Fiscal Year 2017 Payroll baseline encumbrances – IMPORTANT, PLEASE REVIEW

posted Jul 20, 2016, 10:12 AM by Peyri Herrera
The MITI Team has begun processing the July payroll which is the first payroll of the new fiscal year. The team will run the process to calculate and post the 2017 fiscal year baseline encumbrances and will then process payroll distribution and run the encumbrance maintenance process to relieve and adjust encumbrance amounts based on the current month’s payroll data. The FY baseline encumbrance is based in part on July data (for earnings) and in part on June date (for other earnings, taxes, and deductions). The encumbrance maintenance process will result in updated encumbrances based solely on the 2017 data.

FY Baseline Encumbrances: Before the July payroll transactions are posted a process will be run to calculate baseline encumbrances. The system calculates FY baseline encumbrances for earnings as well as for additional earning, deductions, and taxes. These FY baseline encumbrances should be posted in PeopleSoft Finance around July 21, 2016.
  • Earnings Encumbrances: The calculation of FY baseline encumbrances for earnings is based on the latest information for each position and each employee’s job record assigned to that position. Any changes made to a position for the 2017 fiscal year will be reflected in the encumbrances for earnings.

  • Other Encumbrances: The calculation of FY baseline encumbrances for additional earnings, deductions, and taxes are based on the amounts paid during the last payroll (June 2016). Any changes made to a position for the 2017 fiscal year will not be reflected in the FY baseline encumbrances for additional earnings, deductions, and taxes. 
Encumbrance Maintenance: FY baseline encumbrances will be adjusted as part of the normal monthly payroll distribution processes. Encumbrances are relieved based on what was paid plus we run a separate encumbrance maintenance program that updates encumbrances to reflect what should be encumbered based on the current month’s payroll distribution. In July the encumbrance maintenance process will update encumbrances that were calculated during the baseline process to reflect 2017 changes to funding sources as well as some improvements we are implementing to create a more accurate calculation. The encumbrance maintenance should be posted in PeopleSoft Finance by the end of the month.