Reporting Leave Liability and Absence History

This section provides an overview of leave liability reporting.

  • Calculate annual leave for accrual in days.

  • Calculate annual leave liability for reversal on termination.

  • Calculate salary accrual earnings.

  • Calculate bonus accrual earnings.

  • Calculate noncontractual bonus earnings.

  • Reverse leave liability when the cost center changes.

Page Name

Definition Name

Usage

Leave Liability MYS Page

GPMY_RC_LVELIAB

Specify the population of employees for whom to report leave liability. You can specify an as of date, and you can report by element category.

Leave History MYS Page

GPMY_RC_ABS_HIST

Specify the population of employees about whom to report the history. You can specify an absence type and the period that is to be reported. You can set up to three sort orders.

The data that the report process extracts for leave liability reporting can be transferred to the general ledger through the GLI.

The reports and the interface depend on data that is created by using Global Payroll rules.

Note: In this section, the word reported means printed on a report and available for transfer to GLI.

Liability and absence history are calculated and reported for the administration of employee absences and leave. They are used to identify trends in absences and for costing purposes.

Liability is reported for annual leave that is accrued in days. The values are calculated as the earning LIAB ANN DYS. This earning does not contribute to the accumulator MYS GROSS.

When you run the liability report, the parameters include the element category. The earning LIAB ANN DYS is category ANN. The category value is assigned as a variable that is entered as a supporting element override for each earning.

The calculating rule for LIAB ANN DYS is unit rate, where unit is the formula GLI FM LIAB DAYS and rate is the formula LVE FM PAYRATE.

Leave liabilities are calculated at the end of each month for active employees, or when an employee is terminated. The generation control element GLI GC GENGLI verifies this by using the following formulas:

  • CMN FM LSTSEGMTH

    This formula verifies that it is the last segment of the last pay for the month, and the employee is active.

  • CMN FM TERMIN

    This formula determines whether the employee is terminated in this pay.

The element LIAB ANN DYS contributes to the accumulator LIAB ANN DYS_YTDA.

The calculation rule for LIAB TER DYS is amount, where amount equals the earning element LIAB ANN DYS.

The generation control element CMN GC TERMIN checks only for terminated employees by using formula CMN FM TERMIN. The formula CMN FM TERMIN determines whether the employee is currently terminated (that is, the termination date is in the current segment) or the employee was terminated in the past and the termination is entered in the current period. The termination leave liabilities are calculated only when an employee is terminated so that they reverse any remaining liabilities that are in the general ledger. No proration applies.

The element LIAB TER DYS contributes to the accumulator LIAB TER DYS_YTDA.

The calculation rule for SAL ACCRUAL is Base × Percentage, where base is the accumulator GLI AC RECPYMTS and percentage is the variable GLI VR PCTSALACR.

The variable GLI VR PCTSALACR enables you to enter the percentage that is to be accrued. You add the variable as a calendar-supporting element override on the last calendar of the month, so the variable's override levels should be set to pay calendar. The value of the variable varies according to the gap between the end of the pay period and the end of the financial period. You enter the value on the Pay Calendar SOVR's page because it depends on the number of days between the end of the pay period and the end of the month. Consequently, the override level for the pay calendar should be selected.

Accruals need to be calculated only in the last segment of each month and only for active employees. The generation control GLI GC SALACCR therefore includes the formula GLI FM GENSALACR, which returns a value that determines whether to pay the earning SAL ACCRUAL.

The earning SAL ACCRUAL contributes to the accumulator SAL ACCRUAL_YTDA.

The calculating rule for CT BON ACCR is amount, where amount equals the formula GLI FM CTBONACC.

You use formula GLI FM CTBONACC to determine the amount that each period accrues for contractual bonuses. The formula GLI FM BONUSACC determines whether a bonus is accrued. The bracket GLI BR CTBONPCT determines the percentage of salary to accrue.

The calculation rule for NCT BON ACCR is amount, where amount equals the formula GLI FM NCTBONACC.

You use the formula GLI FM NCTBONACC to determine the amount that each period should accrue for noncontractual bonuses. The formula GLI FM BONUSACC determines whether a bonus is accrued. The bracket GLI BR NCTBONPCT determines the percentage of salary to accrue.

The Leave Entitlements Application Engine process determines whether a change of ChartField exists for each employee. The ChartFields represent cost centers such as departments and pay groups. When the process detects a change, it reverses the liability from the center that stores the processed liability, and it sends the full amount of the new, unprocessed liability (not the difference) to the new cost center.