Using the Vacation Types Type (create) form, you can define a new type of vacation, specify duration and the method of calculationhow vacations of this type are paid and how their durations are determined.

Note. Before you start creating a new vacation type, make sure that all the accrual and deduction types required for this vacation type are defined on the HR and Payroll > Master Data > Accrual and Deduction Types form.

There are four the following required fields on this form: Description, Vacation Days a Year Work Time Type, Accrual Type, Accrued Earnings Type, and Daily Earning Calculation TypeMethod.

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The "Vacation Types Type (create)" form. The Main tab

In the Description field, provide a brief description of the vacation type, which will be used in drop-down lists for selection.In the Vacation Days per Year field, enter the default number of days for this vacation type.  In each contract, you can specify another value if needed.

Select the Main Vacation option if vacation of this type will serve as the main vacation for a specific group of employees or all employees. Note that for each employee, only one vacation type can be selected as the main vacation.

In the Work Time Type field, select how vacation days will be designated in Time Sheets. 

In the Accrual Type field, select an accrual (earning) type defined for this type of vacations on the Accrual and Deduction TypeTypes form. Note. Before you select the accrual (earning) type, make sure that this accrual type has a base for calculation of vacation pay; this list should include sure that it includes all the accrual (earning) types that are used to calculate this for vacation pay calculation for all employees.the employees to whom vacation of this type might be assigned. Generally, an accrual type intended for vacations may include such accrual types as Salary, Overtime, and Accommodation. 

In the Calculation Accrued Earnings Type field, you must select a calculation method select the type of earnings to be used for calculation of average daily earning from the following two options:

• By Base Accruals: The vacation pay per day is calculated based on the accrual type selected for this vacation type. According to employment contract and its changes, the amounts of accruals specified in these documents (and included in the base accruals list for the vacation) are used for calculation.
• By Average Earning: Calculation is based on the average daily amount calculated based on actual earnings Planned Earnings: Calculations will be based on the accrual (earning) types, such as salary, accommodation, listed in the Employment Contracts or its later changes and in the Vacation Accrual Type. The averaging period is 1 month.
• Actual Earnings: Calculations will be based on actual earnings received during the specified number of months for averaging. Selecting this method enables the Number of Months for Averaging field where you can enter With this option selected, the Averaging Period field appears, and you can specify the number of months required for averaging. Notice that only earnings based on the vacation accrual type and included in the employee contract (and its changes) can be used.

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• to be used for averaging.

Use the Daily Earning Calculation Method to select the method for calculation of the average daily earning:

• By Average Number of Days per Month: The amount of earnings (planned) will be deleted by the average number of days per month, which is 30.  Also, you need to specify the number to be used as the Average Number of Days per Month in the field that appears below.  Notice that with this method selected, the first employment month will be not be included in any vacation calculations if the employment start date is later than the 1st day of the month.
• By Number of Calendar Days: The amount of earnings (planned or actual) will be deleted by the number of calendar days in the specified averaging period.
• By Number of Working Days: The amount of earnings (planned or actual) will be deleted by the number of working days in the specified averaging period.

In the Average Number of Days per Month field (appears if the Average Number of Days per Month option is selected as the calculation method), you need to enter the number to be used as the average number of days per month for this calculation method. 

Use the Set Annual Vacation Duration buttons to select how this vacation's duration is determined:

• As Fixed Duration: vacation duration is always the same fixed number of days per year no matter what is the employment length. The duration you can specify in the Days per Year field below, which appears once this button is clicked.
• As Based On Employment Length: duration of this vacation changes as the employment length increases according to the scheme defined in the table below which appears once this button is clicked.

Setting up the vacation's durations based on employment length

To set the vacation duration based on employment length, click the Add button on the table toolbar.

In the Employment Length column, specify an interval for which duration of vacation has specific number of days.

In the Vacation Duration (per Year) column, specify the number of vacation days per year granted to employees with the employment length within this interval.

Select the check box in the Recalculate Vacation Days for Previous Intervals column if the vacation days granted to employees with the employment length within this interval will be recalculated for previous intervals using the duration specific for this interval.

The toolbar buttons

Click the Save button to save the new record or the Save and close button to save the record and close the form.

Click the Edit GL Accounts button to view or edit the GL accounts to be used to post expenses associated with vacations of this type and to accumulate the corresponding vacation pay.

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The GL Account Edit dialog box

Once the accounts are selected, click OK to save them or click Cancel to close the dialog box without changes to these accounts.