This manual contains the basic settings that need to be checked in the ERP system to correctly calculate the number of vacation days and calculate vacation pay.
- Checking the initial settings:
1.1 Vacation accrual - (HR and Payroll Section - Master Data - Accruals and Deductions) in this form it is necessary to choose Work time type (for Annual Leave it is MV), settings about WPS file, Using in End of Service Benefits Calculations and Basic Accruals .
1.2 Vacation types (HR and Payroll section - See Also - Vacation Types) in this form it is necessary to check following data:
Days per year;
Work Time Type (for correct filling Time Sheet documents);
Accrual type (here should be chosen corresponding accrual);
Accrued Earnings Type ( here should be selected Planned Earnings or Actual Earnings);
Daily Earning Calculation Method ( here should be selected one of following variants:
- By Average Number of Days per Month;
- By Number of Calendar Days;
- By Number of Working Days.)
If in Set Annual Vacation duration setting selected Based on Employment Length - it is needed to fill periods for Vacation duration - tabular part).
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:
1. The calculations of days available for vacation for all employees is formed by the Month Closing document (Calculation of Accumulated Vacation Pay documents). In it, for each employee, the system automatically calculates the number of days earned in current month (Currently Earned Days column), total available days for employee (Avaliable Days column) and Accumulated Vacation Pay in each month based on the type of Vacation and the employee’s period of work as specified in the Employment Contract document.
In Calculation of Accumulated Vacation Pay documents it is possible to check attribute Accumulate Vacation Pay (under each Employee) - this attribute automatically marks as selected if same attribute selected in Employment contract document:
2. Calculations of Vacation Pay is also connected to length of working duration for Employee.
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 document for the 6th month since start of working.
3. Basis for calculation:
it is needed to be checked Basis for calculations of Vacation pay.
It might be checked right from Vacation Document - on Basis Accruals tab. And Accruals there should be same as accruals in Employment contract - only in this case system can correctly calculate amount.
4. Additionally, it is necessary to remind the following logic of working with the payroll section - if you have a possible situation in your work when the same employeemight be fired and then rehired, then, for correct calculations for the employee - including the correct accrual and calculations of vacation days:
- 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 the Balances of Accumulated Vacation Pay report on the dismissed employee);
- when creating a document for a new hire - Employment contract, a NEW employee card should be created (Employee master data), while indicating the original individual in it (Individuals master data).
Thank you for being FirstBit Customer!