  21. Labor Distribution Lifecycle Overview

    Entries undergo chart field combination editing and budget checking:

    •After the Labor Distribution Process is run, accounting entries undergo the following:

         •ChartField Combination Editing – FI$Cal checks each entry to verify that the ChartField combination used is valid

         •Budget Checking – FI$Cal evaluates whether there is enough budget allocated to each ChartField combination to cover the transaction

    •Entries that do not pass the ChartField Combination Editing or Budget Checking processes may require editing the default configuration for the employee, Employee Group, or submission of a revised Activity Sheet

         •The Labor Distribution Process will need to be rerun to evaluate the changes

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    Step 21

  22. Labor Distribution Lifecycle Overview

    Valid entries are picked up by the Journal Generator process - Journals are posted to the General Ledger and Entries referencing a Project ID are sent to the Project Costing module in FI$Cal

    •Valid entries (entries that pass Chartfield Combination Editing and Budget Checking) are picked up by the Journal Generator batch process that is run at regularly scheduled intervals

    •This process generates journals and posts them to the General Ledger

    •Valid Accounting Entries referencing a Project ID are sent to the Project Costing module within FI$Cal

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    Step 22

  23. LD Configuration Overview

    1. Labor Distribution has both Statewide and Departmental configuration

    2. Some configuration was set up by Departments prior to go live, while other configuration will be set and maintained by Departments as needed throughout the LD Process

    •Identifies default ChartField mappings

    •Annually, additional entries may be needed

    •Employees and Employee Groups will be updated on an ongoing basis:

         •As new employees are hired

         •As job duties change (if there is an impact on the employee’s default configuration)

         •As reporting structures change within the department

         •As budgets and ChartField values are changed

    3. Departments using CALSTARS Labor Distribution were provided the opportunity to configure their FI$Cal Labor Distribution with similar attributes

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    Step 23

  24. LD Configuration Overview

    1. Upfront Configuration Activities

    •Reporting Unit Translation: Maps SCO Agency Code and Reporting Unit to Business Unit and identifies the Payroll Clearing ChartField combination for each

    •Business Unit Options: Identifies various Labor Distribution Options and defaults for the Business Unit

    •Payment Type Options: Identifies payroll Payment Types and, optionally, Payment Type Suffixes, and how they are treated in FI$Cal

    •Payment Type Mapping: Maps Payment Type/Suffix combinations to Activity Sheet Earnings Types and can be used to determine Account and/or Alt Account by Earnings Type

    •Serial Number Options: Identifies Account and Alternate Account for recording gross payment amounts for blanket Serial Numbers

    •Class Type Options: Identifies Account and Alternate Account for recording gross payment amounts for Payroll Class Types

    2. Ongoing Configuration

    •While initial configuration will be in place for Employee Options/Defaults, Employee Group Options/Defaults, and Task IDs, Departments will be able to modify this configuration as needed

    •Employee Options and Defaults: After an employee is established in FI$Cal from an inbound SCO employee interface, the configuration options and defaults for the employee can be set

    •Employee Group Options and Defaults: Employee Groups can be used in FI$Cal to identify allocation attributes and configuration for a group of employees

    •Activity Sheets: Employees or Employee Groups required to submit Activity Sheets will do so following departmental procedures. The Activity Sheet Processor will administer Activity Sheet submission and processing

    •Task IDs: Tie default ChartField combinations and percentages to a unique identifier

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    Step 24

  25. Using Activity Sheets

    •There are three different ways to enter activity sheets:

         •Online using the Activity Sheet Page in FI$Cal (pictured on the next slide)

         •Uploading from an Excel Activity Sheet template

         •Interfacing Activity Sheets from a departmental time capture system

    •Departments can decide whether they will be using Activity Sheets and can configure employees or Employee Groups to have submission of an Activity Sheet required or optional

    •If an Activity Sheet is not used, the Labor Distribution process will allocate payroll costs based on the configuration for the employee or Employee Group

    •Task IDs are set up and maintained by the LD Maintainer and can be used to simplify maintenance of Employee and Employee Group Defaults and preparation of Activity Sheets

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    Step 25

  26. Activity Sheet Entry in FI$Cal

    This is a screen shot of personal activity sheet having field names like Business Unit, Calendar Year, Ca lender month, Sequence Number, Status, Employee ID, Payroll Agency Code, Last Name, First name etc.

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    Step 26

  27. Department vs. Central Roles

    Running the Labor Distribution process in FI$Cal requires action from Department and Central roles.

    •Central LD Processor/ FI$Cal Service Center (FSC) 

         •Loads payroll file from SCO on a monthly basis

         •Reconciles payroll data using the Master Payroll Reconciliation Report generated by FI$Cal and the SM62 generated by SCO

    •Department Activity Sheet Processor

         •Facilitates successful entry of Personal Activity Sheets for Department employees

         •Runs error reports after LD Process is run to identify missing or incorrect Personal Activity Sheets

    •Department LD Processor

         •Runs the LD Process in FI$Cal

         •Runs departmental reports as needed

    •Department LD Maintainer

         •Runs error reports after LD Process is run to identify and resolve any configuration errors

         •Maintains ongoing LD configuration items

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    Step 27

  28. Perform Labor Distribution

    1. Central LD Processor/ Dept. Activity Sheet Processor loads data

    •SCO provides Legacy Payroll File

    •FI$Cal Service Center (FSC) loads file

    •Departments load Activity Sheets

    2. FSC reconcile with SCO

    •Produce the SCO Master Payroll Reconciliation Report from FI$Cal and reconcile with SCO’s CLR3012 Business Month Clearance Summary

    3. Dept. LD Processor processes Labor Distribution

    •Labor Distribution creates accounting entries for employee payroll costs based on configured rules and/or Activity Sheets

    •FI$Cal validates accounting entries

    4. Dept. LD Maintainer/ Activity Sheet Processor resolves errors

    •Run Missing Activity Sheet Report and follow-up

    •Run various error reports and resolve error

    5. Dept. LD Processor create reports

    •Run departmental reports as needed

    Key Impacts

    •FI$Cal will provide three different methods for loading Activity Sheets

    •Payroll will be reconciled with SCO before Labor Distribution is run

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    Step 28

You have now completed the "Introduction to Labor Distribution" topic.

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