Vacation Handling

Purpose

This component describes the handling of the employee vacations for Payroll Finland, in the SAP system.

Vacation Handling comprises the:

  • Accrual of Vacation Days

    Includes the processes required for computing the vacation days accrued by an employee, and the deduction of the days during which an employee takes a vacation.

  • Deduction of Vacation Days

    You can specify the leave days taken by an employee by selecting the absence type Leave FIN (0100), in the Absences infotype (2001). The system will deduct the leave days starting from the oldest quota records taking into account the quota deduction periods specified in the Absence Quotas (2006) infotype.

    For more information on a special case of deduction, see Deduction of Vacation Quota for Illnesses during Vacation.

  • Vacation Payments

    Includes the processes required for computing the Vacation Payments payable to an employee. Vacation Payments consist of Vacation Pay and Vacation Bonus.

Integration

SAP Time Evaluation

For handling vacation accruals and deductions, Payroll Finland makes use of the standard SAP Time Evaluation, as well as Finland-specific Time Evaluation features.

Features

Employment Type

Depending on their employment contract, employees may be categorized as Full Time Employees or Part Time Employees . Part Time Employees may further be categorized into Group 1 or Group 2 , based on whether they work more than 35 hours or less than 35 hours in a month.

The Employment Type determines the method of vacation accruals. You specify an employee as a part time or full time employee in the Planned Working Time infotype (0007).

Number of vacation days accrued may differ based on the seniority of the employee.

Vacation Year

A Finnish Vacation Year lies between April 01 of one year and March 31 of the following year. In Finland, the employees accrue vacation days in one vacation year, and utilize these accrued vacation days from the next vacation year onwards.

Vacation Days

Typically, vacations are taken in blocks of complete weeks. A week long vacation consists of seven calendar days, six quota deduction days and five vacation days. You maintain the vacation dates in the Absences infotype (2001).

Working Day

Every day in which, an employee works the minimum required number of hours is considered as a working day. Additionally, the system considers every non-working day containing absences as a working day.

Leave Accrual Year and Leave Period

The year in which an employee accrues vacation days is termed as the Accrual Year . The period in which the employee utilizes the vacation days is termed as the Leave Period .

In the standard SAP system, the accrual period lies between April 01, Year 1 and March 31, Year 2. The Leave Period lies between April 01, Year2 and March 31, Year3. You can however, specify the accrual periods using the table view Payroll Periods(V_T549Q), using Period Parameter 43.

Accrual Date

This is the date on which, the system automatically transfers the accrued vacation days to the Absence Quotas infotype (2006), for future deductions in the Leave Periods.

Seniority

The number of vacation days accrued by an employee may depend on their years of service in the organization. By default, Payroll Finland computes 2 days of vacation per month for employees with less than one year of service. For employees with more than one year of service, the system computes 2.5 vacation days per month.

Leave Bank

You have the option of setting aside a fixed number of annual vacation days for use in a future vacation period (years). Using the Time Transfer Specifications infotype (2012) subtype (9000), you can transfer the required number of days or hours from Absence Quota Type 95 to the Absence Quota Type 90.

Reports

The following reports are available for the Finnish Vacation Handling:

Payroll Run for Vacation Payment

For information about payroll runs for vacation payments, see: