Organization suspense accounts (OSA) are set up for every organization (org) to account for payroll transactions that fail to post.
Organization Suspense Accounts Defined
Payroll transactions that fail to post successfully to valid project-task-awards (PTAs) are instead posted to clearing awards created to capture these failures for their org. The charges must be moved at a later date to an appropriate PTA. Every time a new org is created, as part of the Organization Code Hierarchy administered by the University Budget Office, the department must supply a PTA, with award type “Clearing,” to be mapped as the designated OSA for payroll transactions.
- Additionally the department must provide a sweep PTA (typically operating budgets) where charges on the clearing awards will be moved by central office action if departments fail to move charges to appropriate PTAs in a timely manner.
Subsequent PTA changes must be emailed to the Systems and Reporting Operations (S&RO) team to ensure orgs are mapped accordingly.
- All payroll transactions posted to the OSA reflect the 51610 expenditure type and are burdened at the highest rate.
- An employee's payroll transactions are charged to the OSA associated with the department (org) of the employee work assignment (job) in PeopleSoft.
- Departments are required to clear balances in a timely manner (optimal time for OSA is every time payroll is run).
- The Labor Distribution system is used to create labor distribution adjustments (LDAs) to clear OSA transactions.
- All transactions remaining in the OSA are swept quarterly by the Systems and Reporting Operations (S&RO) team to the sweep PTA provided by the department. Refer to Policy: Clearing of Organization Suspense Accounts for details.
- To learn the OSA PTA or sweep PTA for an org, contact the Systems and Reporting Operations (S&RO) team at firstname.lastname@example.org.
Reasons Why Payroll Earnings Post to Organization Suspense Accounts
- A labor schedule does not exist for an employee that should have one. This excludes students in the graduate financial support (GFS) systems and employees submitting timesheets.
- Labor schedule lines total less than 100 percent. The remaining earnings are booked to the suspense account.
- The PTA listed on the labor schedule or procurement action was not valid when payroll was run.
- The PTA assigned in Axess Timecard, Payroll or GFS was not valid.
Reasons Why PTAs Become Invalid
Changes made to the PTA setup after the transaction was entered but prior to approval may cause the PTA to become invalid and the transaction to be rejected. This may include changes to:
- Close Date. Last date award will accept transactions (regardless of expenditure item date).
- End Date. The last expenditure item date the system will allow an expense to be entered on the PTA. For example, an award has an end date of December 31, 2019 (31-DEC-19) and a close date of March 31, 2020 (31-MAR-20).
A distribution adjustment was entered and approved on March 1, 2020 (01-MAR-20) for payroll earnings reflecting the December 15, 2019 (15-DEC-19) (the expenditure item date) pay period. The adjustment will be processed and posted because the adjustment was entered before the close date (31-MAR-20) and the date the expense was incurred (15-DEC-19) was before the end date.
- Changes on the P, T and/or A status - If the status is at risk, on hold, or closed, then charges cannot be posted.
- Installment Not Activated. The central office has not enabled the award to receive expenses.
Identifying, Clearing and Preventing Future OSA Postings
Department labor schedulers receive proactive email notifications for the current pay period, informing them of any labor schedule lines that are invalid for employees within their authority. Correcting these invalid labor schedule lines before the end of the pay period will prevent expenditures from posting to the department OSA.
Email notifications are sent four times a month, on the 12th, 14th, 27th and 29th. The notification includes the employee name, assignment, project, task, award, labor schedule line percent, start date, end date and explanation of why the lines are invalid. When there are multiple labor schedulers per department, the email notifications will be sent to each individual in the department with the labor scheduler responsibility.
Use the OBI Payroll and Labor Management (PLM) Dashboard to review all transactions that have been posted to the department OSA.
For information about OBI, refer to OBI Financial Reporting.
Refer to How to: Clear Organization Suspense Accounts for step-by-step instructions. Based on the transaction detail, you can process the labor distribution adjustment to clear the balance accordingly.
When reviewing the earnings in the Oracle labor adjustment module, clear all transactions posted to the suspense expenditure type 51610 (including salary on vacation, SOV, and vacation credit, VCR, entries).
The OSA policy includes a sweep process to periodically move suspense transactions to the clearing account provided by the department, and a $25 fee for each payroll line that is not timely cleared from an OSA will be charged to this account. This includes SOV and VCR entries.
To clear a transaction, determine what PTA(s) the transaction should have posted to. If you have access to the Oracle labor distribution module, enter a distribution adjustment(s). Refer to How to: Clear Organization Suspense Accounts for more information. If you do not have access to this module, notify the appropriate person to enter the distribution adjustment(s). To find an LD adjuster in your school or department, refer to Who Can Create a Labor Distribution Adjustment.
Prevent Future Postings
Following are some of the most common actions a user may take to prevent future payroll transaction errors:
- Modify the employee's labor schedule (refer to How to: Create / Update Labor Schedule).
- Modify GFS, PeopleSoft record or Axess Timecard.
- Ensure that the PTA(s) on paper timesheets are legible and that the timesheet contains the employee's assignment number.