Setting up Labor Distribution to calculate benefits

Overview

Benefits can be calculated by the Labor Enterprise Feed job and by the Budget Adjustment document based on 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 account specified for the benefit rate in Labor Benefits Calculation.
• ENABLE_FRINGE_BENEFIT_CALC_BY_BENEFIT_RATE_CATEGORY - determines if benefit exceptions can be made by using a rate associated with an account versus the salary object code
• BENEFITS_ORIGINATION_CODE - Origin code that will be used when creating the General Ledger Entries for Generated Benefit Offsets
• BENEFITS_DOCUMENT_TYPES - The doc type that will be used for labor benefit offset calculation.

The Budget Adjustment document looks for the presence of salary object codes in the Labor Object Code, Labor Benefits Calculation 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 - allows you to define account override percentages. Unless an exception exists on an account, benefits will be calculated based on the salary object code. 
• Labor Benefits Type - groups like benefit types together. 
• Labor Position Object Group Code - defines various levels of staff; it's a required field on the Labor Object Code and is used by Effort Certification when determining which employees to generate Effort Certification documents for. 

Step 2 - 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
• 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 3 - Specify the benefit percentages

Add the Benefit Rates 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 Account Code Offset and Labor Object Code Offset fields. These represent the account and object code where the GL benefit offsets will post. 

Step 4 - Link the Salary and Benefit Object Codes together

Complete the Labor Object Code Benefits table. 

• Enter the Salary Object Code and the Labor Benefits Type Code with the applicable percentage. 

 Step 5 - Update Accounts with Exception

Benefits can be calculated on either the salary object or Labor Benefit Rate Category Codes can be assigned to accounts, if the account should have a different rate.

Parameter ENABLE_FRINGE_BENEFIT_CALC_BY_BENEFIT_RATE_CATEGORY needs to be set to Y.