Overview: Organization Suspense Accounts for Labor
On this page:
- Organization Suspense Accounts Defined
- Reasons Why Payroll Earnings Post to Organization Suspense Accounts
- Identifying, Clearing and Preventing Future Postings
- Frequently Asked Questions
Organization Suspense Accounts Defined
Organization Suspense Accounts (OSA) are holding accounts, set up for every department to account for payroll transaction errors.
- Each department is mapped to a single OSA
- Every time a new Organization is created, the department must supply a PTA to be used for the OSA.
- All payroll transactions posted to the OSA reflect the 51610 expenditure type and are burdened at the highest rate
- An employee's suspense transactions are charged to the OSA associated with the department (Org) on the employee assignment (job) in PeopleSoft.
- Departments are required to clear Organization Suspense Accounts in a timely manner (optimal time would be every time payroll is run.)
- Distribution Adjustments are entered in Oracle Financials to clear OSA balances.
- All balances remaining in the OSA are cleared by the Systems and Reporting Operations team at Year-End Close.
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 GFS systems and employees submitting timesheets.
- Labor Schedule lines total less than 100%. The remaining earnings are booked to the suspense account.
- The PTA listed on Labor Schedule was not valid when payroll was run.
- The PTA assigned in Axess Timecard / Payroll / GFS was not valid.
To prevent and proactively manage Organization Suspense Accounts, review and follow recommended Labor Distribution Best Practices.
Identifying, Clearing and Preventing Future 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 Org Suspense Account. Email notifications are sent twice a month, on the 12th and 27th of each month. The notification includes the employee name, assignment, project, task, award, labor schedule line %, 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 Payroll and Labor Management (PLM) Dashboard in OBI to review all transactions that have posted to the department Organization Suspense Account. See 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.
Note: When reviewing the earnings in the Oracle Labor Adjustment module, clear all transactions posted to the suspense expenditure type 51610 (including SOV and VCR entries).
The Organization Suspense Accounts (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 Salary on Vacation (SOV) and Vacation Credit (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). See How To: Clear Organization Suspense Accounts. If you do not have access to the Oracle Labor Distribution Module, notify the appropriate person to enter the distribution adjustment(s). To find a LD Adjuster in your school / department, see 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. See 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
Frequently Asked Questions
If you have questions, please submit a HelpSU ticket.