Setting up Labor Distribution to calculate benefits

Overview

Benefits can be calculated by the Labor Enterprise Feed job, the Salary Expense Transfer and the Budget Adjustment document based on the labor benefit rate category assigned to Accounts and the Salary and Benefit Object Codes defined in the the Labor Object Code, Labor Benefits Calculation and Labor Object Code Benefits tables.

The following parameters determine whether or not benefit entries should be calculated by Labor Enterprise Feed Job.

• GENERATE_FRINGE_BENEFIT_ENCUMBRANCE_IND - calculates benefits on salary encumbrances
• GENERATE_FRINGE_BENEFIT_IND - calculates benefits on salary expenditures
• BENEFITS_OFFSETS_IND - posts benefit offsets to the GL accounting string specified for the benefit rate in the Labor Benefits Calculation table.
• ENABLE_FRINGE_BENEFIT_CALC_BY_BENEFIT_RATE_CATEGORY - determines if Labor Benefit Rate Category code is editable on the Account and required in the Labor Benefits Calculation table. Also used by the Salary Expense Transfer to generate benefits using the Labor Benefit Rate Category Code. 
• BENEFITS_ORIGINATION_CODE - Origin code that will be used when creating the General Ledger Entries for General Ledger Benefit Offsets.
• BENEFITS_DOCUMENT_TYPES - The doc type that will be used for General Ledger Benefit Offsets. 

The Budget Adjustment document looks for the presence of salary object codes in the Labor Object Code table and Labor Object Code Benefits tables.  

Step 1 - Supporting tables

The following tables are used by the Labor Object Code, Labor Benefits Calculation and Labor Object Code Benefits and need to be populated first: 

• Labor Benefit Rate Category - is an attribute of account that is used to determine the rate that will be calculated for the Account and Salary Object Code. This must be populated on accounts for which benefits will be calculated. 
• Labor Benefits Type - Identifies the Benefit Type. 
• Labor Position Object Group Code - defines various levels of staff, is a required field on Labor Object Code and is used by Effort Certification when determining which employees to generate Effort Certification documents for. 

Step 2- Update Accounts

When calculating benefits, the account will be checked for a Labor Benefit Rate Category code. 

• Set parameter ENABLE_FRINGE_BENEFIT_CALC_BY_BENEFIT_RATE_CATEGORY_IND = Y. This will make the Labor Benefit Rate Category Code editable on the Account and will also make the Salary Expense Transfer calculate benefits using the Labor Benefit Rate Category Code on the Account. 
• You must also set a default rate using parameter BENEFIT_RATE. 
• Populate Accounts with the appropriate Labor Benefit Rate Category Code.  

Step 3 - Define labor object codes

Add the Salary and Benefit Object Codes to the Labor Object Code table. 

• Financial Object Fringe Or Salary Code is either: 
  • S = Salary
  • F = Fringe aka Benefits
• Labor Position Object Group Code links like Salary object codes together and is used by Effort Certification. If desired, it should be completed when Financial Object Fringe or Salary Code = S.  

 Step 4 - Specify Benefit Object Codes and GL Offsets

Add the Benefit Object Codes, Rates and GL Offsets to the Labor Benefits Calculation table. 

• The Labor Benefit Rate Category Code is required when  ENABLE_FRINGE_BENEFIT_CALC_BY_BENEFIT_RATE_CATEGORY = Y
  • -- is a delivered value and represents - not applicable
• If BENEFITS_OFFSET_IND = Y, complete the Labor Offset tab. The fields on this tab represent the accounting string and the debit/credit code where the associated General Ledger benefit offset entries will post. 
• When BENEFIT_PERCENT_IND = Y, Position Fringe Benefit Percent cannot exceed 100. 

Step 5 - Link the Salary and Benefit Object Codes together

Complete the Labor Object Code Benefits table. 

• Enter the Chart, Salary Object Code, the Labor Benefits Type Code and the Labor Benefit Rate Category Code. The Chart, Labor Benefits Type and Labor Benefit Rate Category are used to find the Benefit Object Codes in the Labor Benefits Calculate table. 

Step 6 - Benefits are calculated

The laborEnterpriseFeedJob, Budget Adjustment and Salary Expense Transfer calculate benefits as follows:

• They get the Labor Benefit Rate Category from the Account, 
• Find matching charts and salary object codes in the Labor Object Code Benefits table in order to get Labor Benefits Type Codes.
• They then go to the Labor Benefits Calculation table and find Benefit Object Codes that match the Chart, Labor Benefits Type Code and Labor Benefits Rate Category Code and apply the percentage associated with the Benefits Object Code. 
• Entries are created for each Benefits Object Code.  
• Additionally, if there are General Ledger Offsets associated with the Benefits Object Codes, the laborFeedJob will create General Ledger Entries based on the accounting string in the Labor Offsets tab.