|To:||Chief Fiscal Officers, Payroll Directors, and MMARS Liaisons|
|From:||Martin J. Benison, Comptroller|
|Date:||June 29, 2011|
Earnings Codes Processing During Accounts Payable Pay Period
The purpose of this memo is to inform Departments of the methodology for distributing and recording HR/CMS Payroll charges in LCM and MMARS during the Accounts Payable period. To accommodate multi-year payroll processing, certain earnings codes will only charge to FY2011. This memo provides Payroll Directors detailed guidelines on how to charge FY2011 and FY2012. Please note that the instructions in this memo are issued consistent with State Finance Law which requires that Departments account for expenditures in the fiscal year in which the obligation is incurred.
The Accounts Payable Period begins with the first pay period after Split Year and includes pay periods ending 7/16, 7/30 and 8/13. During Accounts Payable, all Prior FY payments must have a related FY2011 Payroll Hold (PH) encumbrance for funding. Departments may not pre-pay for FY12 obligations using FY11 codes and conversely may not pay for obligations incurred in FY11 with FY12 funds without legislative authorization or prior year deficiency authorization. Use of payroll codes is subject to audit; therefore, Payroll Directors should ensure that the appropriate codes are selected carefully to reflect the fiscal year of the obligation.
HR/CMS Posting For Accounts Payable
There are only 2 ways to charge FY2011 in HR/CMS:
During Split Year, the following codes had specific FY logic: Reimbursement codes, Retro codes, Settlement codes, Sick and Vacation Buy Out. This specific FY logic will be removed for Accounts Payable periods.
The following Accounts Payable Codes will only be available during Accounts Payable pay periods and will always have a Posting Date of 6/30/11and charge to FY2011:
*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 pay period posted in Time Sheets.
Codes that are subject to special accumulators (earnings based on other earnings)
Departments that do not use Time Sheets for Employee Reimbursements and need to charge to FY2011 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
For 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 6/19 in Time Sheets will charge to FY2011.
Prior Period Adjustment postings will carry the same Posting Date as the pay period posted in Time Sheets.
· REG and OVERTIME (and related implied exceptions) reported on 6/15/11 will charge to FY11. Any LCM distribution must have a time line effective as of 6/15/2011.
All Accounts Payable Codes will have a Posting Date of 6/30/11 and will be charged to FY11. Any LCM distributions must have a corresponding timeline effective as of 6/30/11.
In order to process an EPPA for one of the Accounts Payable Event Codes (e.g. ABN), first define the EPPA for the last Pay Period of the Fiscal Year - for FY11, that would be the Pay Period that began on 6/19/2001 and ended on 7/2/2011. These Events have a date of 6/30 and use the Accounting (DEPTE, EPPA, etc.) in effect during that Pay Period.
In order to process an EPPA for an Accounts Payable charge processed as a Prior Period Adjustment in Weekly Elapsed Time in HR/CMS, define the EPPA for the Pay Period in which the Prior Period Adjustment was processed.
Payroll Hold Transactions
Each accounting line of a PH transaction must contain the following required fields in each of the following Fund or Detail Accounting fields:
Use one accounting line for each distinct combination of Fund, Sub Fund, Department, Appropriation and Object.
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 within 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 and 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 and Capital 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 and 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 on the Comptroller Intranet:
If you have any questions regarding these instructions, please contact the MMARS Helpline at 617-973-2468 or via email at mailto:firstname.lastname@example.org.
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