The process identifies the labor object code groups for this report. Then it consults the Labor Object Code table to identify all object codes associated with these groups and a Financial Object Fringe or Salary Code value of 'S' (indicating that the object code identifies salary & wages.)
Note that object codes and entries in the Labor Object Code table are specific to a fiscal year. So the process considers the report fiscal year(s) as part of this determination.
Employees with Labor Ledger entries with the appropriate object codes, as determined by this step, continue to the next step.