The purpose of this guide is to provide Costing Allocation Partners, Project Managers, and Workday Payroll Expense Cost Correction Initiator Cost Center security roles the steps to complete a Payroll Expense Cost Correction (PECC) in Workday. PECCs are used to correct a payroll expense that should have been expensed to a different combination of Chart of Account or POET(AF) values.

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• Keep in Mind
  • Terminology
  • General
• Initiating a Payroll Expense Cost Correction
• How to Determine if a PECC Transaction has been Processed by Payroll

Keep in Mind

Terminology

• Chart of Accounts (COA): The Chart of Accounts is a 10-segment string designed to track income and expenditure at the University. (Entity, Organization, Account, Fund, Purpose, Program, Activity, Site, Affiliate, and Future).
  • The Organization COA segment is referred to as Cost Center in Workday.
  • The Account segment is automatically generated in Workday when payroll is processed and does not require manual entry.
• Costing Allocation: Costing allocations are the funding composition for an employee’s pay.
• Labor Distribution: Labor Distributions (Payroll Actuals) are the payroll accounting journals which are posted into Oracle, showing the dollar amounts of the payroll distribution.
• Payroll Expense Cost Corrections: Payroll Expense Cost Corrections (PECCs) are used to move payroll expenses from one combination of COA or POET(AF) to a different combination of COA/POET(AF) within Workday.
• POET(AF): POET(AF) is the string used to charge expenses under Project Portfolio Management (PPM). Project Portfolio Management (PPM) is a module available in Oracle Cloud ERP that supports project cost accounting, such as the management of sponsored and non-sponsored projects at the University. PPM is a subledger of the University’s General Ledger. (Project, Organization, Expenditure Type, Task, Award, Funding Source).
  • The Project POET(AF) segment reflects as PPM Projects in Workday.
  • The Organization COA segment is referred to as Cost Center in Workday.
  • The Expenditure Type segment reflects as Account in Workday.
    • This field automatically generates in Workday once payroll has processed and does not require manual entry.
  • The Award segment reflects as Grant in Workday.
• Transfer Amount: Transfer Amount typically refers to the sum of money moved from one combination of COA or POET(AF) segments to another.
• Worktags: A Workday-specific term that refers to the COA/POET(AF) segments. Segments is an Oracle term and is referred to as Worktags in Workday.

General

• Security access to complete a PECC transaction is configured as noted below. For more information about Workday security roles, review the Workday Role Definitions Knowledge Base Article.
  • Costing Allocation Partner (CAP)
    • Assigned at the Supervisory Organization level (i.e., CSL Dean of Students in the University, COMM Office of the Vice President for Communications, etc.).
    • Provides access to assign costing allocations and complete payroll expense cost corrections for any worker position that resides in the Supervisory Organization(s) in which the role is assigned.
  • Workday Payroll Expense Cost Corrections Initiator Cost Center (WDPECC)
    • Assigned at the Organization/Cost Center level (i.e., 79100-CSL Dean of Students, 17100-Office Of VP Communications, etc.).
    • Provides access to complete payroll expense cost corrections for any worker position that is funded by the Cost Center(s) in which the role is assigned.
  • Project Manager (PM)
    • Assigned at the Project level (i.e., UID1001234: Seinfeld Discretionary Fund, USP1004321: Kramer General Sponsored Project, etc.).
    • Provides access to complete payroll expense cost corrections for any worker position that is funded by the Project(s) in which the role is assigned.
• IMPORTANT: It is vital to select the Worker Position where the payroll expense(s) requiring correction was originally charged when searching for payroll expense transactions. The Worker Position field may not auto-populate with the position that requires payroll expense correction therefore careful review is required.
  • The ability to correct a payroll expense depends on the security access held by the user, and this access varies by position. If a position is chosen where appropriate security access does not exist, then an error message will appear.
    • For example, if you are a Costing Allocation Partner for the UChicago Allstars supervisory organization and you have a worker who holds two positions, Position A within the UChicago Allstars supervisory organization and Position B within the Maroon Members supervisory organization, you will only be able to correct payroll expenses charged under Position A since you only hold Costing Allocation Partner access for the UChicago Allstars supervisory organization.
  • Prior to initiating a PECC transaction, gather the position number that is tied to the payroll expense that requires correction. Note the position number and not just the position title because the number is a unique identifier, and a worker may hold multiple positions with the same or similar titles.
• Comments and Attachments are optional. If either Comments and/or Attachments are included, these must be appropriate and relevant. Do not include personal information.
• When a payroll expense cost correction requires transferring payroll expenses from one Entity to another, the Entity that was incorrectly charged must initiate the payroll expense cost correction. The Entity that should have been charged is unable to initiate the transfer due to security restrictions.
• Employees in the Academic 9 Over 12 group are paid from a restricted PECCS earning code. If you need to move charges for such employees, please create an Ask a Payroll Question ticket and request to have the charges moved to the desired account.
• Fringe Benefits are not included in the Transfer Amount because they are generated through an outside process and will vary depending on the target worktags. Fringe benefits will ALWAYS follow the earning costing allocation so it's important to note that these are net zero salary adjustments, but fringe may change based on how the payroll expense is adjusted (ex: changing from a Federal Fringe rate to Non-Federal Fringe Rate).
• PECC transactions with target POET(AF) worktags require approval after submission.
• PECC transactions with target COA worktags do not require approval after submission. The process will automatically complete, but this status only reflects the completion of the Workday business process. The transaction will still need to process through payroll.
  • Once submitted and approved, PECCs are processed according to the payroll calendar located on the Payroll Intranet page.
• To cancel a PECC that has already been submitted:
  • For POET(AF) transactions that have not yet been approved, you will need to reach out to the approver to cancel it. You can identify the approver through the PECC hub.
  • If the POET(AF) transaction has successfully completed but has not posted, OR, if the transaction is a COA transaction that automatically successfully completes, you will need to submit an Ask a Payroll Question ServiceNow ticket to cancel it. 
  • If payroll has already processed the payroll expense cost correction transaction, then you will have to initiate another PECC transaction to correct the amount.
  • See the How to Determine if a PECC Transaction has been Processed by Payroll section of this document for more information.

Initiating a Payroll Expense Cost Correction

1. Login to Workday using your CNetID and password. Select Sign In.
2. Within the Search at the top of the homepage, populate Payroll Expense Cost Correction Home (PECC Hub) and select enter on your keyboard. Choose the corresponding PECC Hub task.
   1. The process can also be initiated directly from the Employee Profile by navigating to the Pay section on the left and then selecting the Start Payroll Expense Cost Corrections tab along the top. If you initiate this way, proceed to step 6 and ensure the Worker Position field accurately populates.
3. In the PECC Hub, select the Create Payroll Expense Transfer option, located in the left-hand navigation pane.
   1. The left-hand navigation pane may appear collapsed.  If you do not see the Create Payroll Expense Transfer option, look for and select the expand/collapse icon, represented by an arrow next to a vertical line and located in the top-left corner of the PECC Hub.
4. Select the Click here to initiate transfer button.
5. On the Search Payroll Expense screen, select one of the options below based on the search criteria to be used to find a worker:
   1. Name or Employee ID: After selecting this option, the Worker field will appear. Enter the name or employee ID of the worker in this field. This option will only return active employees.
   2. CNetID: After selecting this option, the CNetID field will appear. Enter the CNetID in this field to locate the appropriate worker. This option will only return active employees.
   3. Terminated Worker: If the worker has been terminated, ensure this option is selected, as the other search options will not return results for terminated employees. After selecting this option, the Terminated Worker field will appear for you to enter the corresponding search criteria.
6. Once the worker is selected, review the CNET ID and Worker Position. Ensure the appropriate Worker Position is selected.
   1. REMINDER: Careful review and consideration are needed for the Worker Position field to ensure the correct position is selected. Note the position number and not just the position title because the number is a unique identifier, and a worker may hold multiple positions with the same or similar titles.
   2. For employees with position changes, the prior position may need to be selected.
7. (Optional) Choose the Account Segment Type to make the search more granular. It is not required but is highly recommended if an employee will have complex funding or if using a large date range to search. To see all payments issued to an employee within a particular period, it’s best to leave this section empty.
   1. Do not enter target worktags here; this information is added during step 12d of the process.
8. Select Pay Period Date Range or Effort Date Range.
   1. Searching by the Pay Period Date Range or the Effort Date Range will vary depending on the type of adjustment. For example, an employee could have earnings paid in the pay period of November that were earned in the period of October. Searching by effort date range would return all the earnings for the period of October (including those paid in November for the period of October). Searching by pay period date range will return all results for that pay period (including retroactive pay for prior periods).
   2. The earliest From date that can be entered is 6/23/2024. This is the first day that payroll was run under COA/POET(AF) worktags.
9. (Optional) Choose the Earning Code to make the search more granular.
   1. If the search is made by earnings, only certain earnings may be available for an adjustment. If an earning is expected and is not visible (e.g., adoption benefit program), a payroll administrator should be contacted.
   2. REMINDER: Employees in the Academic 9 Over 12 group are paid from a restricted earning code. If you need to move charges for such employees, please create an Ask a Payroll Question ticket and request to have the charges moved to the desired account.
10. Select Search.
    1. Results are limited by security role. Users that do not have security access to initiate PECCs will receive an error message when attempting to search payroll expenses.  If an employee believes they should have access to initiate PECCs, they should contact their manager or HRP to submit the ServiceNow Workday Role Security Request form on their behalf.
       1. Double-check your search criteria and ensure that the correct position is selected. Security access typically varies from one position to another. Additionally, your search criteria may be too restrictive if specific Account Segment Type(s) and/or Earning Code(s) are being used in the search criteria. Remove values from these sections and re-initiate your search.
    2. Results will only return for payrolls that have been processed. Reference Payroll Paydates to understand when data may be available.
    3. IMPORTANT: If more than 50 rows return in the results, the next screen will not allow you to select rows to make a change. You must select Back to modify and narrow down search criteria.
11. In the Select Payroll Expense Transfer(s) screen, select the Check Box, located in the far-left column, for the specific payroll expense(s) that need correction. If more than 50 rows are returned, the Check Box will not be available. Select the Back button to modify and narrow down search criteria.
    1. You can select a maximum of 15 rows for each PECC transaction.
    2. IMPORTANT: Each completed PECC transaction that matches the entered search criteria and has been processed by payroll will appear in the search results as three rows: one row displaying the account originally charged in error, one row with a negative amount reflecting the correction from the account originally charged in error, and another row with the same amount, but positive, representing the corrected charge to the new account. Any row with a positive amount can be selected to initiate additional cost corrections, as needed, if the Available Amount is greater than zero. If multiple PECC transactions exist for the employee based on the selected criteria, each will have its own set of rows. Understanding the flow of funds requires review of the Effort/Period End Dates, Worktags, and the Original and Available Amounts columns. Cross-referencing a list of previously completed PECC transactions for the worker may also assist with interpretation.
       1. For example, a payroll expense that has an Original Amount of $1000 charged to a COA but then had $500 of that moved to a POET(AF) would display the following rows:
          1. The original transaction row with COA Worktags, an Original Amount of $1000, and an Available Amount of $500.
          2. The negative transaction row with the same COA Worktags as the original transaction, a negative Original Amount of $-500, and an Available Amount of $0.
             1. This row only appears after Payroll has been processed.
          3. The positive transaction row with POETAF Worktags, an Original and Available Amount of $500.
             1. This row only appears after Payroll has been processed.
12. Select Next to be brought to the Transfer Details screen. Each transaction appears in the Transfer Details table.
    1. Populate the Transfer Amount.
       1. This value cannot be higher than the Available Amount.
    2. Under the Target Account Segment Type column, select either Chart of Accounts or Project Portfolio Management, whichever is applicable.
    3. Under the To Worktags column, populate the Worktags fields.
       1. If the Target Account Segment Type is Chart of Accounts, the following Worktags are required: Entity, Cost Center, Fund, Purpose, Program, Activity, and Site.
       2. If the Target Account Segment Type is Project Portfolio Management, the following Worktags are required: PPM Project, Task, Cost Center, Grant (sponsored projects only), and Funding Source (sponsored projects only).
       3. When entering COA/POET(AF) worktags, custom validations and Oracle Cloud cross validation rules run, which may result in a warning or error. If a warning or error occurs, please work with your department’s finance team.
          1. See the Chart of Accounts Cross-Validation Rules (as of 7/16/2024) Knowledge Base article for more information.
    4. If a transaction row needs to be removed, select the Minus icon located in the far-left column to delete the row.  If a new transaction row needs to be added, select the Plus icon located at the top of the far-left column. Use the Hamburger Menu (icon with three dots followed by three dashes) to select from the list of available Journals.
13. Select Review.
14. In the Review and Submit Transfer screen, review the Journal Line details table at the top and then answer any required questions located directly below the table. Questions can include:
    1. How did the error occur?
       1. Always required.
    2. Why is the expense appropriate for the account being charged (how does the cost benefit the project purpose)?
       1. Transfers to POET(AF) worktags only.
    3. If over 90 days, why is the transfer beyond 90 days since the original charge was made?
       1. Conditional based on the type of Target Account Segment Type selected in the previous step.
    4. Additional Comments?
       1. Optional. If comments are added, ensure they are relevant and appropriate. Do not include personal information.
15. (Optional) Add any supporting documentation under the Attachments section by selecting Upload and using the file explorer to add appropriate document(s).
    1. If attachments are added, ensure they are relevant and appropriate. Do not include personal information.
16. Select OK.
17. Review the pop-up window for confirmation and select the X in the top-right corner to close it.
18. Select either Initiate new Transfer or Back to Home Page hyperlinks or select Done at the bottom of the page to return to the PECC hub.
    1. Reminder: Transactions with target POET(AF) worktags will route for approval whereas transactions with target COA worktags will not route for approval, but rather automatically complete.
       1. Access the View My Transfer Requests tab in the left-hand navigation pane of the PECC Hub to see the Transaction Status and Awaiting Persons who are pending approval (if applicable).
19. If the PECC transaction is sent back for correction, the reason for correction will not be visible directly in the sent back task.
    1. To view the reason for send back, navigate to the Archive tab of My Tasks and search for the PECC transaction using the Request ID (starts with PECC000 and is followed by additional digits). Within the archived task, select the Process tab and review the Comment column to see the Send Back Reason. Return to the All Items tab of My Tasks, make applicable corrections directly in the sent back task, and then select Submit.
    2. If a PECC transaction needs to be sent back to split costing allocations (add a new line to the transaction), then the approver must Reject the request instead of sending it back. If the transaction is accidentally sent back, then the approver must cancel the business process.
20. Once the PECC is processed, it will appear in the GL/POET(AF) on a periodic batch basis.

How to Determine if a PECC Transaction has been Processed by Payroll

1. Review the PECC transaction in Workday to see if it is Successfully Completed.  There are two different ways you can do this:
   1. Run the RPT All PECC Transactions report in Workday and use any criteria (suggest using Worker or Request ID fields) to locate and review the PECC transaction status. Once you select Submit, a table will generate with PECC details, including the Business Process Status.
   2. Go to the worker’s profile in Workday and select the Pay tab from the left-hand menu and then locate the sub-tab of PECC Transactions for User. On this tab you can locate and review the PECC transaction Business Process Status.
2. If the PECC transaction is Successfully Completed, cross-compare the Date Initiated against the applicable pay group’s payroll deadline to see if the PECC transaction was initiated before the payroll deadline. 
   1. If the PECC transaction was submitted before the applicable payroll deadline, it was most likely processed by payroll and fully completed.
   2. If the PECC transaction was submitted after the applicable payroll deadline, it most likely has NOT been processed by payroll and will process in the next payroll run.
3. To confirm if payroll has processed a PECC transaction, go to Oracle and select the Orbit Reporting Hub (located under the Reporting Hub tab).
   1. Within the reporting hub, select Reports on the left-hand side and then choose Shared with me.
   2. From there, double-click into the Payroll Dashboard folder and choose the Workday Payroll Detail report.
   3. You can then enter applicable search criteria such as the worker’s name, CNetID, pay period dates, etc. to review all payroll transactions that meet the criteria.
   4. Within the report results, review the transaction details and look for the column labeled PAR Sequence Desc.  Any rows that have data in this column may be a PECC transaction.  To further confirm, review all rows with data within this column and determine if there is a corresponding debit and credit line for the PECC transaction.
      1. For example, if moving payroll from a COA to a POETAF, you should see a row containing the COA details and a negative Transaction AMT (this is the debit row) and then you should see another row containing the POETAF details with the same Transaction AMT, only as a positive amount (this is your credit row).