This document outlines the best practice for configuring leave accruals for those Companies with vacation policies that allow for their employees to carry over vacation from one year into the next.
What’s covered in this document:
- Best Practice if the Company allows for vacation time to carry over, but does not expire.
- Best Practice if the Company allows for vacation time to carry over, but expires as of a specified date.
Best Practice if the Company allows for vacation time to carry over, but does not expire
In the instance that a Company allows for vacation time to carry over into the next year, but does not restrain those hours by any dates, then the CAP TYPE and CAP HOURS features should be used.
Let's use MYCO as a test case. MYCO is a Company that accrues vacation annually on Jan 1 via their Annual Vacation Accrual Plan. This plan allows their employees to roll over any unused vacation hours into the following year, up to a maximum (or a cap) of 40 hours. These 40 hours would then be added to their normal annual vacation accrual amounts and would be free to use either throughout the following year or up until a certain expiration date in that year.
In this instance, Unanet can manage the leave balances by applying a cap when setting up the accrual plan.
During the accrual post process for the Jan 1 vacation accrual, Unanet will determine the amount of remaining vacation hours from the prior year, then apply the cap of 40 hours, as specified, and will then create an assignment for the appropriate amount of vacation hours in the current year (equal to the carryover hours plus the standard annual accrued hours).
Best Practice if the Company allows for vacation time to carry over, but expires as of a specified date
In the instance that a Company allows for vacation time to carry over into the next year, but requires that those hours be used by a certain date, then the "Carryover" Accrual Plan should be used in conjunction with the normal Vacation Accrual Plan.
Let's use MYCO again, except now, we assume that the 40 hours carried over must be used by March 31st of the following year. In this instance, Unanet can manage the leave balances by using a "Carryover" Accrual Plan, as outlined below.
Two Accrual Plans will need to be setup.
- The Standard Annual Vacation Accrual Plan (same as above, but with No Cap Enforcement).
- The Carryover Accrual Plan (check the "Carryover Type" box).
Each Accrual plan will need its own separate task or project.
You'll remember that the Accrual post process creates the assignment for those people associated with that plan. So, when using the Carryover Accrual Plan, a separate task or project must be created for both the standard accrual plan and the carryover plan in order to create the assignments. For our example purposes, we are using two separate projects.
Perform the Carryover function
In our example, at the end of the year, the person has 45 hours of unused vacation that was assigned to using the accrual posting process. We wish to transfer the assignment of these remaining hours to the VACATION-Carryover accrual plan.
Under Admin > Accruals > Carryover, we can perform the carryover.
In our example, we are transferring remaining hours from the Standard Annual Vacation accrual plan at year end to the VACATION-Carryover accrual plan. Note in the screenshot below the options to choose an hours cap and to set the begin and end dates for the carryover assignment.
When the Search tab is completed, click on the List tab to review and approve the selections prior to clicking Transfer.
There is an option to deselect specific individuals at this point, if needed.
Be certain to review the specifics on this tab fully before continuing, as it is difficult to undo a transfer of carryover hours.
Check the Assignments Created
Once the transfer is made, you will note that the assignment of the 45 hours in the PTO project is no longer available to Anne Curry and the new date bound assignment of 40 hours in the VACATION-Carryover project now exists.
SPECIAL NOTE: Only those assignments created via the accrual posting process will be picked up in the carryover process. Manually created assignments will not be included in the carryover process.