As you know ERE encumbrances are applied to Sponsored Program's Accounts only. The encumbrance amount is calculated by using the actuals and encumbrance JVs that are interfaced between HRIS and Advantage, so these files are retained after each payroll cycle. The amount that is encumbered is calculated using the following formula:
ERE Rate = (ERE Actuals) / (Salaries)
ERE Encumbrance amount = (Encumbrances) X (ERE Rate)
This process is performed in a job that runs after both the Expenses (Actuals) and Encumbrances have interfaced into Advantage. The process also zeros out the previous encumbrance amount, so it is a full reset.
Some recent changes that have been made:
- Provide for a merge of RA/TA expenses (which are currently entered by way of a file provided by FS), so that those expenses are part of the calculation.
- Off-cycle ERE encumbrance calculations have been "off" because the actuals are limited to only those accounts with activity, yet we get a full encumbrance file. The solution, for now, is to retain the calculated rates from the On-cycles and then apply those rates to the encumbrances during off-cycle processing.
Additional information on Human Resource related accounting topics can be found on Financial Services' Commitment Accounting web page, http://www.asu.edu/fs/commitment_accounting.html