ADMINISTRATIVE PROCEDURE

Adjusting/Correcting Payroll Accounting Transactions on Non-Sponsored Accounts
  1. Determine the payroll adjustment being initiated and if it is allowable

    Payroll refers to salary and fringe transactions processed in either the general ledger or HRMS. Adjustments should be processed timely.

    Transaction type:

    • Correction of technical errors: For example, the wrong Chartfield String was accidentally charged. This error can be corrected by reclassifying or moving the expense from the incorrect Chartfield String to the correct Chartfield String(s).
    • Redistribution of expenses/charges amongst accounts paying for a common activity: In these situations, expenses are charged to one Chartfield String on behalf of others. This is generally done for efficiency purposes where portions of the expense are moved to the other relevant Chartfield Strings.
    • Allowable Guidelines / Criteria:
      • Negative expenses must not be created. Expenses must be moved within the fiscal year it was originally recorded.
      • The account value should reflect the nature of the expense and the function should reflect the purpose of the expense.
      • Fund restrictions must be rigorously applied. Some expenses recorded in unrestricted funds are not allowable in restricted funds.
      • Function code integrity must be maintained.
      • Internals Sales Organizations:

        Refer to Administrative Policy:
        Selling Goods and Services to University Departments

      • Salary and fringe should remain classified as salary and fringe expense.
      • To move an expense from a sponsored project (or to credit) to a nonsponsored account outside the budget/award period, notify the SFR accountant, as a revised report/invoice must be submitted to the sponsor with funds to be returned.
    • Adhere to proper deadlines, accounting periods, and protocol when moving a payroll expense. Refer to:
      Cost transfer approval matrix
      • Transactions must be processed within 60 days from when the original charge was posted. If the deadline is missed, additional justification and approvals are necessary.
      • When moving expense transactions from a prior fiscal year, use the appropriate transfer accounts.
      • No original charges older than 12 months may be moved on to a sponsored project.
  2. Initiate and prepare the transaction
    • Prepare an HSA document.

      Refer to:
      HSA and Distribution Correction (for further instructions)

    • Non-sponsored to Non-sponsored HSAs: If the transaction is processed outside the HSA processing timeframe, a general ledger journal entry is initiated because HRMS does not allow HSAs after one year from the original transaction. In initiating the transaction, it should adhere to the following:
      • Salary and fringe should be processed on the same document. Unlike HSAs, fringe must be manually calculated.
      • The journal entry justification should include name, original payroll dates, job class, explanatory comments, and note approvals, if required/received.
      • Use transfer accounts for prior year corrections processed in a subsequent fiscal year.
  3. Obtain approvals
    • HSAs entered will be automatically routed appropriately.
    • If the transaction involves a general ledger journal entry, it will be routed for applicable level of approvals.
    • Non-sponsored journal entries $30,000 or greater will be routed to Accounting Services for central approval.
    • Imaging of back-up support in ImageNow is encouraged.

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