Earnings Distribution
User Support / Quick Reference Guide
Earnings Distribution
In this lesson, you will record an Earnings Distribution Change for Eric Thomas. Eric’s earnings were being charged 100% to Organization 13050 (PHYSI Gen Ops). The department now wants to distribute his pay as follows:
60% to Dept 13050 (PHYSI Gen Ops)
40% to Account 51210 (Staff non-Student) and Department 13081 (PHYSI Academic Office)
Budgeted FTE 1.0 remains with Dept 13050
1. / EARNINGS DISTRIBUTION CHANGEAn Earnings Distribution Change occurs when you need to:
> Reallocate the distribution % of an employee's pay - change existing distribution % and add new distribution lines as needed; result providing that 'total percent' and Job FTE remain equal.
> Change the Chartstring(s) to which wages will be charged (no change in Department).
> Change/Add a Work Study Code to an existing distribution.
Note: Other actions may also include changes to earnings distribution lines. However, if you are going to make a change to other Job Data, you will choose a different action other than Earnings Distribution Change.
Earnings Distribution Changes are common, especially for students and other employee positions that don't have 'permanent' funding. In these circumstances, the distributions are changed as various funding sources are used.
Earnings Distribution Record:
Future Dated Row(s) = Future dated information will take effect when that date is reached and that row becomes the Current dated row.
NOTE: It is not recommended to have more than one future dated row to avoid potential complications with other future data changes that may occur before those future effective dates.
Current Dated Row(s) = Determines where current Payroll charges will be expensed from the effective date going forward.
Past Dated Row(s) = This is the history of previous Earnings Distributions that have since been replaced by new distribution rows. Retroactive changes dated earlier than the current month are not encouraged. Making changes dated before the current month will not move any money that has already been paid out. An expense transfer must be done in OPTRS.
Viewing History: Click the “Include History” button at the bottom of the screen, and use the arrow keys to move forward/backward in a record, to view Earnings Distributions/review the employee's distribution changes.
2. / Earnings Distribution Process reminders:
Distribution changes made in HCM pass to Payroll and will only affect distribution for current and future payrolls.
Recording a retroactive distribution in HCM does not trigger reallocation of expenses already distributed and recorded. Therefore, retroactive changes to earlier than the current month require a Payroll Expense Transfer to move recorded expenses from original distributions to the new distribution (no HCM update is entered).
When changing an employee's distribution, you do not end the previous distribution line(s). By adding a new effective dated Earnings Distribution row, you restate all distributions needed going forward (including any that aren't changing). Essentially, you are recording a new distribution that restates the entire Earnings Distribution for that employee. When the new information passes from HCM to PPS (Payroll System), the new distribution supercedes the old distribution entirely as of the effective date. PPS will automatically end the old distribution lines (as of the day before th effective date) and start charging the new ones, as triggered by the effective dates.
The total distribution % on all 'Regular' pay lines must equal the total Job FTE (Percent of Time of a Full Time Employee) for each calendar day of the appointment. If the distribution % and Job FTE are not equal, or if the Appointment Begin/End Dates and distribution Begin/End Dates don't correspond, you will trigger a warning message when you try to save. If this happens, check the following items and then click save again when the information is correct:
> Review the Job FTE (on the Job Information page) for the total Distribution %.
- Examples of FTE on the Job Information page:
- 1 Full Time FTE appears as 1.000000
- .5 Half Time FTE appears as .500000
> Check the Distribution % (on Earnings Distribution page). It must be entered as a whole number (e.g. 100, not 1.0), and must equal the percentage of Job FTE (as shown on Job Information page).
- Examples of % on Earnings Distribution page:
-100% appears as 100.00
- 50% appears as 50.00
> Check consistency of all dates - Effective Date (on Work Location page) and Begin Date(s) (on Earnings Distribution page) must match. (If there are end dates on the Job Information page, the end dates on Earnings Distribution page should also match.)
3. / Navigation for Earnings Distribution Change is:
Workforce Administration
/ Job Information
/ Job Data
Click the Workforce Administration link.
4. / From the WFA menu, you can navigate directly to the Job Data link by using the full page menu dashboard.
Click the Job Data link.
5. / To update Job Data for an employee, you must first locate the employee record. Searching for an employee can be done by using the displayed search criteria options on this page.
One option is to enter the Employee's ID number and go directly to the employee record you wish to edit.
In this example, we have called up Eric Thomas' employee record 0.
6. / You need to insert a new effective dated row to update Eric's Earnings Distribution. The system will automatically copy some of the existing data into the newly inserted row for your editing and updating.
Click the Add a new row + button at row 1 (Alt+7).
7. / Note: After adding a row, you now have two Work Location rows indicated in the upper right of the page. (To see all the previous rows click Include History at bottom of page.)
The copied row will default today's date as the effective date.
You must replace it with the actual effective date of the Earnings Distribution Change.
8. / In this example, the effective date of Eric Thomas' distribution change is February 1, 2013.
Enter "02/01/13" in the Effective Date field.
9. / Both Action and Reason are required fields for effective dated actions. You must select the appropriate action and reason for your transaction.
You can reference the Action/Reason Codes Job Aid for definitions and when to use each selection; a link to the Job Aid is provided at the end of this lesson.
Click the Drop-down button to the right of the Action field.
10. / Click the Earnings Distribution Change list item.
11. / Next, you will select the appropriate Reason for the distribution change.
12. / In this example, we are recording a new Distribution for Eric Thomas.
Click the Distribution list item.
13. / Click on the Earnings Distribution link at the bottom of the page to enter the new distribution(s).
14. / EARNINGS DISTRIBUTION page
Note: The current distribution(s) is provided as a starting point and the Begin Date of the distribution will either display 'today's date' or the same effective date previously entered when the row was added.
You need to confirm that the displayed Begin Date for the distribution is correct and matches the effective date, or you must update it to the desired effective date.
Note: Begin Date can not be earlier than the Effective Date entered. However, multiple distribution lines may have changing Begin Dates going forward from the Effective Date depending on the need to change distribution destinations to manage various fund sources. (Example: one distribution could be 8/1/09-8/15/09 and the next distribution could pick up 8/16/09 to Indefinite)
The presence of End Dates is most often determined by the nature of the appointment. For employees who are Indefinite on the Job Information page [Career (staff) or Tenured (faculty)]; their distributions are entered without an End Date as they are intended to be in effect until changed.
End Dates are used:
-when an employee is not an Indefinite employee.
-when a distribution (chartstring) ends on a specific date (for indefinite employees, there must be another distribution starting up the day afterwards and continuing indefinitely)
-when a Stipend or other temporary payment (that is not REG pay salary) is being made.
You will verify and change, as appropriate, the data values on each distribution line including Begin Date. Type in an End Date if applicable. Update information for each distribution line on the Job Earnings Distribution page.
Remember, you are 'restating' the entire distribution for this person as of this date.
For multiple distribution lines, click the + button to add additional lines.
In this example, the Begin Date for Eric Thomas' distribution change is 02/01/13; the same as the date used for the 'effective date' of this change when a new data row you added. You do not need to change the Begin Date in this example.
15. / In this example, Eric's new distribution will be split 60% and 40% between two Chartstrings. The first copied distribution line will remain unchanged except it will be reduced from 100% to 60% and then a second distribution line added for the other 40% distribution.
First, you will modify the copied record to reduce the first Distribution to 60%.
16. / Enter "60.00" into the Distribution % field.
No other changes on this line are needed.
17. / Click the Add a new row (by clicking the plus button) to create a second distribution line for the remaining 40% distribution.
18. / In this example, we will click the Copy Fields button to auto copy the data values for you to edit/change. (We could also have typed in all the relevant data.)
19. / This second distribution line for Regular Earnings at 40% will be charged to 51210-19900-13081. Salary Account field will automatically default and should never be changed unless there is a Workstudy.
The copied Earn Code "REG" does not change.
20. / Enter "40.00" into the Distribution % field.
21. / You will now modify the Chartstring on the 2nd distribution line for the appropriate codes to be charged for the 40% distribution.
22. / The Fund for this distribution remains 19900; no change needed.
The Org for the 40% distribution line is to be 13081, PHYSI Academic Office. In this example, enter "13081" for PHYSI Academic Office into the Dept.
23. / Press [Tab] after each entry to confirm the Chartstring.
When you tab out of each Chartstring field, the system updates the screen view with the title of that value and confirms that it is valid. If the field turns red, that means that HCM does not consider that a valid value. You should always confirm the field value titles to assure you have entered the correct values.
In this example salary account defaults to 51210 and we changed the Dept code:
> Account 51210 = Staff Non-Student
> Dept 13081 = PHYSI Academic Office.
24. / You are now ready to Save the two distribution lines you have created for Eric Thomas effective 08/01/09.
Click the Save button at the bottom of the page.
Read through and act on any warning or error message you receive.
When you see the SAVED confirmation message at the top right of the screen you will know your transaction went through.
You can then continue entering other transactions in HCM or sign out if you are done.
25. / Congratulations, you have completed the Earnings Distribution Change lesson.
RESOURCES:
> For transaction support, you can access the Quick Reference Guide (Step Sheets) for this lesson and the full Manual (w/Screen Shots) at http://hrweb.berkeley.edu/hcm/tam/department
> Action Reason Job Aid is located at http://hrweb.berkeley.edu/hcm/wfa/codes-values/action-reason
> For a Composite Fringe Benefit Rates Overview, visit http://smcp.berkeley.edu/FringeBenefitRates/FringeBenefitRateOverview.html
End of Procedure.
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Date Created: 7/20/2009