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Payrolls that cross fiscal years
If your pay period at the end of your fiscal year is split with some of the days worked in the old fiscal year and some days worked in the new fiscal year, a batch(es) should be entered for the days worked in the old fiscal year and a batch(es) should be entered for the days worked in the new fiscal year. If your agency charges any type of leave when earned, you will be able to process separate batches through Leave Processing in order to calculate leave balances as of the last day of your fiscal year.
- Enter a timesheet batch(es) for the days the employees worked in the old fiscal year using the last date of the fiscal year for the ending period of this timesheet batch. All batches must have the same period ending date.
- Enter a timesheet batch for the days the employees worked in the new fiscal year using the pay period ending date.
- During this process, the Print Leave Report button should NOT be clicked. The Year End Leave Accrual button will be used.
- In Payroll, Processing, Leave Balance Processing, select Setup Leave Assumptions tab. Make sure that all classes have a P for prorated under the Prorated/Fixed column in the matrix. If your personnel policies state that only a certain number of leave hours can be carried forward to the new fiscal year for all employees, you also need to select True under Max and Class and enter the Max Hours that can be carried forward to the new fiscal year. Make sure to go back to the Setup Leave Assumptions tab and change the P/F column to what it was.
2. Select the batch(es) for the old fiscal year and click on the Year End Leave Accrual button. If asked how many hours are in the pay period, Enter the total hours for this pay period, not just the hours worked in this timesheet batch. It will calculate the prorated earnings for the time worked in this timesheet batch, record leave taken during this time period and show the balance as of the last day of the fiscal year. At this point, if you want to run the Cost Allocation menu for the last month of your fiscal year, you will be able to choose the last day of the fiscal year to use in calculating the accrued leave. If you set up the Max Hours to be carried forward at year end, remember to change the True to False under both Max and Class and change the Max Hours to zero under Leave Balance Processing, Setup Leave Assumptions after the old fiscal year timesheet batch(es) have been processed via the Year End Leave Accrual Button.
3. When you are ready to process leave balances using the new fiscal year timesheet batch(es) for this pay period, select the batch(es) and click on Year End Leave Accrual. The opening balances will be the ending balances from the previous leave balance report. Earnings will be calculated, the leave taken recorded and the balance shown as of the last day of the pay period. On the Setup Leave Assumptions tab, if the check box “Exceed earning hours in the employee master file” is not checked, it will take the earning amount in the employee file minus the amount of prorated earnings it gave each employee on the 1st timesheet batch and the balance is the amount earned on the 2nd timesheet batch.
3. When you are ready to process leave balances using the new fiscal year timesheet batch(es) for this pay period, select the batch(es) and click on Year End Leave Accrual. The opening balances will be the ending balances from the previous leave balance report. Earnings will be calculated, the leave taken recorded and the balance shown as of the last day of the pay period. On the Setup Leave Assumptions tab, if the check box “Exceed earning hours in the employee master file” is not checked, it will take the earning amount in the employee file minus the amount of prorated earnings it gave each employee on the 1st timesheet batch and the balance is the amount earned on the 2nd timesheet batch.
Note: Once you have completed the Year End leave accrual activities, you may need to go back and re-print the Leave Balance Report by site or department for the period ending at the end of the previous fiscal year. Should that be the case, select Prior Leave Balance Reports tab, select the order in which you would like the report sorted and choose the desired ending period.
Payroll Processing:
Each FY timesheet batches for this pay period will be available for selection. The stubs will reflect the total of leave earned and taken from the two timesheet batches and the balances as of the last day of the pay period.
Payroll GJ:
You will need to create a general journal entry debiting 50000 Salaries and crediting your accrued salaries payable liability account for the amount of the OLD fiscal year timesheets. This entry will subsequently be reversed in the new fiscal year.
If your agency does not charge any type of leave when earned, you will follow your normal leave processing procedures and select all timesheet batches for the pay period.
If your agency does not accrue the cost of any leave when earned, however you have a maximum number of hours that can be carried over, the system can help you manage your leave balances at year end. Follow the instructions below:
In Tools\Cost Allocation Setup\Leave Allocation you should have the Accrue box checked with an Accrue Rate of 0% for the particular leave type. (This will make the accrual button available.) In Leave Balance Processing, select the Setup Leave Assumptions tab. Make sure that all classes have a P for prorated under the Prorated/Fixed column in the matrix. Then select True under Max, True under Class and enter the Max Hours that can be carried forward to the new fiscal year.
Remember to change the True to False under Max and Class and change the Max Hours to zero under Leave Balance Processing, Setup Leave Assumptions after the old fiscal year timesheet batch(es) have been processed via the Year End Leave Accrual Button.
Payroll Processing:
Each FY timesheet batches for this pay period will be available for selection. The stubs will reflect the total of leave earned and taken from the two timesheet batches and the balances as of the last day of the pay period.
Payroll GJ:
You will need to create a general journal entry debiting 50000 Salaries and crediting your accrued salaries payable liability account for the amount of the OLD fiscal year timesheets. This entry will subsequently be reversed in the new fiscal year.
If your agency does not charge any type of leave when earned, you will follow your normal leave processing procedures and select all timesheet batches for the pay period.
If your agency does not accrue the cost of any leave when earned, however you have a maximum number of hours that can be carried over, the system can help you manage your leave balances at year end. Follow the instructions below:
In Tools\Cost Allocation Setup\Leave Allocation you should have the Accrue box checked with an Accrue Rate of 0% for the particular leave type. (This will make the accrual button available.) In Leave Balance Processing, select the Setup Leave Assumptions tab. Make sure that all classes have a P for prorated under the Prorated/Fixed column in the matrix. Then select True under Max, True under Class and enter the Max Hours that can be carried forward to the new fiscal year.
Remember to change the True to False under Max and Class and change the Max Hours to zero under Leave Balance Processing, Setup Leave Assumptions after the old fiscal year timesheet batch(es) have been processed via the Year End Leave Accrual Button.
