This manual contains shows the basic settings that need to be checked check in the ERP system to correctly calculate the number of make sure vacation days and calculate vacation pay are calculated correctly.
- Checking
To check the
initialsettings:
1.1 Vacation accrual - (
Accruals and Deductions settings-
Go to HR and Payroll
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> Master Data
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> Accruals and Deductions
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.
Here, select the Work Time Type (MV for Annual Leave
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),
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set up the WPS file,
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and review the End of Service Benefits
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and Basic Accruals options.
1.2 Vacation types Vacation Types settings-
(HR and Payroll section - See Also - Vacation Types) in , In this form it is necessary , you need to check the following datadetails:
- Days per year
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- : The number of vacation days allotted annually.
- Work Time Type
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- : Ensure this is set correctly for filling out Time Sheet documents
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- .
- Accrual
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- Type: Choose the appropriate accrual method.
- Accrued Earnings Type
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- : Select either Planned Earnings or Actual Earnings
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- .
- Daily Earning Calculation Method
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- : Pick one of
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- these options:
- By Average Number of Days per Month
- By Number of Calendar Days
- By Number of Working Days
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If in Set Annual Vacation duration setting selected As Fixed Duration - it is necessary to fill Days per Year amount.
What should you check if the amount for vacation is not automatically calculated in the system?
Example: for one Employee in Balances of Accumulated Vacation Pay report amount of Accumulated Vacation Pay is missed as on picture below:
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2. Check the reason for missing vacation values:
The vacation days available for all employees are calculated by the Month Closing document (Calculation of Accumulated Vacation Pay documents). In it, for each employee, the system automatically calculates the number of This document determines the days earned in the current month (Currently Earned Days column), the total available days for employee (Avaliable Available Days column) , and the Accumulated Vacation Pay in each month based on the vacation type of Vacation and the employee’s work period of work as specified in the Employment Contract document.
Verify system settings and data entries if this vacation amount is not automatically calculated with month-end closing.
For example, if the Accumulated Vacation Pay amount for an employee is missing in the Balances of Accumulated Vacation Pay report, as shown in the image below:
- In the Calculation of Accumulated Vacation Pay documents
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- , review the "Accumulate Vacation Pay
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- " attribute for each employee. This attribute is automatically selected if it is marked in the Employment Contract document.
- The calculation of Vacation Pay is also
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- linked to the employee's length of
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- service.
In Vacation type it should be filled for Employment lengt in months:
It means for first five months of working duration system will not calculate Amounts for Employee. and first calculation will apear in Month end closing the Vacation Type settings, the Employment Length in months should be specified. This means that the system will not calculate any amounts for the employee during the first five months of their employment. The first calculation will be included in the Month-End Closing document for the 6th month since start of workingemployment.
3.
- Basis for
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- Calculation:
it is needed to be checked You need to verify the Basis for calculations of calculating Vacation payPay.
It might be checked right from Vacation Document - on Check this directly in the Vacation Document under the Basis Accruals tab. And Accruals there should be same as accruals in Employment contract - only in this case system can correctly calculate amount.The accruals listed here should match those specified in the Employment Contract.
4.
- Additionally,
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- keep in mind the following
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- payroll logic: If an employee is terminated and then rehired,
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- it’s crucial for
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- in the Termination dismissal document, the remaining vacations accumulated for the employee must be written off; (otherwise, the system will pull up the remaining vacation days that were accrued but not written off/compensated when the employee was dismissed into accurate calculations—including correct accruals and vacation days—to handle their records properly.
In the Termination Dismissal document, make sure to write off any remaining accumulated vacation days. Otherwise, the system will include these unaccounted vacation days in the Balances of Accumulated Vacation Pay report
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for the dismissed employee
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.
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When creating
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an Employment Contract document for a new hire
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, a
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new employee card should be
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set up in the Employee master data
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. Make sure to link it to the original individual in
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the individual master data
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.
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