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Job Labor Distribution (JLBD) Effective Dates

The effective date in HRFE indicates as of which day the labor distribution change will be effective. The payroll system uses these dates in processing.

For example, if there is an existing record for 1/1/2023 and a JLBD change with an effective date of 7/1/2023, there would be two components for the July monthly pay event (6/16/2023-7/15/2023). The 6/16-6/30 timeframe would pay using the CFOP information on the 1/1/2023 effective dated record, and the 7/1-7/15 timeframe would pay using the 7/1/2023 effective dated information.

Impact to Accruals

Accruals post for accrual pay events with a JLBD effective date greater than or equal to 7/1 of the new fiscal year. This does not apply to 9/12 employees as that calculation follows different rules. See Payroll Accruals section for how accruals are processed.

Impact to Encumbrances

If a future effective date is used, encumbrances will only calculate up to that future date.

Best Practices to Avoid Known Banner Errors

Please review JLBD changes thoroughly before posting them in the system. There is a known issue where not all required voids are posted if multiple changes to the same job are made within one pay period.

If you believe your encumbrances are overstated due to this issue, contact uafrpayrollacctg@uillinois.edu for assistance with review and/or correction.

The effective date in Banner form PZAREDS dictates the posting date of the redistribution transaction. That posting effective date is separate from the JLBD effective date used in HR Front End.

Payroll Accruals

Automated process using the existing Banner data to post accruals for pay events that are earned in one Fiscal Year (FY) and paid in the next.

  • Every year MN 7 will be an accrual pay event with accruals posting as MN 999
  • Depending on the year there will be 1 or 2 BW accrual pay events.
    • If an entire pay event was earned in the prior FY but paid in the next FY, accruals will post as BW 998.
    • If a pay event is earned across two FY but paid in the next FY, accruals will post as BW 999.
  • Accruals will zero out between FY’s (debit to expense in prior FY and credit to expense in following FY)
  • Redistributions cannot be done for accrual transactions after the FY has closed but gross expense can be redistributed. If accrual pay events need to be moved you will look for the standard pay event number to redistribute (MN 7, BW 13, BW 14, BW 15)

Payroll Encumbrances

How Encumbrances are Calculated/Liquidated

Payroll Encumbrances are records of anticipated expenses that a department should expect throughout the current period. This will generally be the earliest of the following:

  • End of the current Fiscal Year (or the Grant end date for multi-year encumbrances)
  • Job end date in NBAJOBS
  • Effective date of a future-dated job distribution record for that employee and job.

Encumbrance balances will liquidate each pay period in the amount of the payroll expenses posted that pay period until the balance reaches zero.

Timing of When Encumbrances Are Updated in Banner

Encumbrances are only updated (recast) in Banner during a main payroll calculation (monthly or biweekly). Because of this, changes to encumbrances may take a few weeks to process in Banner.

How to Update Encumbrances

Encumbrances reflect the anticipated payroll expenses for a specific job so changes to encumbrances will process based on changing the job distribution record in HR Front End (HRFE)

Labor Redistributions in Banner using form PZAREDS will not impact encumbrance balances since the expenses being moved have already been liquidated when the payroll initially posted.

How to Close $0 Encumbrances

Sometimes an encumbrance is fully liquidated with a $0 balance but has not been closed in the system. If grant related, please contact Grants. For all other funds email uafrpayrollacctg@uillinois.edu.

Reviewing Payroll Encumbrances by Person and by Month

Payroll Encumbrance reports are located in My UI Financials.

Year End Encumbrance Processing

For encumbrances that are encumbered on an annual basis, any encumbrance balance at year-end will be fully liquidated. Multi-year encumbrance (MYE) balances roll into the next fiscal year.

Annual encumbrances will be recast when the first payroll of the next fiscal year is calculated.

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