Year-end biweekly payroll accrual processing

DFA will be processing a biweekly payroll accrual for six days, June 23, 24, 27, 28, 29 & 30, so that the accrual appears as a FY 2016 expense. This is an accrual for financial statement purposes only, there will be no labor ledger entries, nor will it affect effort certification reports. DFA will post the biweekly payroll accrual to period 12 (P12) no later than July 6.

Reminder: Units should not process any payroll accruals unless preapproved by DFA. If you believe an accrual is necessary, please direct requests to dfa-generalaccounting@cornell.edu.

The accrual entry will:

• Be equal to 60% of the pay period ending June 22 and will exclude student wages.
• Be posted at the account and sub-account level with the following attributes:
  • DR (debit) salary accrual 5380.
  • DR (debit) benefits accrual 5640.
  • CR (credit) accrued expenses 2010.
• Have an e-doc number of FY16YEPRACCR.
• Be posted as a collector file in P12.

FY 2016 will reflect the reversal of the FY 2015 four-day accrual, plus the FY 2016 six-day accrual, for a net of two accrued days for the fiscal year.

Fund group CG-Contracts & Grants accounts will be posted to central college accounts instead of posting to the individual accounts. This change was implemented to streamline the efficiency of the contract and grant billings, which cannot include accruals.

Reverse FY 2016 Year-End Payroll Accrual in FY 2017

DFA will reverse FY 2016 biweekly payroll accrual, and the entry will:

• Be posted in July, Period 1.
• Have an e-doc number of FY16YEPRACCR.
• Be posted as a collector file.

Note: There is no need for a semimonthly payroll accrual, because the pay period ends on June 30.