Every position that is encumbered has an Encumbrance Definition (Enc Def) similar to the Department Budget Table (DBT) that tells the system what items to encumber and to which ChartString they should be encumbered. This includes certain earnings and certain labor related costs (taxes and deductions). To encumber salaries the system uses information in Job Data for filled positions and Position Data for vacant positions. Maintaining the Enc Def can be a significant effort so the Encumbrance Maintenance (Enc Maint) customization was developed to do that maintain for districts.
As part of the customization districts are now able to define which earnings codes are accrued and which are not. For example, most districts do not want to include retro pay (RRP) in calculating encumbrances. The HCM query M_ENCUMB_TAX_EARNINGS will list your district’s additional earnings that are to be encumbered. The Enc Maint runs after payroll expenses are distributed, and it updates the information in the Enc Def. This new Enc Def information is then used to recalculate and update the encumbrances.
Each July we run the Fiscal Year Baseline Encumbrances in HCM, this is an annual process to establish the fiscal year encumbrances for a district.
Several encumbrance processes are run in HCM after payroll confirm and expense distribution are complete. These processes include the following items: