1. Determine the Labor and Payroll Process

2. Terminal Learning Objective
Action: Determine the Labor and Payroll Process
Conditions: You are a GFEBS user with access to a computer, the GFEBS training database, applicable GFEBS references, and awareness of Operational Environment (OE) variables and actors
Standards: With a minimum of 80% accuracy, learners must demonstrate proficiency to:
Identify labor cost and payroll activities
Capture labor cost through time-tracking
Communicate Labor and Payroll Reporting Functions

3. Capturing Payroll Cost
To account for financial impact of labor costs and pay/expenses
Payroll costs include salary, benefits (health insurance, workman’s compensation insurance, matching retirement contributions by employer), awards/bonuses, and deductions (payroll taxes, social security, allotments)
Defense Civilian Payroll System (DCPS) – System used to capture civilian payroll details

4. Capturing Payroll Cost (Cont.)
Payroll files are received automatically through an interface or entered manually in GFEBS
GFEBS posts actual payroll commitments, obligations, expenses, and disbursements
ECC sends detailed payroll records to Business Intelligence (BI)
Received Automatically thru an Interface
Entered Manually in GFEBS

5. Full Costs
The entire cost of goods/services received, whether or not the items were paid for/funded by the receiver
FFMIA and the Statement of Federal Financial Accounting Standards 4: Managerial Cost Accounting Standards and Concepts (SFFAS 4)
Require Army to record full costs of payroll and labor
Require reporting of full costs against benefitting cost objects

6. Federal Guidelines on Costing
DOD Financial Management Regulation (DOD FMR)
Defense Finance and Accounting Service (DFAS) Blue Book: A guide to Federal Requirements for Financial Management Systems

7. GFEBS Payroll Interfaces
Two payroll entitlement systems that Interface with GFEBS:
Defense Civilian Payroll System (DCPS)
Army Time and Attendance Production System (ATAAPS)
Other associated Interface systems:
Italian Local National Payroll System (ILNPS)
Korean National Payroll System (KNPS)
US Army Europe (USAREUR) Local National Pay System Interface (ULNAPSI)

8. Budget-Relevant Cost
Payroll or labor costs that affect budget and available funds
Budget-relevant activities include:
Actual payroll expenses – civilian and foreign/local national
Reimbursable or direct charge labor transactions
Actual payroll expenses – military

9. Non-Budget Relevant Payroll or Labor Cost
Do not affect budget or available funds, and are visible only via secondary cost elements
Non-budget relevant activities include:
Labor cost allocations within the same fund, FA and funded program
Labor cost allocations of military time tracking hours

10. Standard Rates / Rate Formula
Standard Rates: Based on estimated or budgeted costs; used to assign costs to cost objects
Standard Rate Formula: Total value of costs planned for an activity type divided by planned output quantity of the activity type
Maintenance Cost Center
Rate of Activity Type = $37.50
The Number of Hours
Worked = 10
$375.00
$375.00
Sender Credited $375.00
Receiver Debited $375.00
The Standard Rate charged is $37.50
per hour worked

11. Detailed Transactions in BI
Conform to policies:
Office of Personnel Management (OPM) requirements for personnel reporting
Meet Office of Management and Budget (OMB) payroll reporting requirements
Enable Analysis:
Labor costs for full time equivalents (FTEs)
Labor rates and variances
Labor and payroll costs for budget and cost planning
Labor costs and payroll expenditure details at individual worker-level

12. LSA #1 Check on Learning Q1: How is labor cost calculated? A1:
Q2: Describe a time tracking system?
A2:
Q3: Payroll file is either received_____through an interface or entered ______ in GFEBS?
A3:

13. LSA #1 Summary

14. Capture Labor Cost Through Time Tracking

15. Related Key Terms
Standard Rates - Total value of costs planned for an activity type divided by the planned output quantity of the activity type (Planned Input $ / Planned Output Qty)
Labor Costs – Work hours multiplied by the Standard Rate for the activity type and cost center for civilian employees, contractors, or military personnel. Labor costs reflect the planned or actual work on various tasks, activities, service, or projects.
Funded Costs - Value of goods or services received based on obligation of funds by the organization performing the work funded in the organization’s AFP
Unfunded Costs - Costs that are financed by another organization or activity's appropriations, which do not result in any obligation of funds by the organization performing the work (e.g., depreciation, military labor and workmen's compensation payments).

16. Key Terms (Cont.)
Time Tracking - Process or system of recording hours worked against one or more cost objects. Productive hours are recorded against the benefiting cost object for the task, activity, or project where the work was performed. Non-productive hours (e.g., leave taken, administrative meetings) are recorded against the overhead cost center or cost object.
Payroll - Costs of employees for a stated period, which includes salary/wages, bonuses, severance pay, benefits, and other compensation paid to employees, as well as, withholdings, collections, taxes, employer contributions and other deductions paid to other organizations.
Activity Type - Categorizes a production or service output provided by one cost center for another for use in internal activity allocations. Activities are assigned rates to be used during activity allocation

17. Refer to VG# 6 & 7 Key Terms (cont’d)
Automated Time, Attendance, and Production System (ATAAPS) - provides an automated, single-source input for reporting and collecting civilian employee time and attendance (T&A) and labor data; interfaced with GFEBS and Defense Civilian Pay System (DCPS)
Budget Relevant Labor Allocations - Labor costs allocated to direct charge and reimbursable orders that consume available budget and funds
Cost Plan – Estimate costs to provide products/ services; anticipates outcomes from those costs to calculate the cost per output or service
Tracking - Process or system of recording hours worked against one or more cost objects

18. Key Terms (Cont.)
Reimbursable – Contractual relationship between two organizations under which the performing activity provides a product or service to the requesting activity, the costs of which are reimbursed.
Receiver Cost Objects - Activities, tasks, and/or projects where an employee works (internal orders, WBS)
Sender Cost Center - Organizational cost centers to which employees are assigned

19. How GFEBS Captures and Allocates Labor Costs
Roles / Responsibilities:
Payroll Interface Processing
Monitor
Cost ECC Display and Reporter

20. Capture Labor Cost
Labor costs are calculated based on the hours reported in a time-tracking system multiplied by the planned standard rate for that employee.
Time-tracking requires individuals to track their time against Cost Objects (e.g., where they perform their work)
GFEBS allocates the cost of an individual’s hours to the appropriate Cost Objects by multiplying the individual’s hours by a standard activity type rate.
Time tracking file is either received automatically through an interface or entered manually in GFEBS.
Two systems used to capture Labor Costs are: ATAAPS and DCPS

21. Inbound Time-Tracking Data from System Interfaces
Used by Army organizations using the Work Mapping Tool (WMT) and ATAAPS to track labor hours
Upon receiving the info from the interface, GFEBS allows allocation costs of labor hours to the appropriate cost objects (i.e., CC, IO or WBS Element)
Hours provided on the inbound file that have been assigned for a specific pay period to a sender cost center, sender fund, sender functional area, sender activity type, receiver cost object, receiver fund, receiver functional area and action code are summed together

22. Inbound Time-Tracking Data from System Interfaces (Cont.)
Labor hours multiplied by standard activity type rates calculate labor costs and perform direct activity allocation on a bi-weekly basis to pass relevant costs from the sender cost center to the appropriate cost object
After the inbound WMT or ATAAPS interface is run, GFEBS users check their business workplace for s regarding file-level errors
If no in workplace inbox, the file processed successfully.

23. Inbound Time-Tracking Data from System Interfaces (Cont.)
- If s are received, the user notifies WMT or ATAAPS of the specific kind of file-level error that occurred:
Data missing in header record
Duplicate file check (file already processed)
Mismatch on record count/file count
File sequence not in order with last file processed (ATAPPS only)
- After error resolution, cost allocation documents are created for all valid posting. Records that do not generate valid postings fall to the time-tracking error extension

24. Mid-Point Check on Learning
Q: This term reflects the planned or actual work on various tasks, activities, service, or projects. A: Q: T/F: The Cost Plan process is the system of recording hours worked against one or more cost objects Q. A reimbursable is a contractual relationship between _____ organizations. A.

25. Examine Time-Tracking Errors
An allocation will not take place for the following reasons: 
Insufficient funds on the receiver cost object for a budget relevant direct activity allocation
Missing or invalid master data on the time tracking file (Fund, FA, Cost Center, or Activity Type)
Derivation rules for the funding or associated cost element were not properly established
Errors are written to an error log and the interface continues processing subsequent records

26. Job Order Numbers (JON) and Work Centers in ATAAPS
Associated with a work center
Represent an organizational element in ATAPPS and are the key link between an employee and job orders
Cost centers sent to ATAAPS populate the Job Order Number field
The cost center in the work center field is identical to the Cost Center value in the Job Order Number field
GFEBS Cost Objects require a description field to help identify the object for those entering time

27. Manual Time Tracking GFEBS
Manual Spreadsheet
Manual Spreadsheet
Summarized Direct Activity Allocation of labor hours to the appropriate cost objects where the work was performed
Manual Spreadsheet
GFEBS
Cost
Object
Home
Cost
Center
Labor Files
Unique File Name
UIC
Work Date/Pay Period
Inbound
Interface
Hours x
Standard Rate
Cost
Object
Cost
Object

28. Direct Activity Allocation
Cost
Object
GFEBS
Home
Cost
Center
Cost
Object
Hours X
Standard Rate
Cost
Object
GFEBS uses the hours on the inbound file, and performs Direct Activity Allocations on a daily basis.
GFEBS then passes costs from the home cost center to the appropriate cost object where the
hours were documented in the applicable time-tracking system.

29. Budget Relevancy
A transaction is budget relevant if the sender side of a transaction involving Fund, Functional Area (FA), and/or Funded Program differs from the receiver side
If a Fund, FA, or Funded Program on the sending side of a transaction is different from the Fund, FA, or Funded Program on the receiving side of the transaction, the direct activity allocation of costs could be budget relevant or have an impact on funds, depending on the organization's treatment of budget and funds distribution.
A commitment item is either budget relevant or cost relevant, not both.
A budget is a guide to spending that ensures all expenses will be paid on time,
while cost are payment rendered for services or products provided.

30. Derivation Rules
Control how the commitment carry-forward and budget carry-over to the new fiscal year are carried out for individual funds management account assignment
Describe the relationship between a sender account assignment for the old fiscal year and a receiver account assignment for the new fiscal year

31. End-Point Check on Learning
Q1: What are the 2 systems that are used to capture Labor Costs?
A1:
Q2: T/F: A time tracking file is only received automatically through an interface.
A2:
Q3. After the inbound interface is run, users check their s regarding file-level errors. If no mails, the file ___ / _____
A3.

32. Practical Exercises 32

33. Practical Exercise: Enter Manual Direct Activity Allocation
Transaction Code: KB21N
Use this procedure to allocate costs from a Cost Center to a Cost Object (e.g. Internal Order,
WBS Element, or another Cost Center). Perform this procedure when an activity charge
(i.e. Labor) is transferred from one cost center to a cost object (WBS Element, Internal Order,
Business Process, etc.).
Note: Please write down the GFEBS assigned reference number at the completion of this
exercise; it is needed to complete the next user procedure (KB23N)

34. Walkthrough: Transaction Code: KB23N
Practical Exercise: Display Direct Activity Allocation
Walkthrough: Transaction Code: KB23N
Practical Exercise 1.2
Use this procedure to display a direct activity allocation. The user is able to view the quantity,
amount, sender and receiver cost object. Fund and Functional Area associated with a direct
activity allocation. In this example the direct activity allocation credits the sender cost center
and debits the receiver cost center using a secondary cost element. This cost element is one
of the attributes on the Activity Type master data records. This activity could also display an
activity allocation from a sender Cost center to a cost object such as WBS Element, Internal
Order, or Business Process. Perform this Procedure when you need to validate posting or
view associated accounting document.

35. LSA #2 Check on Learning
Q1: T/F: When speaking on time track errors, these errors are written to an error log and the interface continues processing subsequent records A1: Q2: GFEBS uses the hours on the inbound file, and performs _____ / _____ / _____on a daily basis A2:

36. LSA #2 Summary

37. Communicate Labor and Payroll Reporting Functions

38. Key Terms Associated with Cost/Labor Reporting Functions
Unfunded Costs
Plan v. Actuals
Standard Rate
Disbursement
Funded Costs
Variance
Actual Costs
General Ledger (GL) Account
Labor / Report Function

39. Examine Detailed Labor and Cost Reports in BI
Compares detailed employee-level payroll records in BI to summary payroll postings made in ECC
Compares detailed employee-level labor records in BI to summary time-tracking posting made in ECC
Provides comparison of the ATAAPS daily labor charges to the DCPS GPF detailed labor records

40. Detailed Labor Cost Report (Cont.)
Identifies variance between standard labor allocations and actual payroll expenses for analysis and adjustment of the standard rates
Provides labor costs by cost object, employee, gross reconciliation code, and fund/functional area

41. Payroll Audit Report
Provides original employee-level, detailed payroll records from various system interface files or manually created files
Displays changes made to master data on payroll records received from DCPS
Displays changes made to non-financial attributes (e.g., civilian type (C-Type)) on payroll records edited directly in BI
Provides the original record, the correction made, and the corrected record in the same view

42. Labor Management Report
Generated by the BI Managerial Reporter. The BI Detailed Labor Management report eliminates sensitive information from the Defense Civilian Pay System (DCPS) file, enabling access to a broader range of users to access labor cost data for analysis.
Provides the following:
System detailed information for time-tracking
Labor costs and summary payroll data by organization
Labor costs by receiving cost object and employee
Cost objects to which an employee charged his/ time
Summary of pay and labor posting from ECC (Cost and Budget Execution)

43. Ad Hoc Queries Use-specific report compiled within BI
May be customized and saved within the user preferences menu by clicking “Save As” button at the top of the screen, naming the query in the description field, and clicking OK to save.
Format may be customized to operate like a pivot table
Formulas available to enable users to calculate based on report attributes:
Right-click on any of the attributes, click on Calculation and Translations, then Formulas, then New Formula.
Enter an Ad Hoc formula for any attribute in the report and create a separate column for calculation results.

44. Additional Cost Reports
Detailed Labor Cost Report – Provides information by employee for payroll and labor tracking
Payroll Audit Report – Used to reconcile and adjust payroll-related issues
Detailed Labor Management Report – Eliminates sensitive information from DCPS files, which enables a broader range of users to access labor cost data for analysis
Payroll Source Data Report – Displays detailed labor from payroll system via interface
Time-Tracking Source Data Report – Provides employee-level analysis for charged hours from the time-tracking system

45. Additional Cost Reports (Cont.)
Budget Alignment and Hours Comparison Report – Compares paid and unpaid hours to charged hours to determine if there is a budget misalignment between payroll and time-tracking
Standard Rate Comparison Report – Displays standard rates (prices) and actual payroll costs by cost center and activity type to enable user to compare standard labor rates to actual labor rates and identify variances
Civilian Manpower Report – Provides data on manpower-related items such as man hours, man months, work years, and end strength, as well as C-Type. Displays data at summary level, across multiple dimensions by fund center, time, and cost centers.
Financial Reconciliation Report - Reconciles payroll detail noted in BI with the payroll summary in ECC for both payroll amount and hours

46. LSA #3 Check on Learning
Q1. It is the total value of costs planned for an activity type divided by the planned output quantity of the activity type (planned input $ / planned output quantity) A1. Q2. T/F: With Ad Hoc Queries, the report format may be customized to operate like a pivot table A2.

47. LSA #3 Summary

48. Conduct Practical Exercises48

49. Walkthrough: Generate Detailed labor Cost Report
Conduct Practical Exercise 18.1
NOTE: There is not a transaction code for this report; instead, the report is pulled out of BI and discussed.
Use this procedure to generate a Detail Labor Cost Report. This report supports GFEBS Labor
and Payroll processes for all civilian and local nationals. Perform this procedure when viewing
detailed labor costs by hours, overtime pay, fringe pay, type hours.
Student Challenge: Perform this procedure and its appropriate step-by-step user procedure by
accessing the PSW user procedures, tutorials, or MilWiki.

50. Walkthrough: Generate Payroll Audit Report
Conduct Practical Exercise 18.2
NOTE: There is no transaction code for this report; instead, the report is pulled out of BI and discussed.
This report supports GFEBS payroll process for all civilians and local national to date. The purpose of this report is
to provide capability to:
View original employee-level, detailed payroll records provided to GFEBS from various sources or system
interface files or manually created files that produce errors and get flagged in the error file.
View changes made to the financial master data on the payroll records provided via interface in order to make
successful summary postings in ECC.
Student Challenge: Perform this procedure and its appropriate step-by-step user procedure by
accessing the PSW user procedures, tutorials or MilWiki.

51. Questions?

52. TLO Summary Action: Determine the Labor and Payroll Process
Conditions: You are a GFEBS user with access to a computer, the GFEBS training database, applicable GFEBS references, and awareness of Operational Environment (OE) variables and actors
Standards: With a minimum of 80% accuracy, learners must demonstrate proficiency to:
Identify labor cost and payroll activities
Capture labor cost through time-tracking
Communicate Labor and Payroll Reporting Functions