How does Workday interact with DEFINE?
DEFINE remains the system of record for financials and interacts with Workday in several ways.
Posting Salary Transactions to DEFINE: The integration between Workday and DEFINE that creates VP4s will run every night. In Workday, payroll will run more frequently (three standard payrolls plus any off-cycles), so there will be a larger number of vouchers than currently processed. Salary expenses and salary disencumbrances post on separate VP4 vouchers in DEFINE. Mid-month salary or payroll-related changes are retroactive to the first of the month.
Posting Salary Disencumbrance Transactions to DEFINE: After go-live, salaries will continuously disencumber at 1/12 of the annual encumbrance amount calculated in Workday (Workday does not base the salary disencumbrance on the actual salary amount paid). Because the salary disencumbrance amounts are not be based upon the salary transaction amounts, the salary disencumbrance transactions are on a separate VP4 document.
New Fiscal Year Encumbrances: Prior to Workday, encumbrances for salary and fringe were posted separately to *DEFINE, with salary posting in early September followed by fringe in October. Now, Workday posts both salary and fringe encumbrance information to *DEFINE in early September. For more information, see Encumbrance Availability Update.
Encumbrances: Encumbrance adjustments for transactions final approved in Workday by 4 p.m. are processed overnight and posted to DEFINE Financials by 7 a.m. the next morning.
Funds Encumbered for Leave of Absence vs. Unpaid Time Off: Once a Leave of Absence is entered/approved in Workday (must be full time for at least 30 days), funds will be disencumbered (and therefore disencumbered via a nightly encumbrance adjustment process in DEFINE) for the period the person is on leave. For workers on “unpaid time off,” encumbrance adjustments are not be created. Instead, the standard monthly amount remains encumbered until the payroll for that period runs at which time the funds that were originally encumbered for the worker's full salary are disencumbered.
Posting Pooled Fringe Charges and Pooled Fringe Disencumbrances: The same integration that posts salary and salary disencumbrances transactions in DEFINE also contains the data needed to post the pooled fringe and the pooled fringe disencumbrance transactions. These transactions are created for each on-cycle payroll run each month (instead of once per month). As payrolls run, Workday calculates the total fringe encumbrance amount (excluding Centrally Funded Fringe accounts). Workday will also calculate the fringe disencumberance amount as a proportional amount each month, regardless of the actual fringe amount.
Cost Transfers: Cost transfers for retroactive costing allocation changes (i.e., that impact prior completed pay period in Workday) are processed every two to three business days and will update *DEFINE balances the following business day. All correcting entries are completed within a week depending on the day they are entered.
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