FY 2009-37: Earnings Codes Processing During Accounts Payable Pay Period (issued 7/7/2009)

M E M O R A N D U M

Accounts Payable
The Accounts Payable Period begins with the first pay period after Split-Year and includes pay periods ending 7/18, 8/1 and 8/15. During Accounts Payable, all Prior FY payments must have a related FY2009 Payroll Hold (PH) encumbrance for funding. Departments may not pre-pay for FY'10 obligations using FY'09 codes and conversely may not pay for obligations incurred in FY'09 with FY'10 funds without legislative authorization or prior year deficiency authorization. Use of payroll codes are subject to audit, therefore, Payroll Directors should ensure that the appropriate codes are selected with special care to the fiscal year of the obligation.

HR/CMS Posting for Accounts Payable
There are only 2 ways to charge FY2009 in HR/CMS:

• Use an Earnings Code designated as 'Accounts Payable' (see list), regardless if used in Weekly Elapsed Time (WET) or Additional Pay

OR

• In WET use Prior Period Adjustments, posting to a date prior to July 1 (any implied exceptions will post to the same dates)

Any specific FY logic set-up for Split Year processing will be removed. During Split Year the following codes had specific FY logic: Reimbursements codes, Retro codes, Settlement codes, Sick and Vacation Buy Out.

The following Accounts Payable Codes will be available only during accounts payable pay periods and will always have a posting date of 6/30/09 and charge to FY2009:

*Requires CTR Legal Approval

HR/CMS Reimbursement Code Processing
The normal "B" Reimbursement Codes will charge to the Current pay period when used in Additional Pay or to the Day Posted in WET. Departments that do not use WET for Employee Reimbursements and need to charge to Fiscal 2009 should use the following AP specific reimbursement codes: ABN, ABT or CAN during Accounts Payable.

Use the following Earnings/Object code crosswalk to encumber and liquidate the encumbrance PHs accordingly:

LCM Set-up for Prior Fiscal Year Distribution
Any departments that use LCM for distribution, it is important to understand the Posting Dates that HR/CMS passes to set up the corresponding distribution timeline. Posting Dates before 7/1/09 will charge to Fiscal Year 2009.

All Accounts Payable Codes will have a Posting Date of 6/30/2009. Any LCM distributions must have a corresponding timeline.

Prior Period Adjustment postings will carry the same Posting Date as the date posted in WET.

Examples:

• REG and OVERTIME (and related implied exceptions) reported on 6/29/2009 will have a Posting Date of 6/29/09.
• REG and OVERTIME (and related implied exceptions) reported on 7/3/2009 will have a Posting Date of 7/3/09.

Earnings (non-AP) used in Additional Pay will have a Posting Date range based on the Start and End of the current pay period. Entries in Additional pay will be greater than July 1 and will charge to FY10.

Earnings (non-AP) posted to the current period in WET will have a posting date based on the date entered in WET.

Examples:

• Any B01 (Travel) payment entered as a Prior period Adjustment on 5/25/09: B01 will have a Posting Date of 5/25/09; any LCM distribution must have a timeline effective as of 5/25/09.
• Any Accounts Payable Code entered in WET or Additional Pay: The AP Code will have a Posting Date of 6/30/09; any LCM distribution must have a timeline effective as of 6/30/09.

Payroll Hold Transactions
Payroll Holds are needed for all Prior Fiscal Year Charges during Accounts Payable. PHs need to be setup at the Object Code/Appropriation Level. Departments with Expense Budgets will need to specify a Unit at the Fund Accounting Level. Departments with Grant Budgets will need to setup the appropriate Program in Detailed Accounting.

Each accounting line of a PH transaction must contain the following required fields in each of the following Fund or Detail Accounting fields:

• Fund
• Sub Fund
• Department
• Unit (* for Expense Budgets Only)
• Appropriation
• Object
• Program (*for Grants Only)

Use one and only one accounting line for each distinct combination of Fund, Department, Appropriation, and Object Code.

Departments that do not use Departmental Expense budgets should leave the Unit blank. Those Departments that use Expense Budgets must enter a value for Unit. Departments should choose the Unit that rolls up to the Division with the Expense Budget against which the PH will encumber funds.

Departments must choose one and only one Unit to assign to a combination of Fund / Sub Fund / Department / Appropriation / Object.

When the PH is liquidated, the Unit on the actual Payroll document will be used in posting.

Similarly, Departments that do not use Grant budgets should leave the Program blank. Those Departments that use Grant Budgets must enter a value for Program.

Departments must choose one and only one Program to assign to a combination of Fund / Sub Fund / Department / Appropriation / Object.

When the PH is liquidated, the Program on the actual Payroll document will be used in posting.

There are 3 Payroll Hold Job Aids in the Comptroller's Web Portal:

1. Create a Payroll Hold
2. Modify a Payroll Hold
3. Correct Duplicate Lines

If you have any questions regarding these instructions, please contact the MMARS Helpline at 617-973-2468.