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How Accruals Update
Overview
The accrual processing will follow the accrual policy
and reset schedule (if any) and the payroll calendar's accumulator, period
begin, and end dates. The actual updates occur during the initialization
process when the payroll is processed, which is typically on the pay run
date.
During Payroll's accrual processing, the system searches
for all employees with an Employee Benefit Detail for a benefit that accrues
hours: the
Accrue Hours indicator and the
Hours Accrual Code have been
selected for the Benefit Code.
Employee Link: PTO Benefits
are assigned on the Employee Benefits Detail and are paid during payroll
time entry.
Processing Logic
Step
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Description
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Step 1
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Accruals will only process if the pay calendar is set
up as type SCHEDULED and the process accrual indicator is selected. In
addition, only employees with an Employee Status code defined to accrue
hours (ie. ACTIVE) are included for accrual updates.
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Step 2
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Employee benefit record current
accrual balances are zeroed-out for employees in the Pay Group defined
on the pay calendar.
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Step 3
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The employee benefit record is updated for:
- Effective Date from Accr. Begin
Date defined on accrual screen. This is also the date that service is
determined by subtracting the pay period end date from this date.
- Max Carry Over Hours updated
from accrual screen.
- Max Accrual Hours updated from
accrual screen.
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Step 4
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Benefit Transfers are then processed. (See the following
points.)
- Transfer benefit code must exist
on accrual screen and EE benefit record that transfers hours must be in
effect (ie. Not terminated).
- Transfers will process when the
New Year Period is defined on the pay calendar and Transfer Year End is
checked on the accrual screen; or when Transfer Date on is specified and
the date defined is within the pay period; or when Anniv Transfer on is
specified and the EE date is within the pay period.
- The maximum amount of hours to
transfer is determined by comparing the EE current available hours for
the benefit to the Max Transfer Amount defined on the accrual screen or
the Max C/O amount in the accrual schedule if the Use C/O Max is checked
on the accrual screen. The lesser value of the EE available hours and
maximum amount determined from the accrual screen is used.
- The available balance on the
EE benefit that transferred hours is then updated by subtracting the transferred
hours and determining if the remaining available balance exceeds the Max
Remaining Balance on the accrual screen. If so, then the available amount
is reduced to the Max Remaining Balance on the accrual screen.
- Benefit transfer records will
be created by the accrual program if they do not previously exist.
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Step 5
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Accrual period Reset Hours are then processed. (See
the following points.)
- The reset is performed when the
New Year Period is defined on the pay calendar and Reset Hours Year End
is checked on the accrual screen; or when Reset Date on is specified and
the date defined is within the pay period; or when Anniv. Reset on is
specified and the EE date is within the pay period.
- If a C/O Max is defined on the
accrual schedule of the accrual screen then the lesser of the EE existing
available hours and C/O Max amount will be written to the EE benefit record
available hours. Otherwise, the EE available hours amount is updated with
zero.
- Regardless, the EE benefit record
Total Hours Accrued is updated with zero so accruals can begin for the
new period.
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Step 6
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Current employee benefit accruals are then processed.
(See the following points.)
- When Pay Period selected on accrual
screen; or
- When Monthly selected and New
Month Period is checked on accrual screen and the pay calendar record
New Month, New Quarter, or New Year is selected; or
- When Monthly selected and Process
Hours Accrual is checked on accrual screen and the pay calendar record
Process Hours Accruals is selected (this method may require manual updating
of the pay calendar records Process Hours Accruals indicator for correct
accrual processing frequency); or
- When Quarterly selected and New
Quarter Period is checked on accrual screen and the pay calendar record
New Quarter Period is
selected; or
- When Quarterly selected and Process
Hours Accrual is checked on accrual screen and the pay calendar record
Process Hours Accruals is selected (this method may require manual updating
of the pay calendar records Process Hours Accruals indicator for correct
accrual processing frequency); or
- When Annual selected and Year
End Period is checked on accrual screen and the pay calendar record New
Year Period is selected; or
- When Annual selected and Process
Hours Accrual is checked on accrual screen and the pay calendar record
Process Hours Accruals is selected (this method may require manual updating
of the pay calendar records Process Hours Accruals indicator for correct
accrual processing frequency); or
- When Anniv Annual on is specified
and the EE date is within the pay period.
- The current accrual amount is
determined based on employee months of service (subtract the pay period
end date from the EE date defined in the accrual screen Accr Begin Date).
The employee benefit record Current Hours Accrued, Total Hours Accrued,
and Available Hours are all updated by this process.
- The Use Hours Paid should only
be defined for hours accruals to be processed every pay period because
the total hours worked is determined for the payroll - where the Benefit
Eligible indicator is checked on the Earnings Val screen. When the employee
works less than the minimum hours defined on the accrual screen then no
accrual is processed. If the employee works hours between the minimum
and maximum hours defined then the accrual is prorated. If the employee
works the maximum or greater hours then the full accrual is given.
- The Only EEs Paid indicator will
accrue hours only for employees paid in the payroll (i.e. They have time
records defined for the payroll).
- All Pay Group EEs will accrue
for all employees within the payroll group regardless if time records
for the payroll exist or not.
- Please note that the employee
cannot accrue more hours than defined for the accrual policy. This means
the employee benefit Total Hours Accrued amount is verified with the hours
screen Total Max amount and adjusted if necessary.
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Step 7
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C/O Max is the available Max Amt processing. If this
box is checked on the accrual screen then at no time can the employees
available balance exceed the C/O Max amount defined on the accrual screen.
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Step 8
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The associated employee earning code record Begin Date
is updated based on the accrual screen Eligible for Use in period. This
is done by adding the days or months defined to the employee benefit record
Effective Date value and written to the employee earning record.
In addition, the associated employee earning code record
Available Hours amount is updated from the employee benefit record available
balance.
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Step 9
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Update earning End Date with the most current associated
employee benefit record to keep benefit and earning end processing dates
in sync. This means if the employee has multiple VACATION benefit records
and some of them have Termination Dates defined, only the most recent
one (i.e. Most recent Effective Date defined) will be used for determining
the end date for the earning record.
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Processing is completed.
For PTO benefit plans, payroll processing calculates current
accruals, pays employees for PTO hours charged, and updates accrual amounts
on Employee Benefits Detail records
(including Current Hours Accrued and
Total Hours Accrued) and on associated
Earnings Detail records.
Final payroll posting updates accruals. On the Benefits
Detail, Max Accrual Hours
and Max C/O Hours populate based on the hours-accrual
policy. On the Employee Earnings
Detail screen, the system updates the Available
Hours, along with the Current,
Month, Quarter, and Year to Date Processed Earnings and Hours, for the Earning
Code, each time a Payroll goes through final processing and posting occurs. If no related Earnings records have
been created, the system automatically generates them when the Employee
has the benefit assigned on an Employee Benefits Detail record. When an
Earnings Code paid to an employee has an Attendance Code, final payroll
posting creates an Employee (Absence)
Attendance Detail record for the employee's time-off.