FN - Encumbrance Maintenance - Balance Not Correct or Doesn't Exist

GENERAL DESCRIPTION:

This document shows how to research and manually calculate encumbrances. Note: Encumbrance balance variations are often a result of the user calculating the encumbrance using a formula different from the HRS formula.

PROCESS CONSIDERATIONS:
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PROCEDURE STEPS:

A. Review and Compare Encumbrance Balances

1. Identify the Employee Name, Empl ID, Empl Record and full funding string to review.
2. Log into WISDM and select your Business Unit
  • Navigate to: Main Menu > Payroll > Encumbrance Search
  • Search for the Employee Name or Empl ID, and Empl Record
  • Note the encumbrance balance
3. Log into HRS
  • Navigate to: Main Menu > Reporting Tools > Query > Query Manager or Viewer
  • Search for and run the following public query:  UW_FI_ENCUMB_BYEMPLID
    •  This query provides the HRS encumbrance balance
4. Compare the HRS encumbrance balance to the WISDM balance and confirm that the balances match.
  • Note – HRS encumbrance balance should always agree to WISDM balance.
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B. Encumbrance Balance Does Not Exist or Incorrect

1. Confirm Encumbrance Section information exists
2. Confirm “Standard Hours” >= 4.0 hours and/or "FTE" >= 0.10
3. Confirm “Encumbrance Override” box is not checked
4. If everything above looks okay, enter a new funding row using the same Effective Date and funding source as the most recent entry.
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C. How to Manually Calculate Encumbrances

1. Obtain the following information from Job Data and Budget Funding Data Entry, using the following HRS navigation paths:
      • FTE:  Job Information tab, Standard Hours section
      • Pay Basis: Job Information tab, Job Information section
      • Compensation Rate: Compensation tab, Compensation section
2. Determine how many calendar days remain to be paid in the current fiscal year for the employees Pay Group.
Review Paycheck
3. Encumbrance Calculation Formula for A-Basis (monthly) employees:
a-basis calculation
Example:  A .50 FTE A-Basis employee with a monthly compensation rate of $9,427.25 charged 75% to 101-030500-1 and 25% to 101-481505-2 with 259 remaining calendar days would calculate encumbrance as:
a-basis calculation 

a-basis calculation
Note: for Calendar Days Remaining in FY, if calculating encumbrance effective 10/15/20XX, there are 259 calendar days through 6/30/20XX.
4. Encumbrance Calculation Formula for C-Basis (academic) employees:
c-basis calculation
Example:  A .50 FTE C-Basis employee with a monthly compensation rate of $5,370.55 charged 75% to 101-030500-1 and 25% to 101-481505-2 with 144 remaining calendar days would calculate encumbrance as:
c-basis calculation
c-basis calculation
Note: for Calendar Days Remaining in FY, if calculating encumbrance effective 1/1/20XX, there are 144 calendar days through the end of the academic year ending on 5/24/20XX (academic end dates vary by institution).
5. Encumbrance Calculation Formula for H-Basis (hourly) employees:
h-basis calculation
Example:  An H-Basis employee with 32 standard hours and an hourly compensation rate of $20.4350 charged 75% to 101-030500-1 and 25% to 101-481505-2 with 257 remaining calendar days would calculate encumbrance as:
h-basis calculation

h-basis calculation

Note: for Calendar Days Remaining in FY, if calculating encumbrance effective 10/15/20XX, there are 257 calendar days through the end of the last day of the pay period in fiscal year on 6/28/20XX.
6. HRS encumbrance calculation formulas vs. user expectations.
HRS calculates encumbrances using a formula different from most user’s expectations, which may be addressed as Service Center resources become available.

Example:  A 1.00 FTE A-Basis employee with a monthly compensation rate of $5,000.00 charged 100% to UWSYS-136-601000-1 would have encumbrance calculated as follows as of 7/31:

HRS Balance - {[1.00 FTE X ( ($5,000.00 *12)/365 )] x 334} x 100% Funding = $54,904.11

Actual Balance - At the end of July, the employee was only paid $5,000.00, resulting in an encumbrance balance of $55,000 ($60,000 annual encumbrance - $5,000 of actual pay).

Difference between Actual ($55,000.00) and HRS ($54,904.11) balances = $95.89.  Throughout the year, the difference between Actual and HRS will change based on the number of days remaining (instead of months remaining).
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ADDITIONAL RESOURCES

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Related Links:

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