Integrating Time and Labor and Payroll for North America
This section provides an overview of integrating Time and Labor and Payroll for North America, and discusses how to:
Configure Time and Labor for use with Payroll for North America.
Prepare Time and Labor data for Payroll for North America.
Load Time and Labor data.
Run the payroll process.
Reverse or adjust a paycheck.
Extract costs after a pay run.
Adjust payable time.
Refresh data.
Correct errors generated during the load and extract processes.
This section describes the steps involved in preparing for and running a payroll when Time and Labor is integrated with Payroll for North America.
To prepare for and run the payroll:
Configure Time and Labor for use with Payroll for North America.
Run the Time Administration process in Time and Labor to create payable time for the time reporters to be paid.
Load payable time created by the Time Administration process into Payroll for North America.
Run the payroll process and confirm the pay run.
Extract data from payroll and send to Time and Labor.
The Extract process triggers the Labor Distribution and Labor Dilution processes if you've enabled these features in Time and Labor.
Steps 1 and 2 are the steps you perform in Time and Labor. The other interactions are initiated through Payroll for North America.
Before you can use Time and Labor with Payroll for North America, you must configure both systems appropriately. You must also select options on the Installation table and set up employee job data in the Administer Workforce business process of PeopleSoft Human Resources.
This section discusses how to:
Configure Time and Labor.
Configure Human Resources.
Configure the Installation table.
Configuring Time and Labor
To configure Time and Labor for integration with Payroll for North America:
On the Pay System page, select the distribution features to use for Payroll for North America.
By default, Labor Distribution is selected and Labor Dilution is not.
On the Time Reporting Codes - Definition page, map each time reporting code to the appropriate earnings code defined in Payroll for North America.
If you want the TRC to be eligible for labor distribution, select the Distribute Costs option. If you want an hourly TRC to be eligible for labor dilution, select the Used in Labor Dilution option.
If a TRC is set up for labor distribution or dilution, but Labor Distribution or Labor Dilution is not enabled on the Pay System page, distribution and dilution don't occur.
Note: We recommend that you use the Sync (synchronize) feature on the TRC Setup 1 page to synchronize time reporting codes with the earnings codes defined in Payroll for North America.
On the Create Time Reporter Data page or the Maintain Time Reporter Data page, select the Send Time to Payroll option for each employee.
Payroll for North America does not create paysheets for non-employees.
On the TL Installation page, select the appropriate settings in the TL/ NA Payroll Options group box.
Configuring Human Resources
To configure PeopleSoft Human Resources for integration of Time and Labor with Payroll for North America:
For each employee, ensure the Payroll System field on the Job Data - Payroll page is set to Payroll for North America.
Set the Employee Type field on the Job Data - Payroll page to E (exception hourly) or H (hourly).
If the Employee Type field on the Job Data - Payroll Page is set to S (salaried), any hours mapped to the default REG earnings code aren't loaded to paysheets. However, costs are labor-distributed across these hours if the Distribute Costs option is selected for the TRC. Select E or H. This enables the system to send updated costs for prior period adjustments to payroll and your general ledger application. If you set up employees with S, Time and Labor populates the labor distribution amount and the diluted gross amount with an estimated gross for these entries. These entries are available as actual costs to publish to Project Costing, but don't flow through Payroll for North America to your general ledger application.
See Payroll Page.
Configuring the Installation Table
Select the Time and Labor and Payroll for North America paysheet options on the Product Specific page of the Installation Table component (INSTALLATION_TBL).
Use this information to determine your settings:
Change Final Check, Change Online Check, or Change Reversal Adjustments options.
We recommend that you do not select these options because they control whether users can make paysheet changes to data that is retrieved from Time and Labor. If you select these options, any changes made directly to the paysheets aren't transmitted back to Time and Labor.
Load in Preliminary Calc (load in preliminary calculations) option.
The Pay Calculation process uses the value of the Load in Preliminary Calc field to determine whether to load new available time (additional time that was worked before the job change but not previously entered on paysheets):
If you select this check box, the system loads all valid available time to the new paysheets, including new available time.
If you clear this check box, the process does not load any new available time to paysheets.
Note: If an employee had a Job data change that caused paysheets to be rebuilt, the preliminary Pay Calculation process attempts to reload all valid time and rejects time that is no longer valid as a result of the job change. This is true regardless of the setting of the Load in Preliminary Calc field. As a result, some new time might be loaded for employees who had a Job data change, even when this option is not selected on the Installation table.
Before a payroll user starts the payroll process, you must run the Time Administration process for the population of time reporters to be paid.
Note: Payroll for North America uses pay groups to define the population of employees to be paid. Before a pay run, verify that the Time Administration process has run for all members of the pay groups to be paid.
These processes, run from Payroll for North America, load payable time for payroll processing:
Time and Labor/Payroll Update COBOL SQL process (PSPLDTL1).
Pay Calculation process.
Final check.
Online check.
If your payroll department prepares paysheets several days before the preliminary pay run, you may want to run the Time and Labor/Payroll Update process directly to retrieve payable time at the beginning of the process. Payable time created or changed after this point can be quickly loaded into the paysheets when you run the preliminary Pay Calculation process.
The load processing performs several steps:
Selects payable time entries in Time and Labor.
Passes payable time entries to payroll.
Consolidates payable time entries.
Updates paysheets or creates new paysheets if none exist.
Time and Labor selects the payable time; Payroll for North America does the rest.
Selecting Payable Time
Time and Labor retrieves payable time that meets the criteria defined by the pay run ID, pay calendars, and other selection criteria specified in the Time and Labor/Payroll Update process run control parameters in Payroll for North America. For each calendar, Time and Labor selects all payable time that meets the selection criteria, excluding record-only adjustments, up to the pay end date for all time reporters associated with the calendar.
A payroll user initiates the Time and Labor/Payroll Update process from the Load Time and Labor component (PY_LDTL_RC), specifying the pay run ID, additional filtering criteria, and identifying which data should be loaded to separate checks. Based on the options selected in this component, the process selects appropriate payable time from Time and Labor records.
For Time and Labor to load payable time into Payroll for North America, the following criteria must also be met:
The payable status of the payable time entry must be set to one of the following:
ES (Estimated – Ready for Payroll)
AP (Approved – Goes to Payroll)
SP (Sent to Payroll)
RP (Rejected by Payroll)
TP* (Taken-Used by Payroll)
PD* (Paid – Labor Distributed)
DL* (Paid – Labor Diluted)
CL* (Closed)
* Entries with a payable status of TP, PD, DL, or CL are selected only if you choose the Refresh Request option when initiating the load process, or if the Payroll Request Number has been reset to 0 because of a payroll unsheet. Time and Labor loads payable time for closed entries if the Pay System flag is set to NA. Closed entries are first set to RP by the refresh request and are then reselected. Refresh requests should be used only when payable time data has become corrupted or lost.
RV (Reversed)
The Reversed payable time status exists to handle check reversals in Payroll for North America. The Payroll for North America Reversal process generates payable time rows with this status. Time and Labor generates the reversed payable time row and any new payable time to be loaded in a subsequent Load process. This process occurs after Payroll for North America has successfully completed the Confirm Pay process.
The process of generating an additional row to be loaded in a subsequent Load process depends on the option selected in the Reversal process from Payroll for North America.
See Reverse Time and Labor Page.
Note: Time with a payable status of NA (needs approval) is never selected.
The employee who reported the time has been set up for payroll processing.
The time reporting code associated with the payable time has been mapped to an active earnings code.
The currency used in Time and Labor matches the currency defined for the pay group in Payroll for North America when the reported quantity is an amount.
How Payroll for North America Updates Selected Payable Time Records
Payroll for North America updates each payable time entry for the selected time reporters.
For payable time entries loaded into Payroll for North America, the system:
Sets payable status to SP for payable time entries that have a payable status of ES, AP, or RP.
If the entry has already been labor-distributed or labor-diluted, it retains its current payable status of PD or DL. If the entry currently has a payable status of CL , but is not subject to labor distribution, it retains its current status.
Sets the TL Pay System indicator to NA Payroll for North America.
Sets the payroll request number to the appropriate payroll request.
The system-generated request number is important if payroll clerks need to refresh or reload data later.
For payable time entries not accepted by Payroll for North America, Time and Labor sets the payable status to RP.
Note: You can see the payable status for a selected time reporter's payable time entries on the View Payable Time Details page.
Consolidating Payable Time and Creating Paysheets
Paysheets are the pages and tables that contain all current payroll information—earnings, deductions, hours, taxes, and other accounting data—for the specified employees and pay period. When the Time and Labor/Payroll Update process loads payable time entries into Payroll for North America, it summarizes the entries according to the application's consolidation rules. Use the Pay Group Table - Time and Labor page in Payroll for North America to instruct the system to create separate rows on the paysheets for payable time entries that have the same Account code, Business Unit, Department, Job Code, Locality, Position Number, Project Costing Business Unit, Project ID, Activity ID, or State.
Note: If Time and Labor passes an override rate to Payroll for North America, and a rate already exists on the earnings code definition, the rate on the earnings code definition takes precedence. If Time and Labor passes an amount, and the earnings code has a flat amount value defined on a flat amount earnings type, the flat amount on the earnings code takes precedence.
Payroll for North America keeps track of how it consolidates payable time and tracks the combined entries by passing back a payroll cross-reference (XREF) number to Time and Labor for each Time and Labor sequence number. At the same time, the system:
Updates entries with a payable status of SP to TP, RP, or CL if labor distribution is not enabled.
When payable status is set to CL, actual costs can be published to PeopleSoft Financials.
Sets the Frozen Flag to Yes, and sets the Frozen Date field to the pay period end date of the associated pay calendar.
After consolidating entries, Payroll for North America automatically creates paysheets—the tables and pages that summarize all payment data. If current paysheets have already been created for any of the time reporters, the payroll process updates the existing paysheets, rather than creating new ones.
After creating paysheets, a payroll user runs the Pay Calculation and the Pay Confirmation processes as usual.
Depending on the options selected on the Installation Table - Product Specific page, any payable time that has not been sent to payroll before may be automatically loaded when the preliminary Pay Calculation process begins. This includes data that has been updated, such as data for employees who have had a job change.
Unsheeting a Pay Run
When a pay run is unsheeted, Payroll for North America changes the payable status of Time and Labor entries from Taken – Used by Payroll (TP) to Rejected by Payroll (RP) with the reason code Cancelled, and resets the payroll request number to 0. Entries with a payable status of Distributed (PD) or Diluted (DL) retain their payable status, but the payroll request number is set to 0. Resetting the payroll request number enables Payroll for North America to reselect the time. (Only time that has a payroll request number of 0 is selected.)
Payroll for North America check reversals enable you to track reversed time in Payable Time, or repay time in a new check. Check reversals can be done in the same pay cycle or different pay cycle and can be done before or after the Extract Cost process.
The way in which Time and Labor and Payroll for North America handle paycheck reversals and adjustments depends on the selections you make on the Paycheck Reversal/Adjustment page in Payroll for North America. This page contains two options in the Process Request Parameter(s) group box. These options are available on the page if payable time exists in the paycheck with any of these statuses: Taken – Used by Payroll (TP), Distributed (PD), Diluted (D), and Closed (CL). The options are:
Reversal – generates a new row in Payable Time with the status of Check Reversal (RV).
Reversal/Adjustment – generates a new row in Payable Time with the payable status of Check Reversal (RV) and an additional row to be loaded for future payment. The payable status of the additional row is Estimated – Ready for Payroll (ES).
Note: Payable Time with the Check Reversal status is not displayed on the Adjust Paid Time page in Time and Labor.
The process that creates the offset and new rows in Payable Time is triggered after the Pay Confirmation process completes successfully. This ensures that check reversal is confirmed and not unsheeted. If an Unconfirm occurs in Payroll for North America, followed by deletion of a check reversal, Time and Labor removes the reversed and new rows in Payable Time.
The rows with a payable status of Check Reversal (RV) that are created in Payable Time are published to Project Costing to keep track of reversed time. This occurs when the Extract Costs process is run, or when the Time and Labor Pay Reversal process is triggered after the Pay Confirm process.
See Reversing Paychecks.
After loading payable time into Payroll for North America and running and confirming the payroll calculation process, Payroll for North America initiates the Extract Time and Labor Costs Application Engine process (PY_PULL_COST) to extract cost data that was generated through:
On-cycle and off-cycle pay runs.
Final check.
Online check.
What the Extract Process Does
The Extract process updates the payable time entries in Time and Labor as follows:
If the payable time is distributed, but not diluted, the Extract process changes the payable status to Distributed (PD).
If the payable time is distributed and diluted, the Extract process changes the status to Diluted (DL).
Note: For time that is not being distributed , the Load Time and Labor process sets the payable time status to Closed (CL).
Provides the cross-reference (XREF) numbers generated during the consolidation process, the calculated costs, and percentages that represent how payroll consolidated the payable time rows.
The system uses percentages when the consolidation process is not clean.
Triggers the Labor Distribution and Labor Dilution processes in Time and Labor, if applicable.
Sets the publish date and publish switch.
Note: If Payable Time is pulled into paysheets, and Ok to Pay is cleared for those related earnings, these rows of payable time are not paid.
Example: Percentages Returned by the Extract Process
Of a time reporter's total hours, 75 percent are subject to New York state tax and 25 percent are subject to Connecticut state tax. In this case, the consolidation process creates two pay earnings rows for the individual—one for each state. The Extract process would return the percentages along with the resulting costs, so Time and Labor can distribute the costs during the Labor Distribution process.
Distributing and Diluting Costs
Costs are always distributed across payable time for the current period, prior period adjustments, and advance payments. You can view distributed and diluted costs on the Payable Time Detail page in the Time and Labor self service transactions.
If the pay calendar is on-cycle, then on-cycle earnings can only be distributed once; off-cycle earnings can be distributed multiple times. If the Pay Calendar is off-cycle, then its off-cycle earnings can only be distributed once. The system overlays existing labor distribution amounts with new amounts. This iterative processing makes it possible to redistribute earnings after modifying or adjusting pay-related information. Subsequent runs create offsets for existing paid time entries.
If Project Costing is installed, actual payable time entries that are closed, diluted, or distributed are published automatically to Project Costing after running the extract job.
Labor Distribution with Paycheck Reversals
For a discussion of labor distribution and paycheck reversals:
See Publishing Estimated and Actual Cost Data to Project Costing.
This section discusses the adjustment of payable time.
Normal Adjustments
Normal adjustments to payable time are changes or additions to payable time using any of the time reporting pages. If you make normal adjustments after loading payable time into Payroll for North America, run the Time Administration process again so that the changes are sent to Payroll for North America during the next load process.
If you enter an adjustment after the Frozen flag is set (that is, once the payable status is set to AP, CL, or SP), and the Time Administration process finds an existing entry that has the same time reporting code and task information as your adjusting entry, it creates a new row of payable time and a row that offsets the original entry. Both the new and offsetting rows are sent to Payroll for North America when you next load payable time.
Record-Only Adjustments
Record-only adjustments entered on the Record Only Adjustment page are not sent to Payroll for North America; however, they can affect the results of the Labor Distribution process and the costs that are published to Project Costing.
If you run the Labor Distribution process, make a record adjustment to a payable time record that's already been distributed, and then rerun Labor Distribution, no cost is distributed for the adjusted record.
An error message will display the sequence number of the payable time entry that isn't redistributed.
If you make a record-only adjustment to an entry that was previously sent to Payroll for North America, the labor distribution amount and diluted labor distribution amount are copied to both the offset row and the new row.
You can alter the values for labor distribution and labor dilution on the new row, if needed. The amounts associated with the new row are the amounts that will be published to Project Costing.
If you insert a new row on the Record Only Adjustment page (rather than correct an existing row), you can enter values in both the Labor Distribution Amount and Diluted Labor Distribution Amount fields.
If you do not enter a value in the Diluted Labor Distribution Amount field, a zero amount will be published to Project Costing as the actual diluted labor distribution amount when the payable status changes to CL.
A Refresh Request option in Payroll for North America enables users to reselect all payable time passed to payroll during the original load process. This includes current data, prior period adjustments, and any new payable time entries where the payable status is set to ES, CL, SP, or RP. This feature enables a user to recapture lost data, and should be used only as a recovery measure.
Warning! Refresh requests have a significant impact on system performance and should be used only when time has been corrupted or lost and you need to reload all time associated with a particular Payroll Request Number.
This section discusses the correction of errors generated during the Load and Extract processes. The Review Time and Labor Load component enables you to identify and view load messages by employee.
See Reviewing Results and Correcting Errors.
Load Process Errors
Payroll personnel are advised to review the paysheets and check for error messages created during processing. During the Load Time and Labor process, payable time can trigger the processing errors listed in the following table. In all cases, the payroll system changes the payable time status to RP. Correct the error, run the Time Administration process again, if necessary, and advise the payroll clerk to rerun the Load Time and Labor process.
|
Error |
Action |
|---|---|
|
Invalid Mapping of TRC to NA Earnings Code |
Correct the mapping on the TRC page. It's possible the earnings code was inactivated after it was mapped to the TRC. |
|
Invalid Currency of TRC for the NA Pay Group |
Correct the currency on the TRC page. Time and Labor does not perform any currency conversion. |
Other reasons that payable time can be rejected are:
A time reporter is not active in JOB.
A time reporter has changed pay groups in the pay period that is being processed.
The TRC in payable time is mapped to an earnings code in Payroll for North America that is not in the time reporter's earnings program.
You run PayUnsheet and all payable time is set to a payable status of Rejected.
Reported state and locality overrides are not found in the Employee Tax Data tables.
Note: Depending on the Installation table options selected, payroll users may be able to modify paysheet data that originated in Time and Labor when producing a final check, online check, or doing reversal adjustments. However, because changes made on the payroll pages will not be reflected in Time and Labor, we recommend that you make all corrections in Time and Labor.
Extract Process Errors
|
Error |
Action |
|---|---|
|
Multiple currencies cannot be distributed. |
Depending on the source of the error, adjust the currency for the reported time in Time and Labor or change the currency for the entry in Payroll for North America. |