Title: Accrual Plans - Annually by Hire Date (on first of month)
This solution provides a method for posting accruals annually based on an employee's Hire Date. Note that with this solution, you need to use the first of the month as a substitute for the actual Hire Date. For employees hired under the Service Contract Act (SCA), this may be the Service Date instead of the actual Hire Date.
What's covered in this document:
As in the basic Accrual Plan, you will need to set up a Plan with a Schedule and populate the employee's Hire Date within the People Profile. To avoid a prorated accrual amount, set the Hire Date on the profile to the first of the month. You can capture the actual hire date in a User-Defined Field (UDF).
Setting up the Accrual Plan
Employees accrue leave on a periodic basis, based on the company's leave policy. In the initial setup, the Period Type determines how often the system will post accruals. The product does not currently support posting accruals annually based on an employee's Hire Date; a workaround is to use a "Monthly" Period Type to capture all employees who reach a certain threshold in any given month. The Schedule is set up to isolate those thresholds and prevent accruals in between.
Step 1 - Create the Plan
As mentioned above, select the "Monthly" Period Type. The Begin Date should be as close to your go-live date as possible so you do not have to post "catch-up" accruals. You may want to leave the POSTING OPTIONS Type as Manual Posting (No Automated Posting) to verify the first post is correct. Otherwise, the preferred option may be Automatic Posting at Beginning of Period to accrue the leave immediately. This would also apply any caps to previous accruals, as discussed below.
Step 2 - Establish the Schedule
The schedule will be more extensive than other accrual plans because it is designed to isolate the 12th, 24th, 36th, etc. months of service to create the annual effect.
- The first schedule line will not include any ACCRUAL HOURS. The employee should be added with a prorated beginning balance of hours.
- The second line will mark the first annual accrual, when the employee reaches the 12th month of employment. Enter 12 in the MONTHS OF SERVICE field and set the ACCRUAL HOURS to the total accrual for the year.
- The third line prevents any other accruals until the employee reaches the 24th month of employment, for the second annual accrual. Enter 13 in the MONTHS OF SERVICE field and set the ACCRUAL HOURS to 0.
- The fourth line is the second annual accrual. Enter 24 in the MONTHS OF SERVICE field and the total hours for two years of service in the ACCRUAL HOURS.
Repeat the pattern above for all potential years.
Step 3 - Capping the Hours
Depending on the company policy, employees may not be able to carry hours over from one year to the next. In this case, the interim periods should have a CAP TYPE of "None" and the annual lines should have a CAP TYPE of "Annually (Hire Date)" and CAP HOURS set to 0.
In the Admin > Properties > Time > General settings, verify the Accrual Hire Date Cap (post first, then cap) property is set to FALSE (not selected). This will cap the hours first, and then post the new accrual. When looking at the Accrual Details report, the net activity will show (i.e., if the cap is set to 0, the annual accrual is 120 hours, and the employee has 4 hours remaining, then 116 hours will show in the accrual).