Expense

There are two primary types of transactions you need to understand to work in the Banner Finance environment at UNM.  One involves funds coming into an index, generally as revenue.  The other involves funds going out of an index, primarily as expenses.

Expense

Expense represents funds your department has spent to obtain goods or services to further UNM business within your department.  There are two major categories of expenses: salary expense, and non-salary expense.

Salary

Salary expense is generated through the Human Resources/Payroll module in Banner.  This module allocates labor and benefits expenditure based on the percentages identified by the department.  Time entry reporting may adjust the posting of expenditure for bi-weekly, or non-exempt, employees. An Electronic Personnel Action Form, or EPAF, is initiated in the department in order to modify or change labor distributions.  EPAFs are generated in LoboWeb, also called Banner Self-Service.

Non-standard Payment forms routinely go through the payroll process and impact salary account codes.  Non-standard payment forms can be used either to pay a one-time extra compensation or can be used to post planned extra compensation.

Account codes related to labor and fringe benefit expenses begin with a two (2).  Due to complex payroll reporting requirements, departments cannot create journal vouchers to move labor expenses.  Labor expenses must be reallocated using the PHAREDS process.

Non-Salary

Expenses that do not go through the HR/Payroll module are non-salary expense.  These include all the goods and services purchased by your department.

Goods, or tangible items, are the things you buy, such as copy paper, a new computer, lab supplies, or books. 

Services, or intangible products, are the things you buy that involve paying someone to do something for the benefit of the University.  The types of services commonly purchased include paying to attend a conference or event someone is sponsoring, transporting the deceased, and other professional services such as electrical repair, photography, or attorney fees. UNM employees cannot be paid for services outside the HR/Payroll module.

The tax reporting requirements and analysis concerning services can be complex.  Processes are in place to prevent services which should be provided by an employee from being erroneously paid as non-salary expense.  Sometimes additional paperwork is required to determine if this is the case.