Past Vacation Quotas

 

Payroll Finland computes the vacation days for hourly workers using frozen averages that are valid for the year in which the vacation days were accrued.

An employee may choose to partially utilize the accrued vacation days in the current vacation year and use the remaining in the future vacation years, for example, an employee takes ten vacation days in 2002 instead of the available 30 vacation days. In 2003, the employee takes 30 vacation days, of which, 20 days are from the past vacation year.

In this case, the Payroll Finland deducts 20 days from the past year and 10 days from the current vacation year. The standard payroll however, computes the 30 vacation days using the frozen average rules valid for the accrual year 2002. It does this instead of computing 20 days using frozen averages of the accrual year 2001 and the remaining 10 using the frozen averages of the accrual year 2002.

This component describes the functionality in Payroll Finland for computing past vacation days, using their appropriate frozen averages.

Features

Quota Types for past Vacation Payments

Instead of the standard absence Quota Type 95 for Vacation Pay and Quota Type 96 for Vacation Bonus, there are separate Quota Types to maintain past Vacation Quotas and Vacation Bonus . They have the naming convention 5x and 6x, where x represents the number of years before the current vacation year.

Example Example

  • 50 - Leave Quota Hourly instead of Quota Type 95

  • 51 - Past Leave Quota - 1

  • 52 - Past Leave Quota - 2

  • 53 - Past Leave Quota - 3

  • 60 - Vacation Bonus Hourly instead of 96

  • 61 - Past Vacation Bonus Quota 1

  • 62 - Past Vacation Bonus Quota 2

End of the example.

Note Note

You can maintain past vacation quotas for a maximum of 5 years.

End of the note.
Frozen Averages wage types

There are individual wage types for computing the frozen averages for the past vacation years:

  • Annual Vacation Average for the current vacation year (/2A0)

  • Annual Vacation Average for the year 1 (/2A1)

  • Annual Vacation Average for the year 2 (/2A2)

  • Annual Vacation Average for the year 3 (/2A3)

  • Annual Vacation Average for the year 4 (/2A4)

  • Annual Vacation Average for the year 5 (/2A5)

  • Standard Annual Vacation Average (/2AA)

Cascading of Vacation Quota Days

At the end of the current vacation year, the system needs to delete Past Vacation Quotas that are more than five years old, and shift Vacation Quotas less than five years old to their next Quota Type . For example, the system will shift Vacation Quota saved as Quota Type 51 in the current Vacation Year , to Quota Type 52 for the next vacation year.

In the standard Time Management schema (&M01), the Cascade Vacation Quotas Finland rule (TFCQ) cascades these Past Vacation Quotas into their appropriate absence Quota Types . This rule:

  • Deletes any current 5 year old quotas in Quota Type 55 and Quota Type 65

  • Copies any current 4 year old quota from 54 and 64 into 55 and 65. It then deletes the Quota Types 54 and 64.

  • Copies any current 3 year old quota from 53 and 63 into 54 and 64.

The rule performs this process for all the Quota Types in a descending manner until it reaches the quota type 50 and 60, in which the system maintains the absence quotas for the current vacation year.

Note Note

The system processes this cascading of past vacation quotas only at the end of the Finnish Vacation year.

End of the note.

You can manually correct these vacation quotas using the table view Employee Time Transfer Type (V_T555P).

Cascading of Frozen Average Wage Types

Similar to the cascading of the past vacation quotas, the Frozen Average Wage Types also need to be cascaded to their next quota type at the end of a vacation year.

In the Payroll accounting schema for Finnish payroll program (HFICALC0) schema (FI00), the Cascade frozen averages Finland schema (FICW) contains the following rules:

  • Prepare for cascading frozen average wage types /2A* (FICP)

  • Cascade frozen average wage types /2A* (FICW)

These rules cascade the Frozen Average wage types to their corresponding subsequent wage types, in the following manner:

  • Initially refresh any frozen average wage type /2A

  • Copy the wage type /2A4 to wage type /2A5, and wage type /2A3 to /2A4

The rules cascade these Frozen Average wage types in a descending fashion till they reach the value of the /2AA wage type.

They then copy the wage types /2AA to /2A1, valid for the last vacation year. The current vacation year will have a new frozen averages wage type /2AA.

In the standard system, the cascading takes place at the beginning of the new vacation year.

You can maintain the period in which it takes place in the table view Payroll Periods with additional attributes (T7FI549Q). The schema processes the frozen averages only if the data in this table indicates that this is the period for calculating new annual frozen averages.

Note Note

The annual frozen averages are then made available in the CRT with their processing class set to T. The table view Cumulation of Wage Types (T54C3) stores these wage types with the type U , to ensure their availability from one calendar year to another.

End of the note.
Infotypes for processing Frozen Averages

  • Absences Quota infotype (2006)

    Using this infotype, you can check whether an employee has any past quotas.

  • Absences infotype (2001), subtype (0130)

    Using this infotype, you can create absence records for the past vacation quotas

  • Time Quota Compensation infotype (416)

The creation of a record in the Absences infotype (2001) subtype (0130) triggers the creation of records in Time Quota Compensation infotype (IT416) through a dynamic action.

More Information

Vacation Handling

Vacation Accrual – Process

Vacation Payments - Process