University of Minnesota  Procedure

Adjusting/Correcting Payroll Accounting Transactions on Non-Sponsored Accounts


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Please use the contact section in the governing policy.

  1. Determine the payroll adjustment being initiated and if it is allowable

    Payroll refers to salary and fringe transactions processed in either the Enterprise Financial System (EFS) general ledger or the Human Resource Management System (HRMS). Adjustments must be processed timely.

    Transaction type:

    • Correction of technical errors:For example, the wrong Chartfield String was 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. 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 must 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.
      • Internal Sales:

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

    • Salary and fringe must remain classified as salary and fringe expense.
    • To move an expense from a sponsored project (or to credit) to a non-sponsored 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 (PDF)

    • Transactions must be processed within 60 days from when the original charge was posted. If the deadline is missed, additional justification and approvals may be 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 a Retro in HRMS.

    Refer to Job Aids: 

    Distribution Entry and Retro Distribution (for further instructions)

    • Non-sponsored to Non-sponsored Retros: If the transaction is processed outside the Retro processing timeframe, a general ledger journal entry is initiated because HRMS does not allow Retros after the fiscal year has ended. In initiating the transaction, it must adhere to the following:
      • Salary and fringe must be processed on the same journal entry. Unlike Retros, fringe must be manually calculated.
      • The journal entry justification must include name, original payroll dates, job class, explanatory comments, and note approvals, if required/received.
      • Journal Entry must use transfer accounts for prior year corrections processed in a subsequent fiscal year.
  3. Obtain approvals
    • Retros entered will be automatically routed for approval, if required.
    • If the transaction is a general ledger journal entry, it will be routed for applicable level of approvals.
    • Journal entries $30,000 or greater will also be routed to Accounting Services for central approval.

Imaging of back-up support in Perceptive Content or attaching documentation to the Retro in HRMS is required.  All journal entry documentation must be retained in either EFS or Perceptive Content.