Stanford allows faculty with an academic-year appointment (9 months) to have their salary paid out over 12 months. However, the charge to a sponsor must reflect salary as it is earned, not as it is paid. This becomes critical as salary allocations may change over the year as new awards are received, other awards terminate, or situations change.
In Labor Distribution in Oracle Financials the charge to the operating budget (or other unrestricted PTA) is reduced in order to charge the appropriate amount to the sponsor as the salary is earned.
A faculty member is on a 9-month, 100% FTE appointment for which she earns $90,000. She has requested to be paid over 12 months. She charges 20% of her salary to a grant, 50% to a gift fund, and the remaining 30% to the operating budget. Her Labor Distribution Schedule in Oracle Financials (for the semi-monthly period) would show: