Introduction & Key Resources

Important Note: This content will be available in CORE Payroll once the system is live. These transactions are not activated for end users at this time.

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Labor Allocation in CORE Payroll determines how payroll and fringe expenses are assigned to the appropriate accounting distribution. The process begins with time and labor information, uses labor distribution rules and profiles to determine where costs should be charged, and produces accounting entries that are ultimately reflected in CORE Financial.

For Labor Allocation users, the process has two important parts: assigning labor costs to the appropriate accounting distribution and correcting the accounting distribution when a cost has already been posted incorrectly.

Important: Labor Distribution Assignment determines where labor costs should be charged. Labor Distribution Correction changes the accounting distribution of a cost that has already been posted. A labor distribution correction does not change the employee's pay, hours, or deductions.

Key components of Labor Allocation in CORE Payroll include:

Labor Distribution Profiles (LDPRs) that define accounting distributions for payroll expenses.
Labor Distribution Profile (LDPM) transactions used to create LDPRs.
Labor Distribution Adjustment (LDA) activity folder used to review paycheck, payroll expense, and fringe expense information.
Labor Cost Redistribution Request (LCRR) and Mass Change to Labor Distribution (MAS6) processes used to correct labor cost distributions.
Payroll accounting inquiries and reports that support investigation, reconciliation, and review.

How Labor Allocation Works

Most employee time is collected in an external time-tracking system, such as UKG or SAP, and enters CORE Payroll through an interface. These interfaces create Timesheet Adjustment (TADJ) transactions in CORE Payroll. Some State entities that do not use an external time-tracking system will use a manual time-entry process in CORE Payroll.

Labor distribution information then determines where the resulting payroll expense should be charged. A Labor Distribution Profile can provide default accounting for a position or support activity- or project-based accounting through time entry. When a time-entry LDPR is used, it overrides the default labor distribution associated with the position.

After payroll is processed, CORE Payroll creates payroll expense and fringe expense accounting journal entries. These entries can be reviewed in the Labor Distribution Adjustment (LDA) activity folder. If the accounting distribution is incorrect, users can initiate a labor distribution correction using either the Labor Correction Redistribution Request (LCRR) transaction or the Mass Change for Labor Distribution (MAS6) transaction.

The diagram below provides a high-level flow of labor allocation process in CORE Payroll.

A diagram that shows the basic steps in the labor allocation process in CORE Payroll. It starts with Creation of LDPRs, then moves to Time Entry, Time Correction, Payroll Processing, Population of Accounting Journals, posting to the CORE financial system, and then labor distribution correction as needed.

Labor Distribution Assignment vs. Correction

As shownbelow, labor distribution assignment and labor distribution correction serve different purposes and should not be confused:

Labor Distribution Assignment

What It’s Used For: Determines where labor costs should be charged before or as payroll is processed.
CORE Payroll Mechanism: Labor Distribution Profiles (LDPRs) provide the accounting distribution, either as a position default or through time entry.

Labor Distribution Correction

What It’s Used For: Changes the accounting distribution of payroll or fringe expenses that have already been posted.
CORE Payroll Mechanism:
- Labor Cost Redistribution Request (LCRR)
- Mass Change for Labor Distribution (MAS6)
- Note: These two tools are used to make corrections to accounting journals so that labor costs are accounted for properly. They do not change an employee's paycheck.

Important: If the employee was paid the wrong amount, hours, or deductions, that is a payroll correction, not a labor distribution correction. Payroll corrections can be made using deduction and payment transactions found in the Pay Management section of CORE Payroll.

Labor Distribution Profiles (LDPRs)

The Labor Distribution Profile (LDPR) activity folder provides a central location to search for, view, create, and modify Labor Distribution Profiles. An LDPR represents an accounting distribution that can be used to determine where payroll expenses are charged. Using an LDPR reduces data entry by allowing a single profile code to represent the applicable Chart of Accounts (COA) values and percentage splits.

LDPRs can support multiple accounting lines and percentage-based funding splits. They are effective-dated, so different distributions can be used at different points in time.

After an LDPR is created and approved, it can be assigned to a position through the Position Maintenance (PSMT) process. A position-level LDPR provides the default labor distribution. When an employee selects an LDPR through time entry for activity- or project-based work, that time-entry accounting overrides the position default. This means that a position can have a default LDPR for routine work, while time entry can use a different LDPR when the employee needs to charge time to a different activity, project, or funding source.

Activity Folders

Activity folders provide a centralized location for related functions and information. The two primary Labor Allocation activity folders are the Labor Distribution Profile (LDPR) and Labor Distribution Adjustment (LDA).

Labor Distribution Profile (LDPR)

Use the Labor Distribution Profile (LDPR) activity folder to search for and view existing LDPRs and to initiate actions to create or modify profiles. Selecting Create Labor Distribution Profile or Modify Labor Distribution Profile opens the Labor Distribution Profile (LDPM) transaction.

Inside the Labor Distribution Profile (LDPR) activity folder, there are two tabs where users can see details related to a particular profile.

Labor Distribution Profile: Displays general information about the LDPR including effective dates, home department, and short and long descriptions.
Detail: Displays detailed information about each line such as the distribution percentage and associated accounting elements.

Labor Distribution Adjustment (LDA)

Use the Labor Distribution Adjustment (ADA) activity folder to review paycheck information and payroll-related accounting journal entries. LDA provides access to historical information that can be used to investigate how labor and fringe expenses were distributed and to support labor distribution corrections. The Labor Distribution Adjustment (LDA) activity folder provides access to review and adjust payroll-related accounting distributions.

Inside the Labor Distribution Adjustment (LDA) activity folder, there are five tabs each corresponding to an accounting journal which displays financial information populated from transactions processed within CORE Payroll.

Paycheck: Displays journal entries for individual paychecks.
Payroll Expense Journal: Displays historical payroll expense accounting entries, including the accounting distribution associated with payroll expense.
Fringe Expense Journal: Displays historical fringe expense accounting entries and the associated accounting distribution.
Contract Pay Expense Journal: Not currently in use by the State of Colorado.
Leave Accrual Expense Journal: Not currently in use by the State of Colorado.

Transactions and Related Tools

Transactions and related tools support the creation and maintenance of labor distribution profiles, the assignment of profiles to positions, and the correction of labor cost accounting.

Labor Distribution Profile (LDPM)

Use the Labor Distribution Profile (LDPM) transaction to create or modify a Labor Distribution Profile. The transaction identifies the profile and defines the accounting distribution, including Chart of Accounts (COA) values and percentage splits. There are two methods for creating LDPM transactions: individually or in bulk using a spreadsheet upload tool (known as UPDOCS). Once created, LDPMs go through the workflow and approval process. Upon final approval, the associated Labor Distribution Profiles (LDPRs) can be assigned to positions or selected on time-entry transactions for activity- or project-based overrides of default position accounting.

Tabs within the LDPM transaction include:

Labor Distribution Profile: Displays general information about the LDPR created by the transaction including created by, created on date, effective dates, home department, and short and long descriptions.
Labor Distribution Profile Detail: Displays details associated with the LDPR created by the transaction, including distribution percentage and associated accounting elements.

Create an LDPM transaction through the Labor Distribution Profile (LDPR) activity folder.

Position Maintenance (PSMT)

Use the Position Maintenance (PSMT) transaction to assign an approved LDPR to a position. The assigned profile provides the default accounting for labor charged to that position. The Home Department on the position must align with the Home Department on the LDPR.

On the General Information tab, expand the Accounting Source section and complete the following fields:

Labor Distribution Override Option: Determines how the labor distribution for the position will be established. To assign an LDPR, select Use Entered Labor Distribution Profile.
Labor Distribution Profile: Enter or select the LDPR to use as the position's default accounting distribution.

Initiate the PSMT transaction through the Position Management (POSM) activity folder.

Note: When labor distribution information is provided through time entry, it can override the default LDPR assigned to the position.

Labor Cost Redistribution Request (LCRR)

Use the Labor Cost Redistribution Request (LCRR) transaction to correct the accounting distribution of a specific payroll or fringe expense that has already been posted. LCRR transactions can be used to redistribute a specific amount or percentage of cost, but do not support the use of LDPRs for the revised distribution.

Tabs in the LCRR Transaction include:

Labor Cost Redistribution Request: Displays high-level information about the LCRR such as created by, created date, Employee ID, Assignment ID, GTN Run Number, Generate Correction Transaction Checkbox, and Adjustment Reason.
Original Distribution: Displays information about the original labor distribution including journal type, fiscal year, accounting period, event type, payroll transaction id, LDPR, and associated COA elements.
Revised Distribution: Enter revised labor distribution instructions including the percent or amount and updated COA elements.

Initiate this transaction from the Labor Distribution Adjustment (LDA) activity folder.

Mass Change to Labor Distribution (MAS6)

Use the Mass Change to Labor Distribution (MAS6) transaction to perform percentage-based labor cost redistribution when an LDPR applies or when a mass redistribution is needed. MAS6 uses selection and exclude criteria to identify the applicable payroll and/or fringe expense records to be redistributed and can generate LCRR transactions with associated accounting for the selected records.

Tabs in the MAS6 transaction include:

Selection Criteria: Identifies the payroll and/or fringe expense accounting entries to include in the mass redistribution. Users can define the group using criteria such as pay period, employee, Department, Labor Distribution Profile (LDPR), or other payroll and accounting information.
Exclude Criteria: Allows users to exclude specific expenses from the group identified on the Selection Criteria tab. This is useful when the selection criteria identify a broad group but certain expenses should not be redistributed.
Revised Attributes: Defines where the selected costs should be redistributed. Users can specify the revised distribution using a Labor Distribution Profile (LDPR) or by entering revised Chart of Accounts (COA) values. The revised distribution is percentage-based and must total 100%.

Important: Use LCRR when you need to redistribute a specific amount. Use MAS6 when a Labor Distribution Profile applies or when performing a mass redistribution.

Labor Distribution Review and Correction

The LDA activity folder is the primary starting point for reviewing how payroll and fringe expenses were distributed. From LDA, users can review the original accounting and determine whether a correction is needed.

Reviewing Labor Costs

Use the Pay Check tab to review historical paycheck information.
Use the Payroll Expense Journal tab to review how employee wages were distributed.
Use the Fringe Expense Journal tab to review how employer-paid benefits were distributed.
Expand a result to review General Information, Journal Information, and COA details associated with the entry.

Refer to the linked job aids above for step-by-step instructions for searching and reviewing each type of information.

Correcting Labor Distribution

If the accounting distribution needs to change after payroll has been processed and the expense has been posted, use LCRR or MAS6 to create the correction. The correction changes the accounting distribution of the posted cost. It does not change the employee's pay, hours, or deductions.

After the correction request is approved, it is processed during a scheduled correction cycle. Once processing is complete, the corrected journal entries can be reviewed in LDA.

Inquiries

Payroll accounting inquiry pages provide additional read-only information for investigation, reconciliation, and troubleshooting. Each inquiry serves a distinct purpose and provides access to different dimensions of labor data. The following inquiries have been identified as useful to Labor Allocation users at go-live.

Payroll Accounting Management Detail Inquiry (PAMPYDT)

This inquiry provides detailed payroll accounting information and can be used to investigate the accounting associated with a specific payroll transaction.

Highlight of the Payroll Accounting Management Detail Inquiry Page.

Payroll Accounting Reconciliation Inquiry (PYRLAR)

This inquiry displays payroll accounting items that are pending reconciliation. Use it to determine whether a change made in CORE Financial has been reflected in CORE Payroll. This inquiry is view-only.

Image of the Payroll Accounting Reconciliation Inquiry.

PAM Exception Inquiry (QPAMERR)

This inquiry displays exceptions identified during payroll accounting processing. It can indicate that accounting information, such as an LDPR, was skipped during processing. Use it for troubleshooting; corrections cannot be made directly from the inquiry.

Image of an entry in the PAM Exception Inquiry. The Non Accounting Attributes tab is selected and shows an error message and error key.

Reports

Two CORE Payroll Labor Allocation reports provide complementary views of labor distribution. To access either report, use Global Search to search by Page Code RPRTALL, select RPRT View All Reports. On the Reports page, search by the report number or name.

RPT.368 – Labor Allocation Posted Report

This report provides information about labor allocation that has processed and posted through payroll. Use it to review what was processed and where it posted, analyze labor expenditures, and identify potential issues with the accounting used. The four views available within this report include:

COA Elements: Shows the COA elements associated with posted LDPRs and helps identify invalid COA values.
LDPR Processed and Posted: Shows what was processed and where it was posted.
Labor Expenditures: Breaks down labor expenditures by Department, Unit, and Amount.
SPAR Settings: Displays the applicable Central Payroll clearing account settings.

Image of the Cover Page of RPT.368 - Labor Allocation Posted Report. Four additional views are also depicted: COA Elements, LDPR Processed and Posted, Labor Expenditures, and SPAR Settings.

RPT.369 – Labor Allocation Configuration Report

This report provides information about how positions and Labor Distribution Profiles are configured in CORE Payroll. Use it to review current LDPR assignments, identify unused profiles, and review position and LDPR accounting information.

Current Labor Distribution: Shows how positions are configured and the LDPRs being used or unused.
Unused LDPR: Shows Labor Distribution Profiles that are not assigned.
Current Position and LDPR: Combines position and LDPR information and includes the available accounting fields.

Image of the cover page of RPT.369 Labor Allocation Configuration Report. The image also shows these additional report views: Current Labor Distribution, Unused LDPR, Current Position and LDPR.

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