Calculating Leave Liability
The amount of leave an employee is owed needs to be costed as a liability in the general ledger. For leave liability reporting, we have set up earnings that store the monetary value of each employee's leave entitlement. The earnings are not paid as earnings because they do not contribute to SGP GROSS. This is made clearer by having them in a section of their own after the other earning sections.
Because the GLI flat file only requires the difference between the liability for the last pay period and the current pay period, this is what the Application Engine (AE) leave liability process calculates and passes to GP_GL_DATA.
If an employee has terminated, the stored value of his processed liability has to be reversed out from the GL, since it is no longer a liability.
Reversing Leave Liability on Termination
LIAB TER DYS is the leave liability earning used for reversing the liability on termination.
This earning element uses an Amount calculation rule where the amount is derived from the LIAB ANN DYS earning. Generation control CMN GC TERM STAT checks for terminated employees only using formula CMN FM TERM STAT. Formula CMN FM TERM STAT checks whether the employee is currently terminating (their termination date is in this segment, or in the past and was entered in the current period). The termination leave liabilities are to be calculated only when an employee terminates, so that they reverse any remaining liabilities in the GL.
LIAB TER DYS contributes to the LIAB TER DYS_FPTDA accumulator.
If an employee is terminated, the leave balance liability earning value becomes the termination liability earning for reversal.