Advance Holiday Pay (AHP) 

Purpose

This component enables advance holiday payment for any employee who goes on vacation for a complete period or more in bulk. This is usually, though not exclusively, paid to the weekly employees.

·         AHP includes all payments of salary and allowances, and deductions due to the employee for vacation periods.Only full periods payments are made.

·         AHP is calculated for whole period(s). Part period holiday pay calculation is not possible in this solution.

·         The employee receives only full period’s payments.

·         The employee is paid for vacation period during the period prior to which he or she goes on vacation. Hence, the employee receives no payment during vacation period.

Feature

The periods in consideration during AHP calculation are:

Week 2 (HPPP)

Week 3 (HPVP)

Week 4 (HPVP)

Week 5 (HPRP)

 

·        Holiday Pay Payment Period (HPPP)

The period in which the employee is paid in advance for the holiday. This is the period just before the employee goes on vacation. If an employee is on vacation during week 3 and week 4 of the employment, HPPP is week 2.

·        Holiday Pay Vacation Period (HPVP)

The period in which the employee in on vacation. If an employee is on vacation during week 3 and week 4 of employment, the weeks 3 and 4 are HPVP.

·        Holiday Pay Return Period (HPRP)

The period in which the employee returns back from the holiday. If an employee is on vacation during week 3 and week 4 of employment, week 5 is the HPRP.

Constraints

●      Consecutive Additional Payments infotype (0015) entries for Holiday Pay wage type (/HOL)

It is not possible to make Holiday Pay wage type (/HOL) entries in consecutive periods. For example, if the employee is on vacation during week 3 and week 4, you make the entry during week 2. Later, however, if the employee decides to take vacation for week 5 also, the system calculates AHP incorrectly when you:

¡        Change the entry you made during week 2

¡        Create a new infotype entry during HPPP or HPVP

●      Retroactive entries in Additional Payments infotype (0015) for /HOL wage type

The payroll gives an error when you make Additional Payments infotype (0015) entries for Holiday Pay wage type (/HOL) for past periods.

●      Change of Payroll Area during Vacation Period

The AHP calculation is incorrect or inconsistent if you change the employee’s Payroll Area during the vacation period.

●      Week in hand payments

If you follow the method of payment in which the employee receives current week’s payment in the week that follows, the system calculates the periods incorrectly.

●      Retroactive payroll run during HPVP

The system gives the following error if you perform retroactive payroll run during HPVP: