1. Define the Labor/Payroll Process

2. Terminal Learning Objective
Action: Define the labor/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:
Communicate how GFEBS captures labor and payroll costs
Identify the GFEBS interfaced relationship to capture cost
Determine the difference between budget relevant and
non-budget relevant labor and payroll costs
Communicate how standard rates are used to allocate labor costs to the benefiting cost objects
Communicate why detailed labor and payroll transactions are loaded into Business Intelligence (BI)

3. Capturing Labor Cost and Payroll Activities
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 Costs
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. Check on Learning #1 Q1: How is labor cost calculated? A1:
Q2: Describe a time tracking system?
A2:
Q3: When capturing payroll costs, what does GFEBS post?
A3:

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

9. Budget-Relevant Costs
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

10. 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

11. Standard Rates and Standard 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

12. 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

13. Check on Learning #2 Q1: What does full cost include? A1:
Q2: Payroll file is either received_____through an interface or entered ______ in GFEBS?
A2:
Q3: Payroll or Labor costs that affect budget and the availability of funds is considered?
A3:

14. Module “D” Summary Labor and Payroll Reporting Functions
Detailed Labor Costs Report
Payroll Audit Report
Capture labor cost through time tracking
Calculated labor costs
Interfaced time tracking files
Automated Time Attendance and Production System (ATAAPS)
and how ATAAPS Interfaces with GFEBS
Job order numbers (JON) and work centers in ATAAPS
Manual Time Tracking
Direct Activity Allocation
Budget and Non-budget Relevancy
Time Tracking Errors

15. Module “D” Summary (Continued)
Capturing Payroll Costs
GFEBS being the system of record for the general fund
Defense Civilian Pay System (DCPS)
Interface between (DCPS) Gross Pay (GPR) file and GFEBS
Payroll Accruals
Military Pay: The Defense Joint Military Pay System (DJMS) and future of Integrated Personnel and Pay System-Army (IPPS-A)
Foreign/Local National Pay Systems that Interface with GFEBS (Italian, Korean, and German)
Manually pay files in standard file format
Maintenance of Personnel Master Records
Labor/Payroll Process
Time Tracking
Full Cost

16. Statement of Federal Financial Accounting Standards 4 (SFFAS 4)
DOD Financial Management Regulation (DOD FMR)
Systems that interface with GFEBS
Standard rates and standard rate formula
Performed Transactions
Pulled from BI – Generate Detailed Labor Cost Report
Pulled from BI – Generate Payroll Audit Report
KB21N – Simulate a Manual Direct Activity Allocation
KB23N – Display a Manual Direct Activity Allocation
S_ALR_ – Generate Cost Centers: Actual/Plan/Variance Report
S_ALR_ – Generate Orders: Actual/Plan/Variance Report
KOB1 – Display Actual Cost Line Items for Orders

17. Terminal Learning Objective
Action: Define the labor/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:
Communicate how GFEBS captures labor and payroll costs
Identify the GFEBS interfaced relationship to capture cost
Determine the difference between budget relevant and
non-budget relevant labor and payroll costs
Communicate how standard rates are used to allocate labor costs to the benefiting cost objects
Communicate why detailed labor and payroll transactions are loaded into Business Intelligence (BI)