Payroll Accounting Adjustment

The purpose of this process to is to enter expense transfers resulting from retroactive costing allocation changes.

Entering a Payroll Accounting Adjustment in PeopleSync creates the following:

  • A reversal entry of the original journal lines. Actual pay for the worker is not changed.
  • A new journal line reflecting the reversal and a replacement entry with updated costing allocation.
  • Fringe benefit journals are also reversed and new fringe calculations and related journals automatically processed.
  • If the Period End Date is in a closed ledger period, PeopleSync will post the Adjustment Journals in the next open general ledger period and set the Accounting Date to the first day of this period.
  • If hours are present on the journal line, PeopleSync will calculate the hours on the adjustment journal line based on the debit amount calculated on the adjustment journal line.

Reminders

  • Payroll adjustments will be approved by Payroll within 3 days and by SPA, only if the costing impacts Fund 24 or Fund 25, within 3 days.
  • Payroll adjustments will post to the General Ledger 24 hours after final approval by Payroll or SPA.
  • To view all Payroll Accounting Adjustments for an employee, use the Worker History tab.
  • Use the comments section in this transaction to provide approvers (Finance Executive, Payroll, and SPA) with any important details.

Before You Start

Review this information to determine when you need to submit a Payroll Adjustment.

I need to update costing for: The transaction(s) I need to complete are:
Time Periods Retro Cost Allocation Form Payroll Adjustment Costing Allocation
The Past: Pre-PeopleSync (before 4/1/14 for WSQ and 9/1/14 for SOE) X    
The Past: Post-PeopleSync (after 4/1/14 for WSQ and 9/1/14 for SOE)   X  
The past and the future   X X
The future     X

Scenario 1: Payroll accounting adjustment to change the costing and allocate 100%

  1. Type Create Payroll Accounting Adjustments in the Search bar.
  2. Complete all required fields.
    • Select multiple pay periods if the desired adjustment applies to more than one period.
    • Select On-cycle and Off-cycle if adjustments are required on both types of payroll results.
  3. In the lower section, hit the plus (+) icon to add a new row.
    • Select the appropriate Position.
    • Under Pay Components, select Earnings (NOT deductions) and then choose the appropriate components.
  4. The current default costing Worktags will auto-populate when you select Position and Pay Components. If making the change to costing at 100%, make adjustments to Worktags here and enter 100% in the Distribution Percent field.
    • Click submit to go to page 2.
    • If the employee was terminated, the Worktags need to be entered manually.
  5. If the costing impacts Fund 24 or Fund 25, complete and upload the Cost Transfer Justification form.
    • Open the Attachment Tab using the arrow, and load the correct file by clicking on Drop Files Here.
    • The attachment must be a PDF.
  6. There are two sections on the page, Current and Proposed. The Proposed can still be edited and reflects the selected Worktags on page 1.
  7. Check that the two sections are balanced and check that the Worktags are accurate.
  8. Make any necessary adjustments to the Debit Amount, and click Submit.
  9. The transaction will go to the Finance Executive for approval.
    • You can view the status of the process and the transaction details on the Worker History tab.

Scenario 2: Payroll Accounting Adjustment with variable split in the costing allocation

  1. Type Create Payroll Accounting Adjustments in the Search bar.
  2. Complete all required fields.
    • Select multiple pay periods if the desired adjustment applies to more than one period.
    • Select On-cycle and Off-cycle if adjustments are required on both types of payroll results.
  3. Select the plus (+) button to add the Position detail and Pay Components.
    • The Default Costing Worktags will auto-populate.
    • If you know the exact or approximate percentage split in the adjusted costing you can add a new row, by hitting the + button.
    • In each row adjust the costing Worktags as needed, and enter percentages that add up to 100 percent.
    • Click Submit to go to page 2.
  4. If the costing impacts Fund 24 or Fund 25, complete and upload the Cost Transfer Justification form.
    • Open the Attachment Tab using the arrow, and load the correct file by clicking on Drop Files Here.
    • The attachment must be a PDF.
  5. The lower half of the page will provide a more detailed view of the adjustments, providing a view of Current and Proposed.
    • If multiple periods are selected, there will be a Current and Proposed section for each period.
    • Debit Amounts are now available for adjusting if the percentages were not known before.
  6. Review the adjustment and ensure your entries are balanced.
  7. Make any necessary adjustments to the Debit Amount and click Submit.

Common errors

Identical Rows Error

This error occurs when the employee has multiple rows with the same pay component and costing.

To resolve the error, click on the magnifying glass to locate the row(s) in error. You will need to add up the amounts on the duplicate rows, insert the total of the duplicates onto one of the rows, and delete the other rows.

Sum Error

This error occurs when the sums of the Current and Proposed adjustments do not match.

To resolve the error, review each row to locate the error and adjust the Debit Amounts to ensure the sums match.

Last updated in February 2015.