Labor Schedule Hierarchy for Labor Distribution

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Distribution

Chief Human Resource Officer

LD Administrator

LD Approver/Setups

LD Approver

LD Specialist

LD Labor Schedule Specialist

Ownership

The Chief Human Resource Officer is responsible for ensuring that this document is necessary, reflects actual practice, and supports University policy.

Labor Schedule Hierarchy

Labor Distribution supports a hierarchical approach to determining the charging instructions for incoming labor transactions. Transactions from the payroll process are imported into LD immediately after the payroll is completed. These transactions record the employee, assignment and earnings element for each amount the employee was paid.

LD begins searching for a labor schedule at the bottom of the hierarchy and moves upward until finding a labor schedule or account.

The Global Earnings Element labor schedule is at the lowest level of the schedule hierarchy. It allows users to define a labor schedule for an individual earnings element that applies across the entire university. This level is currently NOT being used at the University in Phase I but may be used in Phase 2.

The first level being used at the University is the employee assignment level. When scheduling labor for an individual employee in LD you will choose among three levels of hierarchy within the employee assignment level: the Earnings Element Level, the Element Group Level, and the Assignment Level. If no schedule is defined at one of these levels, LD will move to the next level in the hierarchy organization level.

The Earnings Element Level Labor Schedule allows users to create labor schedules for individual earnings elements. A labor schedule of this type is used to distribute all earnings against a particular element for a specified employee assignment. Labor schedules defined at the Earnings Element level take precedence over labor schedules defined at the Element Group, Assignment, and Organization Default Labor Schedule levels.

Example: Regular Salary, Regular Wages, Bonus. This means that LD can distribute an employee's bonus to a different PTAEO(s) than the employee's regular salary.

Element Groups are used to group earnings elements. The Element Group Level Labor Schedule allows users to create one labor schedule that applies to all earnings elements in a specified element group. The earnings elements within the specified element group are scheduled and distributed based on the specified PTAEO(s) for an employee/assignment. This schedule hierarchy level is used to distribute all earnings elements in the element group for the specified employee assignment. For example, an element group has been established to group all earnings elements that capture overtime. The user could enter a labor schedule to distribute overtime to a different account than regular salary. Labor schedules defined at the Element Group Level take precedence over labor schedules defined at the Assignment and Organization Default Labor Schedule levels.

Example: Premium Pay, Regular Pay.

The Assignment Level Labor Schedule allows users to create one labor schedule that applies to all earnings elements that may be paid to an employee assignment.

There are three levels included within the organization level: the Organization Default Labor Schedule Account, the Organization Default Account and the Organization Suspense Account.

The Organization Level Default Labor Schedule allows users to create labor schedule lines for each organization. Users can create one labor schedule set at the Organization Default level for that unique organization that applies to all assignment and the earnings elements associated with them.

Example: A single labor schedule is created for the Budget Office. All assignments with an organization of Budget Office and labor schedule set at the Organization Default Labor Schedule level use the labor schedule defined for the organization of Budget Office. The user does not have to individually create a labor schedule for each employee assignment that is attached to the Budget Office.

The Organization Level Default Account allows users to identify a unique PTAEO for each organization to collect costs from labor distribution if charging instructions at the lower levels of the scheduling hierarchy are missing (i.e., total less than 100% for any given day(s). This level is currently NOT being used at the University.

The Organization Level Suspense Account allows users to identify a unique PTAEO for each organization to collect costs from labor distribution if charging instructions at all lower levels of the schedule hierarchy, including the Organization Level Default Labor Schedule, are missing or if charging instructions at any level of the scheduling hierarchy are incorrect. Charges in this account(s) should be regularly reviewed and moved to the correct account(s).

For employees without a defined labor schedule, LD will identify the organization on the employee assignment (the appointment hiring department) and use the organization default labor schedule account recorded for that organization.

Finally, if no schedules are identified at the Organization Default Labor Schedule level of the hierarchy, the amount will be charged against the Organization Suspense account. LD insures that all amounts paid to employees are accounted for in the university’s financial records.

Effective: 08/12/04