Earned leave (such as vacation or paid time off) can be accrued on a monthly or yearly basis. Yearly accrual is used when you want employees to earn the full year's allowance in the first month.
For example you award a group of employees 5 days sick leave per year but rather than accruing it month by month you simply give everyone 5 days at the start of the year and leave it to the employee to decide what to use when. Use yearly accrual for time-off rules with smaller balances especially when employee's have little control when it can be taken.
Setting up Year End Time-off Accruals
Your system administrator can setup Year End Time off Accruals. Go to System > Setup HR > Time Off Types and do the following:
- Make sure you have created a new or selected the Time Off Type against which you want to setup year end accruals. For example we have selected 'ERNL'
- Under Balances, Accrual and Carry Over section select 'Yearly' as Accrual Calculated
- Enter the month from which you annual accrual cycle starts. Unless you opt for the option to start the annual accrual cycle on the anniversary of the employee's hire date the annual accrual cycle always starts on 1st of this month. Also enter the number of days to accrue in this month (or check 'Based on months of service' at the bottom)
- Employees hired mid-way through the accrual year can either be awarded a prorata based on the number of complete months following hire, the number of complete months including their hire month or a pro-rate calculation based on the number of (calendar) days remaining in the accrual year post hire date divided by 365 (total days in year). For example if John is hired on March 15th and he is entitled to 5 days sick leave per year then awarding accrual for month following hire will accrue 5 x 9/12 = 3.75 days whereas awarding for 1st of month when hired will result in an accrual of 5 x 10/12 = 4.17 days
- Anytime a time-off rule or type is modified after loading up initial balances you need to decide whether it has a retrospective impact on prior monthly accruals or not. With 'Accrue Changes from' you can choose whether the new rule kicks in from the 'Start of next month' or to re-run accrual from 'Start of Current period' or completely redo the entire year by 'Start of Current Vacation year (back-dated)'. Talk to you iBE Support Consultant about the best option for you here as it depends very much on the date for which you uploaded or imported legacy balances.
- Click on 'Save'
Note: Accrual runs overnight so changes will not take effect until the next day, unless you manually fire the accrual engine job (via System > Data > Background Jobs menu).