Partial Period Accruals

Use the Calculate Partial Period Accruals process to estimate costs. Estimating costs are needed when the last payroll period overlaps two accounting periods, or when you need an estimate for an accounting period you must close quickly, such as the end of a quarter.

If you estimate costing, consider creating a payroll flow pattern to use at the end of the month that includes these tasks:

• Calculate Partial Period Accruals process

• Run Payroll Costing Results report (detail or summary mode)

• Transfer to Subledger Accounting process

• Create Accounting process (draft or final mode)

How Partial Period Accruals Are Calculated

The process performs these steps:

1. Calculates the costs for each person for the referenced period, as if each day of the payroll period included the same cost results.

   Note: The process uses the number of calendar days within the referenced period, not the number of days in the work week. It estimates the proportionate costs based on the number of days from the start of the payroll period to the process date you specify when submitting the Calculate Partial Period Accrual process.

2. Creates an offset entry to use when reversing the accruals with the actual payroll costs for the payroll period.

Note: If the referenced results include costs placed in suspense and default accounts, the partial period accrual process costs the results to the same accounts.

Partial Period Accrual Example

You have a partial payroll period for a weekly payroll that begins Saturday, July 29 and ends Friday, August 4. Your accounting periods are monthly, so you submit the Partial Period Accrual process, and specify July 31 for the Process Date. You select a date for the Previous Payroll Period parameter that include similar costs. If the estimated cost is 210 USD, the process creates:

• Partial Period Accrual entries for three-sevenths of the estimated cost

  The process debits 90 USD to the cost account and credits 90 USD to the offset account, with an accounting date of July 31.

  The Partial Period Accrual process uses the Process Date of July 31 that you specified when you submitted the process.

• Partial Period Accrual Reversal entries for the estimated cost

  The process credits 90 USD to the cost account, and debits 90 USD to the offset account, with the accounting date of July 4.

  The Partial Period Accrual Reversal process checks for the Accounting Date for Transfer to General

  Ledger parameter specified on the Payroll Process Configuration page. To open this page, use Payroll Process Configuration. Your enterprise uses the payroll period end date for partial period accrual reversals, which in this example is August 4.

When process completes, process the payroll for the period ending August 4, and submit the Transfer to Subledger Accounting process. The costing for the payroll run creates entries for the actual costs and reverses the partial period accrual entries. The accounting date is based on the Accounting Date for Transfer to General Ledger. Your enterprise uses the process date of the actual payroll run for the accounting date.

You can then submit the Create Accounting process from Enterprise Scheduler and review the results created for the draft journal entries before running the final accounting.

Offset Payroll for Partial Period Accrual Example

In the case of offset payroll scenario, the partial period accrual process locates the payroll period for the previous period date value provided in the parameter and identifies the process dates in the date range. It bases the estimate costs on the processes whose process date are in that period. You have a partial payroll period for a weekly payroll that begins Saturday, July 29 and ends Friday, August 4. Your accounting periods are monthly, so you submit the Partial Period Accrual process, and specify July 31 for the Process Date. You select a date for the Previous Payroll Period parameter that include similar costs. If the estimated cost is 210 USD, the process creates:

In this example, your payroll periods and check dates are:

• Period 1: 17-Feb - 1-Mar-2020 with a check date of 6-Mar-2020

• Period 2: 2-Mar - 15-Mar-2020 with a check date of 20-Mar-2020

• Period 3: 16-Mar - 29-Mar-2020 with a check date of 3-Apr-2020

When you run the partial period accruals process with previous period date as 15-Mar-2020, it gets the payroll period 2 and checks the payroll runs that falls in this payroll period date range. It finds a payroll run with the process date of 6-Mar-2020, which is the payroll period 1. The process uses payroll period 1 with a date range of 17-Feb to 01-Mar to estimate the costs.

You can then submit the Create Accounting process from Enterprise Scheduler and review the results created for the draft journal entries before running the final accounting.

Use Accounting Date as Basis for Accruals

The date parameters of the Calculate Partial Period Accruals process determine which costing results are referenced and in which accounting month.

This table has the dates you enter when submitting the Partial Period Accrual process.

Date Parameter	Calculation	Action
Previous Period Date	Determines which payroll period to use as the basis for estimating the costing results. In the case of offset payroll scenario, the partial period accrual process locates the payroll period for the previous period date value provided in the parameter and identifies the process dates in the date range. It bases the estimate costs on the processes whose process date are in that period.	Select date within a previous payroll period that contains costs. Generally, you select the latest payroll period, but if that period includes atypical expenses, select an earlier period.
Process Date	Determines the effective date used to record estimates The process calculates the proportion to use based on the number of days between the start date of the payroll period and the process date.	Select a process date for the payroll period.

Use Accounting Date to Transfer Results to Subledger Accounting

The Partial Period Accrual process creates an offset entry so that later when you calculate the payroll, you reverse the accruals and enter the actual costing results.

The accounting date used for Partial Period Reversals and for the effective date of the actual payroll run depends on the Accounting Date for Transfer to General Ledger parameter entered using the Payroll Process Configuration. You can access Payroll Process Configuration.

This table shows which accounting date each process uses to transfer the results to Subledger Accounting.

Process	Subledger Accounting Event	Accounting Date Used
Partial Period Accruals	Partial Period Accrual	Process Date
Partial Period Accruals	Payroll Period Accrual Reversal	Configuration parameter determines the accounting date: P, process date of the payroll run EVE, the date earned If the date earned isn't defined for the time periods on the Payroll Definition page, the payroll period end date is used. E, date earned
Costing for the actual payroll run	Run Cost	Configuration parameter determines the accounting date: P and EVE, process date of the actual payroll run E, date earned