Vacation Accrual Process

Purpose

This describes the process of accruing Finnish vacation days in the standard SAP system.

The accrual of vacation days takes place when you run the Time Evaluation report (RPTIME00). Vacation accruals take place on a monthly basis. When an employee works for the minimum specified time or hours, within a month, the employee accrues the vacation days for that month.

For example, when a full time employee works for a minimum of 14 days in April, the employee accrues two vacation days for April.

Note Note

Ensure that you run the Time Evaluation report (RPTIME00) for all the days in the payroll period.

End of the note.

Prerequisites

You have performed the necessary configurations for setting up the Quotas and Quota accrual rules. For more information, refer to the IMG under:

Personnel Time Management Time Data Recording and Administration Managing Time Accounts Using Attendance/Absence Quotas Calculating Absence Entitlements Rules for Generating Absence Quotas
Payroll International Basic Settings Payroll Organization Generate Payroll Periods.

Process Flow

The Time Evaluation report (RPTIME00) makes use of the Finland: Subschema for Vacation Handling schema (TFI0) for the accrual of Finnish vacations. This schema is a part of the Time Evaluation for Work Schedule Deviations schema (&MO1). TFI0 determines the number of days or hours worked by an employee and accordingly triggers the generation of the absence quotas.

When processed, the Time Evaluation report (RPTIME00):

Checks for the Employment Type of the employee
As the vacation accrual rules differ based on the employment category, the system determines whether the employee is a full time or a part time employee. You specify an employee as a part time employee in the Planned working time infotype (0007).
Checks whether the employee has worked for the minimum required duration.
- Full Time Employees
  The Finland: Trigger quota generation/ Full or Part Time rule (TFI0) checks whether the employee has worked 14 days in a month. If an employee has worked for the required number of days the system further processes vacation accruals using the Finland: Full Time; Count working days; trigger quota generation rule (TFIF).
- Part Time Employees
  The schema TFI0 checks whether the employee has worked for at least 35 hours in a month. If an employee has worked for the required number of hours the system further processes vacation accruals using the Finland: Part Time; Count working hours; trigger quota generation rule (TFIP).
Checks the duration of employment
The system checks whether the duration of employment has lasted for at least one year within the vacation accrual period. The system checks this information in the following tables views:
- Absence Quota Type Selection (V_T559L)
- Base Entitlement for Absence Quota Generation (V_T559E)
- Payroll Periods (V_T549Q)
  Time evaluation provides information on the number of days or hours that the employee has worked in a given month.
Generates the accrued vacation days on a monthly basis
- Full Time Employees
  - If an employee has worked for at least one year within the vacation accrual period, the system generates 2.5 days of vacation quota, per month for the employee
  - If an employee has worked for less than a year within the vacation accrual period, the system generates two days of vacation quota, per month for the employee
- Part Time Employees
  - If an employee has worked for at least one year within the vacation accrual period, the system generates 2.5 days of vacation quota, per month for the employee
  - If an employee has worked for less than a year within the vacation accrual period, the system generates two days of vacation quota for the employee
    On the Vacation Accrual Date, the system saves the accrued vacation days in the Absence Quotas infotype (2006), under the Absence Quota Type 95 .

Seniority

While computing the accrued vacation days for an employee, the system checks for the seniority of the employee. For employees who are with the company for less than one year, the system computes the seniority based on the Seniority Rule 1 and for the employees with between one to ten years of service, the system computes Seniority based on the Seniority Rule 2.

For employees with less than one year of service, the system computes two vacation days per month. For employees who have between one and ten years of service with the company, the system computes 2.5 days of vacation per month.

You can maintain the seniority principles using the following table views:

Base Entitlement for Absence Quota Generation (V_T559E)
Absence Quota Type Selection (V_T559L)

By, default, the system computes seniority based on the Hiring Date. You can however, specify another date in the Date Specifications infotype (0041).

Maternity/Paternity/Parental Leave

The new law will only concern those family leaves starting 1.4.2016 or after that. This means that on-going family leaves will still accrue vacation like now: All days belonging to 31.3.2016 on-going family leaves will be regarded as working days.

During maternity, paternity or parental leave, employees accrue vacation quota as if they were working. However, quota accrual stops after a maternity, paternity, parental leave or a combination of these exceeds the following limits:

For full time employees, the quota accrual stops when the leave period exceeds the limit specified in the Family Leave Max Days - FullT. (FLMDF) constant.
When the system applies this limit, it only takes days from Monday to Saturday into account. For example, if the limit is 156 days, then it will take 26 weeks of continuous leave (in case there are no public holidays in this period) to reach this limit.
For part time employees, the quota accrual stops when the period exceeds the limit specified in the Family Leave Max Days - PartT. (FLMDP) constant.
Unlike in the case of the limit for full time employees, for this limit, the system takes every calendar day into account.

You can check values of these constants in Customizing view V_T511K in transaction sm30.You can check values of these constants in Customizing view V_T511K in transaction sm30.

Example Example

Assume that the limit for full time employees is 156 days.

A mother, who is a full time employee, takes 105 days of maternity leave and 159 days of parental leave, which add up to 263 days. The 105 days of maternity leave and 51 days of parental leave (total of 156 days) are regarded as working days, therefore the employee accrues quota for them, whilst for the remaining 107 days of parental leave the employee does accrue vacation quota.

The employees will accrue quota again in the month that they return to work and work at least 14 days (full time employees) or 35 hours (part time employees).

End of the example.

Rounding of Vacation

In Finland, vacation days must be taken in blocks of whole days. The vacation accrual may however, take place in units that are not whole days, for example, an employee may accrue 2.5 vacation days in a month.

The system during the computation of absence quota days, rounds the accrued vacation days to the next whole number. The Finland: Subs. VAC, Rounding schema (TFIQ), within the Finland: Subschema for Vacation Handling schema (TFI0) processes the rounding of the vacation days.

Monthly rounding
On a monthly basis, the Finland: Subs. VAC, Rounding schema (TFIQ) stores a rounded value for the accrued vacation days in the FIN 206 FI/CO wage type (MV50). This information is typically required by the FI.
Annual rounding
At the end of the vacation accrual year, the Finland: Subs. VAC, Rounding schema (TFIQ) rounds up the vacation days for the entire year and stores the total absence quota in the Total absence quota/ info wage type (MV05). The payroll uses the value in this wage type to determine vacation payment.

Result

The Time Evaluation report (RPTIME00) stores the accrued absence days in the Total absence quota/ info wage type (MV05), for further processing during the computation of vacation related payments.