CHANGES to Object Codes in Payroll Source Accounts in new HRMS

Cost Accounting by Function - Overview of Function Coding
CHANGES to Object Codes in Payroll Source Accounts in new HRMS
(Last Updated 12/18/2002)

December 18, 2002

This is a reminder of an important "business process change" related to object codes that will be effective with the new Human Resource Management System (HRMS):

OBJECT CODES IN HRMS WILL BE USED CONSISTENTLY ON ALL PAYROLL SOURCE ACCOUNTS TO INDICATE THE TYPE OF EFFORT OR FUNCTION.

This is a change from the current Personnel/Payroll System in two ways:

1. Stipend-related budget codes 26 and 27 in the current Pers/Pay system are always accompanied by object codes 00 or 90. In the new HRMS the object code appropriate to the type of effort (20 for organized research, 15 for clinical practice, etc.) will be used on both budget codes 26 and 27.

For policies and guidelines related to stipends, fellows and trainees, refer to:

- Memorandum from Joe McGarry: "Expense Classification of Fellowship Stipends" dated January 11, 2000

- Research News dated June 10,2002: "Fellow/Trainee Payments - Is it Supplementation or Compensation?"
http://intramed.wustl.edu/r.nsf/0/53C9EDEE2D00C90786256BD00073790E/

2. Object codes that reflect a type of earnings and not a type of effort will no longer be used. These object codes will NOT be used in the new HRMS:

98 Bonus or incentive (will be earnings code BON)
97 University contribution paid as wages (will be earnings code ANN)
96 Relocation (will be earnings code RLN, RLT or RLV depending on tax status)
95 Spousal Travel-taxable value (will be earnings code SPO)
90 Stipend for LTD (will be earnings code SLT)
60 Incidental (will be a variety of earnings code such as HON for honorarium or INC for incidental-other)

Instead of using these object codes, the object code denoting the type of effort should be used. For example, a bonus payment that is rewarding clinical practice activity should be coded with object 15, a bonus that is rewarding research activity should be coded 14, or a bonus rewarding teaching should be coded 13.

Since the type of effort dictates the choice of FIS account to charge, the object code is often determined by that account. Examples include:

Object code 20 is required on organized research and research training sponsored funds. Stipends paid from training grants will now be sourced to budget/object 2620, not 2600.

Object code 14 is required on department research accounts. Payments to research fellows and trainees are often sourced to department research accounts when funds are provided by the department.

Object code 15 is required on clinical practice accounts. Payments to clinical fellows and trainees are often sourced to clinical practice accounts when funds are provided by the department.

Object code 13 is required on instruction accounts. When funds are provided by the department, payments to predoctoral students are often sourced to instruction accounts.

If stipend-related payments are charged to joint use accounts, a valid object code such as 13, 14 or 15 will be required. An object code of 00 will not be allowed.

A summary table of account functions and payroll object codes is available on this web site.

NOTE THIS EXCEPTION: Object code 50, used for paid leave, will still be used in HRMS. While it does not reflect the function being charged for the leave, there were technical problems in eliminating it that could not be solved prior to HRMS implementation.

DATA CONVERSION FOR HRMS

Existing authorizations on payroll source accounts with budgets 26 and 27 (all of which use object codes 00 and 90) will be converted to use functional object codes in the new HRMS. If the proper object code is not clear from the nature of the position or the account being charged, you may be asked to provide it by the Budget Office. These new object codes can be reviewed on December 30, 2002, when the HRMS becomes available.

FOCUS DATABASES

The object codes 98, 97, 96, 95, 90, and 60 will continue to be present in the Focus Perspay database so that existing reports and data feeds can function correctly. For the types of earnings listed above (bonuses, contribution paid as wage, etc.) the object code used in HRMS will be deleted and replaced by the object code indicating the type of earnings (98, 97, etc.) when the account number is copied to the Focus database.

For example, a bonus paid in HRMS with earnings code BON may be coded with budget/object 1115. When this distribution record is passed to Focus, the budget/object will be changed (overwritten) to 1198. Similarly, a stipend paid in HRMS with earnings code STP may be coded with budget/object 2614. When this distribution record is passed to Focus, the budget/object will be changed to 2600. A payment for LTD in HRMS with earnings code SLT may be coded with budget/object 2714. When this distribution record is passed to Focus, the budget/object will be changed to 2790.

Questions regarding these changes should be directed to the AIS Helpdesk or to your assigned Budget Analyst.

Please send your comments to: FinanceComments@msnotes.wustl.edu