Calculation of Time Off Entitlements

Calculation of Time Off Entitlements

Use

The functions for calculating time off entitlements for Quota entitlements per accrual period are used for the automatic accrual of absence quotas.

The R/3 System calculates an employee’s individual time off entitlements and enters them as a deductible quota in the Absence Quotas infotype (2006).

You can base the calculation and the transfer of the accrual entitlement to the Absence Quotas infotype (2006) on a variety of different criteria.

Prerequisites

You define rules for calculating accrual entitlements in Customizing. Choose Personnel Time Management ® Time Data Recording and Administration ® Quotas

Features

Explanation of terms: Base entitlement and base period, accrual entitlement and accrual period, transfer time

Base entitlement	The employee’s total entitlement for a specific period. The base entitlement is a theoretical value that is used as the basis of the calculation.
Base period	The period for which the base entitlement is valid.
Accrual entitlement	The employee’s quota entitlement per accrual period, as calculated in time evaluation. The calculation is based on the base entitlement. A comparison of the base period and the accrual period converts the base period to the accrual period.
Accrual period	Period for which the accrual entitlement is calculated.
Transfer time	Point at which the accrual entitlements determined in time evaluation are transferred to the Absence Quotas infotype (2006). They increase or replace the existing value in the infotype. The transfer time can be defined by the user. If there is not an absence quota of this type for the relevant validity period, the system creates one.

You can define different rules for the accrual of time off credits, according to the hiring date. This allows you to:

Specify more favorable rules for employees who have been with the company longer

Implement new contractual agreements for new employees by extending existing selection rules for absence quota types

In Customizing, you define for each absence quota type and employee grouping a base entitlement to a time off quota (in days or hours) in relation to a specific period (for example, a calendar year). It is determined from the employee-specific working time results, or according to the employee’s master data. If you want to grant the time off entitlement proportionately, the base entitlement serves as a calculation basis for which the proportionate time off entitlement (accrual entitlement) is determined per accrual period.

The R/3 System determines the accrual entitlement by comparing the base period to the accrual period. If the accrual period does not correspond to the base period, the entitlement is calculated for the accrual period.

The base entitlement of 18 days is related to a base period of one year. The accrual period is 1 month. The entitlement per accrual period is 18 (days) / 12 (months) = 1.5 days per month.

In some cases, the accrual periods cannot be divided exactly in the base period. The R/3 System then calculates how often an accrual end date occurs in the base period, and uses this value as a divisor.

The base entitlement can vary according to age or seniority. You can specify different base entitlements for different age or seniority ranges.

Employees with a seniority of 0-4 years are allocated a base entitlement of 20 days of standard annual leave, employees who have been with the company for 5-10 years receive 22 days.

If an employee’s age or seniority changes within an accrual period, this can be taken into account by the system.

You can specify a general base entitlement for all employees in a personnel calculation rule, or you can vary the base entitlement by specifying certain conditions and subrules. This allows you to base the entitlement on other master data or organizational assignments.

Employees with pay scale type 01 have a base entitlement of 2 days, employees with pay scale type 02 have 2.2 days of leave per month.

You can also control the calculation of the accrual entitlement individually in a personnel calculation rule. This allows you to generate absence quotas on the basis of hours worked.

You do not want casual employees to be allocated as much leave as regular employees.
You only want an employee to be entitled to the full base entitlement if he or she has completed a certain number of working hours.
The entitlements can be rounded and reduced. If you grant time off entitlements on the basis of performance, you can define a maximum entitlement so that a certain value cannot be exceeded.
You can enter any surplus entitlement and differences resulting from a reduction in special absence quotas. This allows you to document reduced times or accumulate them in entitlements to unpaid absences, for example.
If you implement time evaluation, you can define the transfer time for the accrual entitlements in the Absence Quotas (2006) infotype. This enables you to make the time off entitlements available as a deductible quota as of a certain time, for example, not until the following payroll period or only as of the end of the probationary period (Date Specifications infotype (0041)). You can define transfer packages to prevent very small quota values being transferred.

You do not want the quota entitlement to be transferred to the Absence Quotas infotype (2006) until it amounts to 12 hours.

Activities

If you want to determine accrual entitlements on the basis of hours worked, you must supply the necessary information from time evaluation. The R/3 System calculates the accrual entitlement according to an employee’s hours worked as follows:

The R/3 System uses the base entitlement to determine a theoretical accrual entitlement which the employee would be granted if he or she completed 100% of the planned hours. It then multiplies this entitlement by the current value of the day or period balance that you specified in the Set generation rules for quota selection step in Customizing.

The value of the day or period balance is determined using a personnel calculation rule. In it, the actual hours worked are divided by the planned hours in the personal work schedule. The value determined is placed in the time type.

An employee has a leave entitlement (= base entitlement) of 24 days for each year (base period). The leave entitlement is accrued monthly and placed in the Absence Quotas infotype (2006).

If the employee has completes the planned hours for each month, he or she receives an accrual entitlement of 2 days per month. The actual accrual entitlement is determined by multiplying the 2 days by the value in time type 9999.

Time type 9999 is determined from:	80 hours of attendance ____________________ 160 hours of planned time according to personal work schedule	Value determined in time type 9999 = 0.5
2 days of theoretical accrual entitlement if planned hours are completed	Multiplied by value in time type 9999 = 0.5	Accrual entitlement is 1 day