Salary and Vacation Accrual Example Fiscal Year 2004: Executive Summary

Appendix B
Salary and Vacation Accrual Example

Fiscal Year 2004
Note: An updated version for FY2005 and later is available at
http://ora.stanford.edu/expenditure/supporting_files/App_A_Vacation_Accrual_Ex.doc
Executive Summary
This document explains the relationships between salary, vacation accrual and fringe
benefits, how they are calculated and how they appear on Expenditure Detail Reports.
At the request of end-users we present salary and vacation "gross", so that total salary
appears in the appropriate Salary Expenditure Type, and an offsetting credit appears in
the Vacation Used Expenditure Type when the individual is on vacation. At that time, the
central Vacation Accrual account actually pays the employee's salary. Likewise, the
Vacation Accrual charge is separate from the Fringe Benefit burden. In summary, the
salary charges, vacation credits and burdens function as follows:
+ Salary (excluding overtime) + Salary (including overtime)

– Vacation Used (credit) - Vacation Used (credit)
= Net Salary + Vacation Accrual Charge
x Vacation Accrual Rate = Amount subject to Fringe
x Fringe Benefit Rate
= Vacation Accrual Charge
= Fringe Benefit Charge
Because of the inter-relationships between Kronos, PeopleSoft and Oracle, the amounts
posted for salary, time off, and the vacation and fringe benefit burdens are confusing. The
amounts are generally correct in total (corrections and changes are noted in the body of
this document), but the individual lines posted on the Expenditure Detail Reports are very
difficult to understand. In addition, we have made changes and improvements since we
converted to Oracle, so the transactions appear differently depending on the time frame.
Changes and issues include:

 Mispostings to the Vacation Used Expenditure Types in September and October. The
account (PTA) was correct in total, but transactions appeared in the wrong Expenditure
Type. Controller's Office will correct in February.
 Offsetting entries were misposted for hourly staff from September through
December. Although the entries properly net to zero, they do not appear in the correct
accounts. The accounts are correct in total; the Controller's Office will post correcting
entries in February.
 Overtime should have been exempt from the vacation accrual burden. In addition, all
overtime was recorded in an Expenditure Type labeled for Bargaining Unit overtime.
September 1, 2004 1
Appendix B
Beginning in January overtime is split between Bargaining Unit and non-Bargaining Unit
Expenditure Types. These Expenditure Types are exempt from the Vacation Accrual
burden. Correcting entries to move the overtime to the new codes (and thus reverse
the incorrect vacation accrual charge) are being made in January and February.
 PeopleSoft was able to combine the data sent to Oracle beginning with the January 31
payroll, thus eliminating many of the offsetting debit and credit entries.
This document contains the following sections:
A Few Things to Know

Payroll Expenditure-Item Dates
Burden Calculations and Dates
Correction Related to Overtime
Example Assumptions
Pay-periods for September – October 31:

Salary
Vacation Accrual Charge
Fringe Benefits
Pay-period Including Vacation Time
Salary
Vacation Used Expenditure Type
Fringe benefits
Expenditure Detail Report – Pulling it Together for a Month
A Complication – Multiple PTA Allocation
Expenditure Detail Report – A Month with Multiple PTAs
Pay-periods for November 1 – January 15:

Salary
Fringe Benefits
Pay-periods for January 16 – Future:

Salary
September 1, 2004 2
Appendix B
A Few Things to Know

Payroll Expenditure-Item Dates
Payroll is posted when EARNED, not when PAID. In most cases the expenditure-item date
for payroll is the last day of the pay period. However, there are a few exceptions:
 If a person terminates during a pay-period the date will reflect their last day at work
(when they were paid their final check)
 If an account (PTA) is closed mid-pay period, the date will reflect the last day of the
account and the charges will reflect earnings through that date only
 For regular salaried employees if the last day of the pay period (the 15 th or the last day
of a month) falls on a Saturday or a Sunday the system is recording the Friday before
the pay period end date as the expenditure-item date. (For example, November 15,
2003, was a Saturday, so the expenditure item date was recorded as November 14.)
These dates will apply to their regular salary and their vacation entries.
Charges related to hourly pay, Kronos-generated transactions (including vacation for

hourly employees), GFS, Supplements, Bonuses and other One-time Payments will always be
reflected on the last day of the pay period, regardless of whether it falls on a weekend.
We are investigating whether we can summarize all salary postings to show the last day of
the pay period as the expenditure-item date.
Burden Calculations and Dates

Fringe benefits and the vacation accrual charge are types of "burdens". A burden is a
charge calculated as a percentage applied to the relevant base (in this case, salary). The
way the vacation and fringe benefit charges are calculated is explained below. However,
unlike our legacy system where burdens were calculated all at once during the closing of a
month, in Oracle Financials the burdens are calculated more frequently.
The program calculates the appropriate burden based on the transactions that have been
posted as of the date the burden process is run. The expenditure-item date for the
burden itself is the latest expenditure-item date of all the transactions burdened at that
time. However, transactions may not be posted in expenditure-item date order. Therefore,
the burden on a transaction with an expenditure-item date the same as, or earlier than,
the date the burdening process was last run, will be posted along with the burden on later
transactions and therefore will carry a later date. Because of this, the individual burden
lines displayed on the Expenditure Detail Report may be difficult, if not impossible, to
recalculate by applying the rate to the transactions you think are in the base. However,
you should be able to recalculate the total burden posted to the Expenditure Type
(vacation accrual or fringe) based on the totals posted to the Expenditure Types included
in the base.
September 1, 2004 3
Appendix B
Correction Related to Overtime
At go-live, all overtime was erroneously charged to Expenditure Type 51535, RBE
Bargaining Unit Overtime. In addition, we applied the vacation accrual rate to the overtime
pay. We have since determined this is not correct. In January we opened two Expenditure
Types that are exempt from the vacation accrual charge:
 51527 RBE Non Exempt Overtime
 51537 RBE Bargaining Unit Overtime
We will be transferring the overtime charged to the original Expenditure Type to the new
Type. Non-bargaining corrections for earning code 103 were made in January; the
remaining non-bargaining and bargaining unit charges will be corrected in February. The
entries will automatically reverse the vacation accrual charge.
Example Assumptions
The following example assumptions will be used for all pay periods being reviewed:
John Doe earns $2,000 per pay-period ($48,000 annual salary). John is a non-exempt
employee, and is "regular benefits eligible" (RBE). John's work assignment Org in Labor
Distribution is ABCD, which will now print before his name on the salary expense line. The
Org Code could assist you in identifying John's Labor Scheduler in case changes are
needed to his salary allocation in the future.
Since the Oracle system went live, there have been two major code changes that have
impacted how salary and vacation are reported on the Expenditure Detail Reports. The
first is a change from the Vacation Used Expenditure Type to the Regular Salary
Expenditure Type for Salary on Vacation (SOV) earnings, which was corrected beginning
with the first pay period in November. The second change was the elimination of the
additional SAL credit created by the PeopleSoft system for time-off earning codes
beginning with the second pay period in January.
Select one of the following pay period ranges to review how salary and vacation appeared
on the Expenditure Detail Reports according to the pay periods involved:
September 01 – October 31
November 01 – January 15
January 16 – Future
September 1, 2004 4
Appendix B
Pay-periods for September – October 31:

Salary
On September 22, John was paid the salary he earned between September 1 - 15. Labor
Distribution will process the allocation of his salary costs (100% to one PTA in our
example) as an expense in September.
Salary $2,000.00
This will appear on the September Expenditure Detail Report as follows:

SOURCE ACCT DEPT REF EXP_ITEM SEP-2003 CODE DESCRIPTION
REF DATE ACTUALS
LDACT SAL 12345678-0 15-SEP-2003 2,000.00 51525 ABCD Doe, John

2,000.00 51525 RBE NON EXEMPT
2,000.00 SALARY
In the above example, John is the only employee recorded, so it is easy to see that the
only amount charged to the Expenditure Types is John's total pay. However, if more than
one employee is charged to the same Expenditure Type there is currently no subtotal for
employee, only for the Expenditure Type.

In addition, a charge for the vacation he earned is also recorded as an expense in
September. Vacation earned is calculated based on John’s salary and the appropriate
average rate for his employee type (.0865 for Exempt; .0745 for Non-Exempt and
Bargaining Unit). It is calculated as follows:
Salary $2,000.00
Vacation Rate X 7.45%
Vacation Accrual Charge $ 149.00

SOURCE ACCT REF DEPT EXP_ITEM SEP-2003 CODE DESCRIPTION
REF DATE ACTUALS
BRDN FY04 0.0745 15-SEP-2003 149.00 51715 FB_VA_TGP

149.00 51715 VAC ACCRUAL
NONEXEMPT STAFF
Note that the actual rate is displayed in the Department Reference column, while the
"burden schedule name" appears in the Description column.
September 1, 2004 5
Appendix B
Fringe Benefits
Just as we build up a fund with which to pay Joe's vacation pay, we also need to build up
funding to pay for his fringe benefits while he is on vacation. Therefore, fringe benefits
(regular fringe and TGP – Tuition Grant Program) are applied to the subtotal of salary plus
the vacation accrual. They are calculated as follows:
Salary $2,000.00
Vacation Accrual Charge 149.00
Charges subject to Fringe 2,149.00 $2,149.00
Fringe Rate X 29.0% TGP Rate X 1.2%
Fringe Charge $ 623.21 TGP Charge $ 25.79
These transactions will appear on his PTA Expenditure Detail Report as

follows:
REF DATE ACTUALS

623.21 51750 FRINGE BENEFITS
RBE

TGP
The Total Fringe Benefits appearing on the Expenditure Detail Report are as follows:

Fringe Charge 623.21
TGP Charge 25.79
Total Fringe $ 798.00
This subtotal will appear on his PTA Expenditure Detail Report as follows:
REF DATE ACTUALS
798.00 FRINGE
When added to John's salary of $2,000 the total salaries and fringe are $2,798.
September 1, 2004 6
Appendix B
A Pay-period Including Vacation Time
Salary
In our next example, John receives both Salary and time-off earnings. On October 7, John
was paid the salary he earned for the September 16 – 30 pay period. During the
September 30 pay-period, John's time records reflected the following:
Sick 1 day
Personal Time Off 1 day
Vacation 3 days
Hours worked 6 days
Since Kronos and PeopleSoft pass all of these "Earning Codes" to Oracle, each will appear
in a Payroll Earnings Distribution Report for John for this time period, in addition to his
Labor Schedule amount (total salary). Because of this inter-relationship the system
creates offsetting entries so that the correct net amount (his actual pay) is posted. The
dollar amount allocated for each earning code for a full-time employee is calculated as:
(Annual salary/2080 hours) x (days x 8 hours)
The entries are summarized on the Expenditure Detail Report, such that the total amount
paid to the individual appears in the Salary Expenditure Type, but it is made up of a
number of lines. The dollar amounts by earning code for John are as follows:
Sick $184.62
Personal Time Off $184.62 $369.24
Regular Labor Schedule $2,000.00 $2,000.00
Offsetting Credit * ($923.09)
Total Charged to Salary Expenditure Type $1,446.15
*The $923.09 Offsetting Credit includes $553.85 in vacation (see next section.)

REF DATE ACTUALS
LDACT Multiple 12345678-0 30-SEP-2003 369.24 51525 ABCD Doe, John

LDACT Multiple 12345678-0 30-SEP-2003 2,000.00 51525 ABCD Doe, John
LDACT SAL 12345678-0 30-SEP-2003 (923.09) 51525 ABCD Doe, John
September 1, 2004 7
Appendix B

John's pay for his three days of vacation ($553.85) is actually paid by the central vacation
liability fund. This reserve is built up with the vacation accrual charges and is held
centrally. John's regular PTA receives a credit back for this portion of his salary (this is
included in the $923.09 credit for regular salary.)
Due to the inter-relations of Labor Distribution and Kronos, John's Vacation Used
Expenditure Type received a charge, in the form of Salary on Vacation (SOV) earnings and
an offsetting credit entry Vacation Credit (VCR), thus netting to $0. The offsetting SOV
debit entry should have been charged to the regular salary Expenditure Type (51525 in
this example), but has been posted to the Vacation Used Expenditure Types in error.
While there is no effect on the bottom line of the account, it does make it more difficult
to isolate the full effect of the vacation accrual. We will correct this error for you
through a journal entry in the February for the September 1-15 through the October 16-
31 pay periods.
In September and October, the Vacation Used Expenditure Type will appear as follows on the
Expenditure Detail Report:
REF DATE ACTUALS
LDACT SOV 12345678-0 30-SEP-2003 553.85 51560 ABCD Doe, John

LDACT VCR 12345678-0 30-SEP-2003 (553.85) 51560 ABCD Doe, John
0.00 51560 RBE NON EXEMPT
VAC USED

Again, a charge for the vacation he earned is also recorded as an expense in September
based on John’s salary and the appropriate average rate for his employee type (.0865 for
Exempt; .0745 for Non-Exempt and Bargaining Unit). It is calculated as follows:
Salary $1,446.15

REF DATE ACTUALS

NONEXEMPT STAFF
Note that the actual rate is displayed in the Department Reference column, while the
"burden schedule name" appears in the Description column.
September 1, 2004 8
Appendix B
Fringe Benefits
Fringe benefits (regular fringe and TGP – Tuition Grant Program) are applied to the
subtotal of salary plus the vacation accrual. They are calculated as follows:
Salary $1,446.15
These transactions will appear on his PTA Expenditure Detail Report as

follows:
REF DATE ACTUALS

RBE

TGP

TGP Charge 18.65
REF DATE ACTUALS
577.02 FRINGE
When added to John's salary of $1,446.15 the total salaries and fringe are $2,023.17, as
compared to the total charge of $2,798 when John used no vacation in the first pay period
in September.
Note: Because the Salary on Vacation (SOV) earnings were erroneously recorded in the
"Vacation Used" Expenditure Type (51560), there was no associated burden charges or
credits. The correct burden was calculated against the net amount of salary.
September 1, 2004 9
Appendix B
The following example shows how John's salary for the entire month of September
appears on his PTA Expenditure Detail Report. We have inserted references and formulas
in the "Department Reference" and "Expenditure Item Date" columns to aid in
understanding the calculations:

REF DATE ACTUALS
LDACT SAL 12345678- 15-SEP-2003 2,000.00 51525 ABCD Doe, John

0
LDACT Multiple 12345678- 30-SEP-2003 369.24 51525 ABCD Doe, John
0
LDACT Multiple 12345678- 30-SEP-2003 2,000.00 51525 ABCD Doe, John
0
LDACT SAL 12345678- 30-SEP-2003 (923.09) 51525 ABCD Doe, John
0
A1 (A = Salary 3,446.15 51525 RBE NON EXEMPT
from Labor
Distribution) 1
LDACT VCR 12345678- 30-SEP-2003 (553.85) 51560 ABCD Doe, John

0
LDACT SOV 12345678- 30-SEP-2003 553.85 51560 ABCD Doe, John
0
B (B= Vacation 0.00 51560 RBE NON EXEMPT
Credit from VAC USED
Labor Distrib)
C (C= A+B) 3,446.15

(net salary)

D (D=rate x C) 256.74 51715 VAC ACCRUAL
NONEXEMPT STAFF

E [E = rate x 1,073.84 51750 FRINGE BENEFITS

(C+D)] RBE

F [F = rate x 44.44 51770 FRINGE BENEFITS
(C+D)] TGP
G (G = D + E + 1,375.02 FRINGE
F)
H (H = C + G) 4,821.17 TOTAL SALARIES

AND FRINGE
1
References and formulas presented to aid in understanding calculations
September 1, 2004 10
Appendix B
A Complication - Multiple PTA Allocation
Let’s change our assumptions and consider what would happen if John was paid from more
than one PTA, i.e., he had more than one Labor Schedule line, for the September 16-30 pay
period.
Whenever a salaried employee takes vacation the PeopleSoft payroll system must generate
a credit (negative) SAL entry to offset the employee’s vacation pay. This is to ensure the
employee is not overpaid (if the Credit was not generated the employee would receive pay
for both his regular salary and vacation.)
The SAL credit is posted to the default account from Kronos, where the vacation was
initially recorded. This results in an over-credit to this account when an employee has
multiple Labor Schedule lines. This does not impact employees with only one labor schedule
line, when the single credit is correct.
As in our original example, John Doe earns $2,000 per pay period. During the September 16-30 pay
period, John took 3 days of vacation, earning $553.85 in vacation. But in this case, let's see what happens
when John has the following Labor Schedule:
Project Task Award Exp Type Org %
1010101 1 AAAAA 51525 ZZZZ 20
1010102 1 BBBBB 51525 ZZZZ 60
1010103 1 CCCCC 51525 ZZZZ 20
The $553.85 SAL credit associated with his vacation is posted to the PTA with the
highest % (this is the Default Account), in this case the PTA on the second line. However,
the SAL credit should be spread across all 3 accounts on the employee's Labor Schedule.
In order to correct the ‘over-credit’ of SAL to the Default Account, and distribute the
credit correctly across all accounts, special correction entries are posted for each payroll
pay period between September 1 – January 15. These special entries reverse the initial
SAL credit associated with vacation – by debiting the default account for the full salary
related to vacation – and then crediting all accounts on the employee’s labor schedule,
according to the percentage of each line. As of January 16, 2004, this step is not needed
as we have corrected the interface with PeopleSoft.
Appendix B
John Doe ‘s initial total earnings were distributed as follows:
Earning Amount Project Task Award Exp Type Note
Code
Multiple 400.00 1010101 1 AAAAA 51525 #1
Multiple 1,938.48 1010102 1 BBBBB 51525 #2
Multiple 400.00 1010103 1 CCCCC 51525 #1
SAL (1,292.33) 1010102 1 BBBBB 51525 #3
Total $1,446.15
VCS 553.85 Central Vacation Liability Fund
After the special entries are made, John Doe’s earnings are ‘redistributed’ as follows (the special entries
are in bold):
Code
Multiple 400.00 1010101 1 AAAAA 51525 #1
Multiple 1,938.48 1010102 1 BBBBB 51525 #2
Multiple 400.00 1010103 1 CCCCC 51525 #1
SAL (1,292.33) 1010102 1 BBBBB 51525 #3
SAL 553.85 1010102 1 BBBBB 51525 #4
SAL (332.31) 1010102 1 BBBBB 51525 #5
SAL (110.77) 1010101 1 AAAAA 51525 #5
SAL (110.77) 1010103 1 CCCCC 51525 #5
Total $1,446.15
VCS 553.85 Central Vacation Liability Fund
#1 20% of Regular Salary pay, all other earnings for the period: Sick Time and Personal Time-off were
distributed to the Default Account entered in Kronos (PTA #2). With the exception of vacation
which was charged to the Central Vacation Liability Fund.
#2 60% of Regular Salary pay plus all time-off earnings for the period: Sick Time and Personal Time-off.
These earnings are all distributed to the Default Account entered in Kronos that also receives the
corresponding SAL Credit.
#3 Original Salary Credit generated by PeopleSoft Payroll (all posted to the "default" account)
#4 Debit side of reversing entry created by special entries for vacation.
#5 Credit side of special entries to distribute credit correctly across all accounts according to the
employee’s labor schedule.
You will notice, with the special entries, a SAL credit for his vacation earnings is
distributed to each account according to John’s Labor Schedule in Oracle.
It is important to understand that the SAL credit entry created by the PeopleSoft payroll
is not the same as the Vacation Credit (or VCR) generated for reporting purposes in
Oracle. The SAL credit from PeopleSoft merely offsets the "pay" related to vacation or
other time-off earnings to ensure that the individual is not overpaid.
Appendix B
The special entries are only needed for vacation transactions because these charges are
sent directly to the Central Vacation Accrual Account. Charges for other time-off codes
are sent to the Default Accounts as they are entered in Kronos and therefore are off-set
by the correct amount in SAL credit.
Appendix B
This example shows how John's September salary appears on Expenditure Detail Reports
when he is paid from more than one PTA for the September 16-30 pay period. We have
inserted references and formulas in the "Department Reference" and "Expenditure Item
Date" columns to aid in understanding the calculations:
Project: 1010102 T: 1 A: BBBBB (100% for 9/1-15; 60% for 9/16-30)

REF DATE ACTUALS
LDACT SAL 12345678-0 15-SEP-2003 2,000.00 51525 ABCD Doe, John

LDACT Multiple 12345678-0 30-SEP-2003 1,938.48 51525 ABCD Doe, John
LDACT SAL 12345678-0 30-SEP-2003 (1,292.33) 51525 ABCD Doe, John
LDACT SAL 12345678-0 30-SEP-2003 553.85 51525 ABCD Doe, John
from Labor
Distribution) 1

Labor Distrib)
C (C= A+B) 2,867.69

(net salary)

NONEXEMPT STAFF

E [E = rate x 893.59 51750 FRINGE BENEFITS

(C+D)] RBE

(C+D)] TGP
G (G = D + E + F) 1,144.21 FRINGE

AND FRINGE
1
Appendix B
Project: 1010101 T: 1 A: AAAAA
(20% of John’s Salary is paid from this account)

REF DATE ACTUALS
LDACT Multiple 12345678-0 30-SEP-2003 400.00 51525 ABCD Doe, John

A1 (A = Salary 289.23 51525 RBE NON EXEMPT
from Labor
Distribution) 1

Labor Distrib)
C (C= A+B) 289.23

(net salary)

NONEXEMPT STAFF

(C+D)] RBE

(C+D)] TGP
G (G = D + E + F) 115.41 FRINGE
H (H = C + G) 404.64 TOTAL SALARIES

AND FRINGE
1
The Expenditure Detail Report for Project: 1010103 Task: 1 Award: CCCCC (which also is
allocated 20% of John’s Salary) would look identical to the one above.
Appendix B
Pay-periods for November 1 – January 15:

Salary
Beginning with the November 1-15 pay period, the Salary on Vacation (SOV) earnings were
correctly linked according to the employee’s Regular Salary Expenditure Type. Using the
same vacation example assumptions (same amount of vacation and regular salary earnings)
used for September, we can review how this change impacted the Expenditure Detail
Report during the November – January 15 pay periods.
On January 7, John was paid the salary he earned for the December 16 – 31 pay period.
During the December 31 pay-period, John's time records reflected the following:
Sick 1 day
University Holidays 2 days (not including the extra day off)
Vacation 3 days
Hours worked 4 days (includes the extra day off)
The dollar amounts by earning code for John are as follows:
Sick $184.62
University Holidays $369.23 $738.47
Personal Time Off $184.62
Salary on Vacation $553.53
Regular Labor Schedule $2,000.00 $2,553.53
Offsetting Credit ($1,292.33)
This will appear on the December Expenditure Detail Report as follows:

SOURCE ACCT REF DEPT EXP_ITEM DEC-2003 CODE DESCRIPTION
REF DATE ACTUALS
LDACT Multiple 123456 31-DEC-2003 738.47 51525 ABCD Doe, John

LDACT Multiple 123456 31-DEC-2003 2,553.85 51525 ABCD Doe, John
LDACT SAL 123456 31-DEC-2003 (1,292.32) 51525 ABCD Doe, John
Notice that John’s vacation pay is now included in his regular salary earnings (the second
line above.)

John's pay for his three days of vacation ($553.85) is actually paid by the central vacation
liability fund. This reserve is built up with the vacation accrual charges and is held
Appendix B
centrally. John's regular PTA receives a credit back for this portion of his salary and the
corresponding debit is charged to his regular salary Expenditure Type as seen above.
Salary $2,000.00
Vacation Pay (553.85)
Net Salary $ 1,446.15
This credit is recorded in the "Vacation Used" Expenditure Type.
In December, the Vacation Used Expenditure Type will appear as follows on the Expenditure Detail
Report:
REF DATE ACTUALS
LDACT VCR 123456 31-DEC-2003 (553.85) 51560 ABCD Doe, John

(553.85) 51560 RBE NON EXEMPT
VAC USED
The total salary on the December Expenditure Detail Report will appear as follows:
REF DATE ACTUALS
1,446.15 SALARY

Once again, the charge for the vacation John earned is also recorded as an expense in
December. It is calculated as follows:
Net Salary $1,446.15

The transactions are actually calculated and posted in two parts, first based on the total
salary charged to the Salary Expenditure Type, then against the credit appearing in the
Vacation Used Expenditure Type.
This will appear on the December Expenditure Detail Report as follows:

REF DATE ACTUALS
BRDN FY04 0.0745 31-DEC-2003 149.00 51715 FB_VA_TGP

BRDN FY04 0.0745 31-DEC-2003 (41.26) 51715 FB_VA_TGP
NONEXEMPT STAFF
Appendix B
The amounts posted to the Vacation Accrual Expenditure Type are calculated based on the
totals posted to the other Types for the pay period, not on a per person basis. If the PTA
has more than one person's activity posted to the Salary Expenditure Type or the
Vacation Used Expenditure Type they are added together before the calculation is
performed.
Fringe Benefits
The regular fringe benefits transactions related to John's December 31 pay are also
calculated on his net salary as follows:
Net Salary $1,446.15

As noted above, the transactions are actually calculated and posted in two parts, first
based on the total salary charged to the RBE Salary Expenditure Types, then against the
credit appearing in the Vacation Used Expenditure Types.
These transactions will appear on his December Expenditure Detail Report as follows:
REF DATE ACTUALS

RBE

TGP

TGP Charge 18.65
Appendix B
REF DATE ACTUALS
577.02 FRINGE
When added to John's net salary of $1,446.15 the total salaries and fringe are $2,023.17.
Notice there was no difference between the bottom line for the September 16-30 pay
period and the December 16-31 pay period where an equal amount of vacation was used.
Appendix B
The following example shows how John's salary for the entire month of December appears
on his PTA Expenditure Detail Report (assuming it is all allocated to one PTA). For the
December 1-15 pay period, John took no vacation and had no time-off.
SOURCE ACCT DEPT REF EXP_ITEM DEC-2003 CODE DESCRIPTION

REF DATE ACTUALS
LDACT SAL 12345678-0 15-DEC-2003 2,000.00 51525 ABCD Doe, John

LDACT Multiple 12345678-0 31-DEC-2003 738.47 51525 ABCD Doe, John
LDACT Multiple 12345678-0 31-DEC-2003 2,553.85 51525 ABCD Doe, John
LDACT SAL 12345678-0 31-DEC-2003 (1,292.32) 51525 ABCD Doe, John
from Labor
Distribution) 1
LDACT VCR 12345678-0 31-DEC-2003 (553.85) 51560 ABCD Doe, John

B (B= Vacation (553.85) 51560 RBE NON EXEMPT
Labor Distrib)
C (C = A + B) 3,446.15 SALARY
(net salary)

D (D = rate x C) 256.74 51715 VAC ACCRUAL
NONEXEMPT STAFF

E [E = rat-e x 1,073.84 51750 FRINGE BENEFITS
(C+D)] RBE

(C+D)] TGP
G (G = D + E + F) 1,375.02 FRINGE

AND FRINGE
1
Appendix B
Pay-periods for January 16 - Future:

Salary
The credit SAL entry generated by PeopleSoft to offset an employee’s time-off codes
(including Holidays, Vacation, Sick, etc.) is now netted against the employee’s regular salary
earnings prior to being processed through the Oracle system. Using the same example
assumptions (same amount of vacation and regular salary earnings) we have been using, and
assuming John’s earnings were charged to more than one PTA, we can review how this
change impacted the Expenditure Detail Report during the January 16 -31 and future pay
periods.
Sick 2 day
University Holidays 1 day
Vacation 3 days
Hours worked 4 days
The entries are summarized on the Expenditure Detail Report, such that the total earnings
amount paid to the individual appears in the Salary Expenditure Type, but it is made up of
a number of lines. The dollar amounts by earning code for John are as follows:
Sick $184.62
University Holidays $184.62
Personal Time Off $369.24
Salary on Vacation $553.86
Salary (net of credits) $707.66 $2,000.00
John has the following Labor Schedule:

Project Task Award Exp Type Org %
1010101 1 AAAAA 51525 ZZZZ 20
1010102 1 BBBBB 51525 ZZZZ 60
1010103 1 CCCCC 51525 ZZZZ 20
Appendix B
John’s total earnings are distributed as follows:
Code
Multiple 400.00 1010101 1 AAAAA 51525 #1
Multiple 1,200.00 1010102 1 BBBBB 51525 #2
Multiple 400.00 1010103 1 CCCCC 51525 #1
Total $2,000.00
#1 20% of John’s total earnings including his time-off earnings which were previously all charged to the
PTA in line 2, his Kronos Default Account.
#2 60% of John’s total earnings
Compare this "logical" presentation to the multiple transactions required to achieve the
same net results in previous months. Progress has been made!
The vacation accrual charge and fringe benefits are calculated by the same methods used
in prior months (see earlier examples)
Appendix B
The following example shows how John's January salary appears on his PTA Expenditure
Detail Report when he is paid from more than one PTA for the January 16-31 pay period.
(These transactions will be dated January 30, because January 31 was a Saturday.) For
the January 1-15 pay period, 100% of John’s salary was paid from the 1010102-1-BBBBB:
Project: 1010102 T: 1 A: BBBBB (100% for 1/1-15; 60% for 1/16-31)
SOURCE ACCT DEPT REF EXP_ITEM JAN-2004 CODE DESCRIPTION

REF DATE ACTUALS
LDACT SAL 12345678-0 15-JAN-2004 2,000.00 51525 ABCD Doe, John

LDACT Multiple 12345678-0 30-JAN-2004 1,200.00 51525 ABCD Doe, John
from Labor
Distribution) 1
LDACT VCR 12345678-0 30-JAN-2004 (332.31) 51560 ABCD Doe, John

Labor Distrib)
C (C= A+B) 2,867.69

(net salary)
BRDN FY04 0.0745 15-JAN-2004 149.00 51715 FB_VA_TGP

NONEXEMPT STAFF

(C+D)] RBE

(C+D)] TGP
G (G = D + E + F) 1,144.21 FRINGE

AND FRINGE
1
Appendix B
Project: 1010101 T: 1 A: AAAAA
(20% of John’s Salary is paid from this account)
SOURCE ACCT DEPT REF EXP_ITEM JAN-2004 CODE DESCRIPTION

REF DATE ACTUALS
LDACT Multiple 12345678-0 30-JAN-2004 400.00 51525 ABCD Doe, John

A1 (A = Salary 400.00 51525 RBE NON EXEMPT
from Labor
Distribution) 1
LDACT VCR 12345678-0 30-JAN2-004 (110.77) 51560 ABCD Doe, John

Labor Distrib)
C (C= A+B) 289.23

(net salary)

NONEXEMPT STAFF

(C+D)] RBE

(C+D)] TGP
G (G = D + E + F) 115.41 FRINGE
H (H = C + G) 404.64 TOTAL SALARIES

AND FRINGE
1
The Expenditure Detail Report for Project: 1010103 Task: 1 Award: CCCCC (which also is
allocated 20% of John’s Salary) would look identical to the one above.
Note: As mentioned earlier, the 51535 Bargaining Unit Overtime Expenditure Type was
erroneously charged vacation accrual burden. Beginning with the January payrolls, this
Expenditure Type will no longer be used. The new Expenditure Types, 51527 and 51537, do
not receive vacation burden. Therefore, due to the multiple adjustments made between
the overtime Expenditure Types, you may see a negative vacation accrual entry for
January 15. This may recur in February as we complete the correcting entries.

Salary and Vacation Accrual Example Fiscal Year 2004: Executive Summary

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Appendix B

Salary and Vacation Accrual Example

+ Salary (excluding overtime) + Salary (including overtime)

Changes and issues include:

This document contains the following sections:

A Few Things to Know

Pay-periods for September – October 31:

Pay-periods for November 1 – January 15:

Pay-periods for January 16 – Future:

A Few Things to Know

Charges related to hourly pay, Kronos-generated transactions (including vacation for

Burden Calculations and Dates

Pay-periods for September – October 31:

This will appear on the September Expenditure Detail Report as follows:

LDACT SAL 12345678-0 15-SEP-2003 2,000.00 51525 ABCD Doe, John

Vacation Accrual Charge

This will appear on the September Expenditure Detail Report as follows:

BRDN FY04 0.0745 15-SEP-2003 149.00 51715 FB_VA_TGP

These transactions will appear on his PTA Expenditure Detail Report as

BRDN FY04 0.29000 15-SEP-2003 623.21 51750 FB_VA_TGP

BRDN FY04 0.01200 15-SEP-2003 25.79 51770 FB_VA_TGP

Vacation Accrual Charge $ 149.00

(Annual salary/2080 hours) x (days x 8 hours)

Total Charged to Salary Expenditure Type $1,446.15

This will appear on the September Expenditure Detail Report as follows:

LDACT Multiple 12345678-0 30-SEP-2003 369.24 51525 ABCD Doe, John

Vacation Used Expenditure Type

LDACT SOV 12345678-0 30-SEP-2003 553.85 51560 ABCD Doe, John

Vacation Accrual Charge

This will appear on the September Expenditure Detail Report as follows:

BRDN FY04 0.0745 30-SEP-2003 107.74 51715 FB_VA_TGP

These transactions will appear on his PTA Expenditure Detail Report as

BRDN FY04 0.29000 30-SEP-2003 450.63 51750 FB_VA_TGP

BRDN FY04 0.01200 30-SEP-2003 18.65 51770 FB_VA_TGP

Vacation Accrual Charge $ 107.74

SOURCE ACCT DEPT REF EXP_ITEM SEP-2003 CODE DESCRIPTION

LDACT SAL 12345678- 15-SEP-2003 2,000.00 51525 ABCD Doe, John

LDACT VCR 12345678- 30-SEP-2003 (553.85) 51560 ABCD Doe, John

C (C= A+B) 3,446.15

BRDN FY04 0.0745 15-SEP-2003 149.00 51715 FB_VA_TGP

BRDN FY04 0.29000 15-SEP-2003 623.21 51750 FB_VA_TGP

E [E = rate x 1,073.84 51750 FRINGE BENEFITS

BRDN FY04 0.01200 15-SEP-2003 25.79 51770 FB_VA_TGP

H (H = C + G) 4,821.17 TOTAL SALARIES

VCS 553.85 Central Vacation Liability Fund

VCS 553.85 Central Vacation Liability Fund

#4 Debit side of reversing entry created by special entries for vacation.

Project: 1010102 T: 1 A: BBBBB (100% for 9/1-15; 60% for 9/16-30)

SOURCE ACCT DEPT REF EXP_ITEM SEP-2003 CODE DESCRIPTION

LDACT SAL 12345678-0 15-SEP-2003 2,000.00 51525 ABCD Doe, John

LDACT VCR 12345678-0 30-SEP-2003 (332.31) 51560 ABCD Doe, John

C (C= A+B) 2,867.69

BRDN FY04 0.0745 15-SEP-2003 149.00 51715 FB_VA_TGP

BRDN FY04 0.29000 15-SEP-2003 623.21 51750 FB_VA_TGP

E [E = rate x 893.59 51750 FRINGE BENEFITS

BRDN FY04 0.01200 15-SEP-2003 25.79 51770 FB_VA_TGP

H (H = C + G) 4,011.90 TOTAL SALARIES

SOURCE ACCT DEPT REF EXP_ITEM SEP-2003 CODE DESCRIPTION

LDACT Multiple 12345678-0 30-SEP-2003 400.00 51525 ABCD Doe, John

LDACT VCR 12345678-0 30-SEP-2003 (110.77) 51560 ABCD Doe, John

C (C= A+B) 289.23

BRDN FY04 0.0745 30-SEP-2003 21.55 51715 FB_VA_TGP

BRDN FY04 0.29000 30-SEP-2003 90.13 51750 FB_VA_TGP