Standard Operating Procedures
The KFS Labor Distribution module sits between the PeopleSoft HR/Payroll system and the KFS general ledger. It is used to manage the accounting aspects of compensation-related expenses (such as salaries and benefits) from the labor distribution records created in PeopleSoft.
The Labor Distribution module also allows authorized users to make necessary adjustments to the Labor Ledger records. The Labor Ledger is a subsidiary ledger to the General Ledger. It holds the details of earnings, benefit and encumbrance transactions generated by the Payroll system and subsequent retroactive adjustments. These are summarized daily and fed to the General Ledger. The Labor Distribution module also updates beginning balances during the year-end process.
Note: Labor distribution processes are especially important for recording compensation records accurately in the General Ledger and managing effort reporting in the Effort Certification module.
Labor Distribution includes the following:
- Labor Enterprise Feed – receives payroll data from PeopleSoft and calculates fringe benefit charges for gross pay and encumbrance details
- Labor Ledger Scrubber – validates entries created in PeopleSoft and KFS Labor Distribution e-docs
- Labor Ledger Poster – writes valid entries to the Labor Ledger Entry table
- Labor Feed – sends consolidated transactions to the General Ledger
- Labor Ledger Year End – brings Contracts and Grants labor balances forward to the next fiscal year (i.e., supports inception-to-date reporting)
Salary Expense Transfer (ST)
Staff authorized to transfer salary expenses will be given the KFS Salary Transfer Initiator role and permission to view and manage salary expenses for their Organization(s). Access to the other KFS Labor Distribution e-docs will be given to staff with university-wide responsibilities for managing payroll data.
This e-doc is a Labor Ledger transaction e-doc that is used to move an employee’s salary and benefit expenses for a particular accounting period (or set of periods) from one or more accounts to another account (or accounts).
- Benefit Expense Transfer (BT) – moves benefit expenses from one account(s) to another (infrequently used)
- Year End Salary Expense Transfer (YEST) – processes year-end salary expenses (this is a version of the ST e-doc)
- Year End Benefit Expense Transfer (YEBT) – processes year-end benefit expenses (this is a version of the BT e-doc)
Labor Distribution e-docs, as with all KFS e-docs, use predefined rules and automated workflow. These decrease errors and guide the staff performing transactions. All KFS users can view most transaction documents, and view all data except for sensitive or confidential information like salaries. Maintenance e-docs are administered centrally and do not route for approval.
Queries are run at multiple points during payroll process to catch potential data problems.