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For information on calculation of Average Daily Salary amount see the Parameters for Average Daily Earning Calculation section in the Setup of Vacations.

For a newly hired employee, accruing of the vacation days and accumulation of vacation pay is not performed during the initial period of employment when the employee has no right for vacations, for instance, in UAE the employees can have vacation only when their length of service exceeds six months. Then, during the month-end closing for 6th month, the application credits the employee record with the following number of vacation days:
Vac_Days_per_Year *6/12

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To process a new request for a particular employee's annual paid vacation, main or additional, create a new Vacation document and select Vacation Calculation as the transaction type, specify the types and dates of vacations, and click the Calculate button on the toolbar. For more details, refer to Creating a Vacation.

Vacation payout is a sum of vacation payout for Main vacation and payout for additional vacation (if such vacation was requested). Each part is calculated as Average Daily Earning multiplied by the requested number of vacation days.

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If according to the organization's policy, accrued vacation days that were unused during the current year of service, should be reimbursed, you also can use the Vacation Compensation transaction type. For more details, refer to Creating a Vacation.

Paying to Employees

To actually create a payment to the employee, you will need to generate a Payroll Sheet and then generate a payment according to the selected payment method: Cash Payment, Cheque, or Bank Payment (direct deposit to the employee's bank account).

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For more information, refer to Overview of WPS file processing.

To generate a payslip for one employee or payslips to multiple employees, you can use the following report: HR and Payroll > Reports > Payslip.

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