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Section 21 Miscellaneous Enhancements - FunctionalEncumbrance RecastingExampleThe fiscal year of the site is 7/1/2004 to 6/30/2005. An employee is appointedto a position as of 7/1/2004, paid on a monthly calendar, and the annual salaryis $60,000, to one FOAPAL.When the assignment is posted, the Job Labor Distribution History record willhold $60,000 as an encumbrance value and this amount is also inserted in the'To Post' field so that it can be moved to Banner Finance through the NHPFIN1and NHPFIN2 processes.One month passes and the user wishes to post encumbrance adjustments.NBPBUDM is processed with the appropriate COA and a Recast Date of7/31/2004. The calculation determines that, as of the Recast Date, the value ofthe job encumbrance is $55,000. Therefore, compared to the currentencumbrance, -$5,000 needs to be inserted in the To Post field on the Job LaborDistribution History record. When NHPFIN1 and NHPFIN2 are processed, thesystem will generate an encumbrance adjustment of $5,000 to the appropriateFOAPAL.The Encumbrance amount that is calculated and displayed on the base recordof NBAJOBS is not updated with the recast calculated amount from theNBPBUDM process. Rather, the encumbrance amount displayed for the usercontinues to report the fiscal year funds required to pay the job assignment. Asthe job assignment is adjusted by future events, the NBAJOBS form willcontinue to recalculate the total fiscal encumbrance value. The prorated, orrecast, amount of the encumbrance is recalculated and displayed on the JobLabor Distribution History record, distributed across the FOAPAL distributionsassociated with the job assignment.Setup and Payroll ProcessThrough this methodology, the payroll expenditure feed process (PHPFEXP)should no longer generate encumbrance liquidations for the actual amountexpended, as planned encumbrance adjustments, or liquidations are to be postedby NHPFIN1 and NHPFIN2. Therefore, PHPFEXP has been adjusted to determinewhether recasting has been enabled and to use overrides when System Calculatedemployees are to be posted.These overrides are established on the Finance Setup Rules form, NTRFINI, and arelocated in the Encumbrance Override navigation option. This area holds two newFinance Rule Class codes that will be used for recast employees. The first establishesthe override that will be used to direct the Salary Expense posting. HGNL should bespecified here, which will ensure that no encumbrance liquidation will be posted,along with the gross payroll expense.The second Rule Class code establishes the override for Fringe Chargeback Expenseposting. HFNL should be specified here in order to avoid the liquidation of FringeChargeback encumbrances generated through the course of the payroll posting.Human Resources/Position Control Release 7.0 January 2005268 Release Guide Confidential