PA03 Payroll Accounting, Encumbering

Business Processes Managed by Accounting Services

Additional Encumbering Method for Sponsored Projects

Unlike encumbering on non-sponsored funds, based on the University's fiscal year, payroll encumbering on Sponsored projects is based on the Project's budget period end date. Functionality is provided to override the budget/project period end date for encumbering purposes, should a department prefer to calculate their sponsored payroll encumbrances on a different basis. The systems logic for selecting the encumbrance end date is as follows, reflecting the order of precedence:

  1. Project End Date Override, if it exists and is active;
  2. Current Budget Period End Date, if no active Project End Date Override exists;
  3. Project End Date, if the above two situations do not apply.

A budget period is determined to be current based on the day the encumbering run occurs. Encumbering runs always occur the night of a pay date. Encumbering may also occur on a daily basis for employee job records that have changed between pay cycles, for example, an existing employee was paid on two sponsored project and their payroll distribution was changed to reflect being paid on three sponsored projects.

The Project End Date Override page can be found in HRMS at:

UM Payroll Accounting > UM Encumbering > UM Project End Date Override

UM Project End Date Override screen in HRMS

View Sponsored Payroll Encumbering

A page is available in HRMS 9.2 that displays all pertinent end dates of a project that could influence the encumbering end date. The page is called 'UM Project Budget Period'. Navigation:

UM Payroll Accounting > UM Encumbering > UM Project Budget Period

UM Project Budget Period screen in HRMS

Questions can be directed to the University Financial Helpline at 612-624-1617 or controller@umn.edu.