Description: For employees on a 9/12 pay schedule, encumbrances may not align with how salary expenses are recognized across the work period. While 9/12 employees work nine months and are paid over twelve, Workday’s delivered encumbrance logic spreads encumbrances evenly across the twelve‑month pay period rather than aligning them to the nine‑month work period. Because payroll expense calculations at CSU have been customized to recognize salary expense during the actual work period, encumbrances and payroll expenses do not liquidate consistently month to month. This results in ongoing timing variances between encumbrances and actual payroll expenses that fluctuate throughout the year, particularly during non‑work months when employees are still receiving pay but no expense is being recognized.

Priority: High

Status: The project team is proposing solutions to executive leadership for long term solutions.

Group(s) Impacted: Finance Community

Point of Contact: Emily Claffey