Vacation Reserves

Path: Payroll Elements

In a configured system, a payroll element of the type Vacation Reserve is used to calculate the vacation reserve. To calculate one or several types of leave, you can create multiple calculation elements or filter them by Time Activity Groups, which can be configured in the Time Tracking module.

Specifics of Adding to Payroll Document and Calculation:

In the Payroll Calculation Types, the Vacation Reserves element is assigned to a category that is used in Always mode. This means that the element will always be calculated in the employee’s payroll document. The amount is informational and is not included in the Total Accrued or Total Deducted. The vacation reserve amount will also not be visible on the employee’s payslip.

The periods of average salary used for reserve calculation are determined using the payroll calculation function AE PERIODS RESERVE. The type of leave for which the reserve is calculated is defined by the Time Activity Group – activities are selected based on assigned codes. Configuration of these activities is set in the Time Tracking module, ensuring consistency and accuracy of calculations.

Unused vacation hours are calculated using the function REST OF VACATION HOURS RESERVE, which is also filtered by the Time Activity Group. During payroll document processing, the system automatically calculates the reserve amount and records it in the Payroll Amount field.

After posting the payroll document, the system generates automatic accounting entries related to the vacation reserve, ensuring full financial compliance and an accurate representation of the company’s obligations toward employees.