Leave Provision Calculations
This process provides an overview of how leave provisions are calculated for long service leave (LSL), annual leave and other leave types.
To configure the calculations, you must perform the activities in theLeave Provisions section of the Implementation Guide for Payroll Australia.
Check yourleave provision calculation factors in the Check constants for leave provisions section of the Implementation Guide for Payroll Australia.
To configure leave provision calculations for long service leave, you:
To calculate the years of service, the system compares the hiring date in the Events infotype (0000) with the entry into group date in the Contract Elements infotype (0016) and uses the earliest of the two dates.
To configure annual leave and other accruing leave types, you:
Use escalation rate ESC11, because escalation rates ESC01 to ESC10 are LSL escalation rates that are based on the employees’ years of service.
To configure non-accruing leave, you:
All the values calculated are factored by any changes in work assignment (for example, changes to cost center).
Two new tables are generated in the payroll results cluster (RQ):
The tables store the details of the leave provision calculations described above and are summarised in the payroll results. The system uses the data to generate leave provision wage types. The wage types are stored in the results table (RT) according to the configuration in the Leave Provisions table (T5QLP) that links leave types to wage types. The wage types hold the total leave provision amount for the related leave types.
The wage types must be assigned a leave provision account to facilitate posting to Accounting.
The amount that is posted on a wage type is the total leave provision amount for an employee and may include negative amounts for leave liabilities posted in previous payroll periods.
For example, at the end of January an employee accrues a total leave provision of $5000. At the end of February, the employee’s total leave provision has accumulated to $6000. The $5000 posted in the previous month is brought forward as a negative value (-$5000) so that only $1000 leave provision is posted for the employee in February.
See also:Leave Provision Calculation Factors