Best practices for verifying payroll funding and initiating Payroll Expense Transfers
From time to time, a paycheck is processed with incorrect or expired funding. Fortunately, you can use a Payroll Expense Transfer (PET) to update the funding source for a given paycheck.
When using PETs, there are a few best practices to keep in mind to ensure correct accounting, a smooth fiscal year-end and collaboration between departments.
The monthly payroll registers are generally available before the pay date of each pay period. Users should make particular effort to process and post PETs in the same month as the original payroll.
Use the HCM WorkCenter Resources Payroll Register Acct Detail query to download paycheck data to Excel. Then, filter for suspense SpeedTypes and identify any other funding changes.
Removing payroll from suspense clears unnecessary unfunded liability, and smooths effort reporting.
Consistent reallocations in a PET make for easy calculations and funding verification. All earn codes that reflect a position’s monthly salary should reflect the same 100% funding distribution, including earnings, leave, and dock codes. Additional positions and additional pay may have separate funding scenarios.
Use the funding template to submit an updated funding distribution. Does it also apply to the next payroll? Check the box Apply to Future. The next pay period effective date displays. This feature creates a new funding row in the department budget table (DBT) upon clicking save/submit.
Take advantage of comments and attachments that allow for a clean audit trail and less confusion in the future.
When creating a PET, communicate with other units to coordinate funding updates to avoid multiple PETs on the same paycheck by different units.
PETs can use funding with projects in ‘pre-spending,’ ‘open’ and ‘ended’ statuses, but not in ‘reporting’ or ‘closed’ statuses. Reach out to your campus controller’s office or office of grants and contracts or sponsored programs for assistance with individual scenarios.
Sometimes job data is incorrect when a paycheck is created. In order to correct the pay, job data must be updated retroactively. A manually adjusted check is processed in the current pay period for the previous incorrect earnings period. After the manual check adjustment is complete, if a PET is required for manual check adjustments, search by using the employee ID and earnings period. The original and adjusted paychecks will display. The manual adjustment will use the current, corrected job data. Because of this, an account code may change. (i.e., when earnings change to a stipend).
Your campus controller’s office can assist with adjusting account codes appropriately. Does your PET have restricted earn codes or taxes and deductions that require a funding change? Your campus controller’s office can also help with these.
Are you reconciling overpayment returns to a net sum zero? On the PET search page, use the employee ID and earnings period dates to find the original check and checks with the posted returns. Then it is easy to reallocate the overpayment and the returned funds to the same SpeedTypes.
As collaboration across campuses increases, so does cross-campus funding. If a PET is required for a paycheck with cross campus funding, review the job aid and reach out to your campus controller’s office or the System HRGL team for questions or concerns.
Any ePERS effort posting to grants will update after a PET. Employees must re-certify ePERS effort if a PET changed it after certification.
All paycheck earnings should be posted correctly before fiscal year-end on June 30th. Processing timely PETs monthly keeps payroll funding accurate and makes year end close a breeze.
Need extra help?
Additionally, you can find HCM queries here:
- Log into the employee portal.
- Open the CU Resources dropdown menu and click Business Tools.
- Select the HCM tile and choose HCM Community Users from the drop-down menu.
- Click the HCM WorkCenter tile.
- Select the Resources tab and click the query you desire.