Labor Cost Distribution

Labor Cost Distribution [LCD] is a process in that distributes payroll expenses on a monthly basis to our university chartfields. The benefit of the LCD process is that employees can receive one paycheck, while allowing their home department to charge these payroll expenses to one or more chartfields.

LCD processing involves team members from University Personnel and FinanceConnect. Generally, it begins on the last working day of the month and takes about three days to complete. Once the process is complete, departments can run LCD reports to verify the expenses posted to the correct chartfields.

Key Dates

  • 1st of each month - University Personnel receives the paytape record from the State Controller's Office. Once they finish their review, it will be transfered to FinanceConnect for completion.
  • 7th of each month - FinanceConnect completes the paytape process and updates the LCD reports for the prior month’s payroll expenses. Departments should review their LCD reports to determine whether any HR Expense Adjustments need to be processed.
  • 20th of each month - Departments need to submit permanent position funding requests to University Personnel by this date.
  • 25th of each month - Departments need to submit temporary position funding requests to FinanceConnect by this date.

Fiscal Year End

Departments should track their payroll expenses closely ahead of the June pay period. The HR Expense Adjustment module in FTS will be disabled in early June; after which time, we cannot guarantee that HR Expense Adjustments can be processed.

LCD Reports

There are several LCD reports available in the 91ÁÔÆæ@Work system:

  • LCD – By Account Period Earned
  • LCD – By Account Period Paid
  • LCD – By Job Function Period Earned
  • LCD – By Job Function Period Paid
  • LCD – Monthly Pay Check Report
  • LCD – Position Expenditures
  • LCD – Setup Audit
  • Active Position List

Please refer to the LCD Reports [pdf] for detailed information about each report and instructions for requesting access.

Types of Position Funding

There are four types of position funding that can help redirect salary expenses. All positions are set up with a Position Pool to specify the default funding source. It is common for departments to also setup Appointment  and/or Position Level funding to temporarily change the funding source for a semester or academic year.

  1. Appointment Level
  2. Position Level
    • Temporary funding linked to position numbers.
    • Used for highly variable chartfield combinations, such as student assistants paid from RSCA and Faculty Start-up funds.
    • Managed by Position Management Requests.

  3. Position Pool Level
    • Permanent funding linked to position numbers using Pool IDs.
    • Used for new positions and changes to position funding.
    • Managed by Position Management Requests.

  4. Department Level
    • Permanent funding linked to Dept IDs.
    • Used for new departments.
    • Managed by FinanceConnect.

What happens when there are multiple funding types set up?

It’s possible for a position or an employee to have multiple funding types set up in the 91ÁÔÆæ@Work system. In those cases, we can review the LCD hierarchy to determine which funding arrangement will be used during the monthly paycheck process [1 = highest priority; 4 = lowest priority]:

  1. Appointment Level
  2. Position Level
  3. Position Pool Level
  4. Department Level

These funding types are managed in the Department Budget Table [DBT] and will be discussed in the next section - "How do I update funding for future paychecks?"

Use Cases

How do I update funding for future paychecks?

You can manage your payroll expenses by tracking which funding types are active in the Department Budget Table [DBT]. We recommend running the LCD Setup Audit at the beginning of each academic term and after making any funding changes.

You can also refer to LCD Reports [pdf] for additional information.

Once you determine which type of funding needs to be updated, please choose one of the following:

How do I update funding for previously issued paychecks?

When payroll expenses are charged to the wrong fund or department ID, it is important to process an HR Expense Adjustment to redirect the salary and benefit expenses to the appropriate chartfields. 

However, individual paycheck data can only be corrected one time. Due to the sensitive nature of HR Expense Adjustments, we usually limit this access to one employee in each division or college.

If you expect to have HR Expense Adjustment responsibilities in your job, please submit a for FIN108. You should also become familiar with running LCD reports [pdf].