Accrual policies

Accrual policies, which contain accrual codes, grants, and takings, define how and when accrual balances are credited and debited. Accrual policies also define preset amounts and predefined intervals for adjusting accrual balances or codes.

For Example: An accrual policy Defines how and when balances for accrual codes are credited and debited. can specify when to credit a vacation balance by 10 hours or credit a sick balance by 3 days. These preset amounts can be automatically increased or decreased at specific milestones. For example, on the person's fifth-year anniversary, the preset amount can increase to 20 hours each month.

If your site is not licensed for Accruals, you cannot add calculated features to an existing accrual policy or profile. Also, you cannot use them to create new ones. If you are authorized for basic accruals only, you cannot add any of the calculated building blocks, such as fixed grants, carryover limits, date patterns, and recurring probationary periods.

Accrual policy versions

You can create multiple versions of an accrual policy using effective dating. All attributes of an accrual policy can be versioned except for the policy name. Use the Version Effective Dates fields to create accrual policy versions.

Create, edit, or duplicate accrual policies

From the Main Menu, select Administration > Application Setup > Accruals > Accrual Policies.

Note: When making changes to an existing accrual policy, be mindful of the effective date. Changes can create historical corrections Edits that occur after timecards are approved and signed-off. if they are made in a signed-off pay period. If needed, create a new version of the policy with an effective date that occurs in an unsigned off pay period.

When you create, edit or duplicate accrual policies, complete the following fields:

  • Policy Name — The name of the accrual policy. Do not duplicate names for the same type of policy.
  • Version Effective Dates —
    • To create a new version of the accrual policy, select Create New Version Effective. Enter the effective date, or select a date using the calendar.
    • To update an existing version, select the version from the Version Effective Dates list and select Update this version.
    • To delete an accrual policy version, select the version from the Version Effective Dates list and click Delete.
  • Probation Period — The time period when time or money accrues but cannot be taken.
  • Accrual Code — Select an accrual code in which time or money is debited and credited.
  • Accrual for Overflow — An accrual code that holds accrual amounts that are lost when carryover and earning limits adjust accrual balances.
  • If you chose an overflow accrual code for the accrual rule, the time or money limited by the carryover limit or limits is moved into the overflow code.
  • Length of Service Reference — A reference date that specifies when milestones occur and when preset amounts change for grants and limits.
  • Select from a list of date patterns. For example, an annual date pattern can be associated with anniversary dates or hire dates. If employees earn 10 vacation hours per month until their fifth anniversary, then they begin to earn 15 vacation hours per month, an annual date pattern can be associated with milestones 0 and 5. At milestone 0, an employee earns 10 hours per month. At milestone 5, which represents the fifth year, the employee earns 15 hours per month.
  • Adjust balance on FTE change — Select this option to include any edits made to an employee’s Full Time Equivalency status when the system processes FTE balance and restorations.

Grants define how and when an accrual balance is credited. A fixed grant defines periodic accrual increases in preset amounts. An earned grant uses one or more earning pay codes as the basis for calculating the amount to credit an accrual balance.

  • Grant — Select a grant for the accrual policy.
  • Length of Service — The length of service required before accruals begin.
  • Amount — The amount accrued by this grant.
  • Expires To Accrual — The accrual to which any remaining balances are transferred on the specified expiration date. Transfers are made on all milestones attached to this accrual.

Limits are the maximum or minimum amounts that control how an accrued balance grows. Carryover limits ensure that the accrual balance does not carry over from one time interval to another by more than a specific amount. Earning limits determine the amount of an accrual balance or how the amount of an accrual balance can grow. Taking limits control the amount of an accrual balance that can be taken at one time.

  • Limit — The name of the limit.
  • Type — The type of the limit you selected. System-populated.
  • Length of service — The length of service required before this limit takes effect.
  • Amount — The amount to which the accrual balance is limited.

Takings are an amount of time or money that employees can use, based on their accrual balances.

  • Select Pay Codes — Select the deducting pay codes that are used for unworked time, such as Vacation. When time is charged to one or more of these pay codes, the system debits the accrual balance for the accrual code.
  • You cannot remove a paycode A category of time or money that employees earn, for example, Regular Hours, Bonus, or Sick. from the Selected list if the paycode is used in a Cascading Profile or a Leave Type.
  • Payout Pay Code — Select the payout paycode for the accrual policy. The list is populated from the Selected list. The <Default> option uses the existing payout behavior.
  • Adjustment to Accrual Balance — Appears only if the accruals type is Days. Select:
    • Fixed number of hours — The scheduled amount is converted into days using the hours per day setting. The number of hours for a day is specified in the Accrual Code editor.
    • Scheduled hours for the day — The net scheduled amount is treated as an accrual day on a day when an accrual taking occurs.
  • For example, assume an 8-hour accrual day and a 7-hour scheduled shift is configured. With Fixed number of hours, the scheduled amount of 7 hours is converted into accrual days, and 7/8 of an accrual day is deducted from the employees accrual balance. Scheduled hours for the day deducts one accrual day from the employee’s balance, regardless of the schedule length.
  • Minimum Taking — The smallest amount that is allowed for an accrual transaction.
  • For example, if you specify a value of 4 for an accrual code that stores hours, an error occurs for a paycode edit of 2 hours because that amount falls below the minimum value of 4 hours.
  • If you perform a move transaction from this accrual code, it must meet any specified minimum.

    Example: If the minimum taking is 2 hours, and you attempt to move 2 hours from this accrual to another using a paycode move, the resulting amount is -2 hours. Because -2 is less than the 2-hour minimum, the transaction fails.

  • Taking Increment — Ensures that paycode edits occur in even multiples of a specified amount.
  • For example, if you specify a value of 2, an error occurs for a paycode edit of 10.5 hours because 10.5 is not an even multiple of 2.
  • For Day type accrual codes, enter the portion of a day for the required increment as a decimal value. The decimal value you enter must round Rounding is a way to simplify payroll accounting and reporting, and to enforce shift start and end times. Punch rounds divide hours into equal segments of an hour. to a whole minute, or you cannot enter a qualifying increment. For example, if a day is considered to be 7 hours and 45 minutes, the required increment cannot be .5, because this rounds to 7 hours, 22.5 minutes instead of a whole minute. This specific use case can be accomplished by adjusting the size of the day to fit the increment selected, or 7 hours and 44 minutes.
  • Restore Taking — Specify when a taking is restored. Select:
    • <None> — Specifies that Taking Restorations are not used.
    • All Takings From Start — The first taking (or edit) against the accrual policy starts a timer. The time taken with this taking is restored when the timer expires (at the end of the time specified in Amount). In addition, any other takings between the first and the timer expiration are restored at the same time.
    • Each Taking — Each individual edit (or taking), which draws from the accrual policy, is restored when the time specified in Amount elapses.
  • Amount — Specify how often to restore the taking by entering a number in the text box and a unit of time in the drop-down list.
  • When Weeks is selected as the unit of time, you can select the reference day for when the restore occurs (Prior Sunday, Prior Monday, and so on).
  • For example, consider the following settings:
    • Restore Taking: All Takings From Start
    • Amount: 52 weeks
    • Reference day: Prior Sunday
  • If the taking date is December 21, 2021 (Tuesday) then the restore day is December 18, 2022 (Sunday).

    • Note: When None is selected, the reference day is the day of week for the original transaction. For example, in the above scenario, if None was selected as the reference day, then the restore day would be December 20, 2022 (Tuesday, the same day of week as the original transaction).

  • Maximum Taking Limit — Specify the greatest amount that is allowed for an accrual transaction.
  • Warning Amount — The amount at which the system sends a warning that the maximum taking limit is met or has been exceeded. This amount must be less than the disallow amount and can be zero or a negative amount.
  • Disallow Amount — The amount at which the system disallows the paycode edit that exceeds the taking limit. The disallow amount must be more than the warning amount. If no warning amount is set, the value can be zero.

Overdrafts occur when a paycode edit results in time or money that exceeds the accrued amount. You can specify overdraft levels that trigger warnings or disallow paycode edits.

  • Past or Present Overdrafts — Occurs when a paycode edit results in time or money that exceeds the accrued amount. You can specify overdraft levels that trigger warnings or disallow paycode edits. Select:
    • Warning Overdraft Amount — An overdraft amount that triggers the system to send a warning. A manager can override the warning and make the paycode edit. The Hours text box contains the amount, which is the value that triggers the warning. It is necessary for the warning amount to be less than the disallow amount, and it can be zero or a negative amount.
    • Disallow Overdraft Amount — A limit at which the system disallows the paycode edit that would cause an overdraft. It is necessary for the disallow amount to be more than the warning amount. If no warning amount is set, the value can be zero.
    • Treat disallowed amounts as warnings in signed off periods — This option causes a warning to display in the timecard when you exceed the number of hours specified and click Save. This warning can be dismissed and you can continue with the save.
    • If users click Yes in the warning window, they will be able to continue with the save without restrictions.
  • Future Overdrafts — Specify future overdrafts:
    • Warning Overdraft Amount — An overdraft amount that triggers the system to send a warning. A manager can override the warning and make the paycode edit. The entry option contains the amount, which is the value that triggers for the warning. It is necessary for the warning amount to be less than the disallow amount, and it can be zero or a negative amount.
    • Disallow Overdraft Amount — A limit at which the system disallows the paycode edit that would cause an overdraft. It is necessary for the disallow amount to be more than the warning amount. If no warning amount is set, the value can be zero.
  • Past Overdraft Balance Effective Date — Specify the effective date:
    • Balance on current date — Specifies that earnings in the past offset an overdraft in the past. For example, an overdraft does not occur if a paycode edit on February 10 results in an overdraft of 4 hours and then 8 hours are earned on February 20.
    • Balance on date taken — Sets a limit at which the system disallows the paycode edit that would cause an overdraft in the past. It is necessary for the disallow amount to be more than the warning amount. If no warning amount is set, the value can be zero.
  • Override Warnings — Specify whether the system should ignore certain override warnings. Select one or both: