Understanding Leave Liability Reporting

The data that the report process extracts for leave liability reporting can be transferred to the GL through the GLI and included in the QSP financials file.

The reports, the interface, and the QSP file depend on data that is created the same way as any other data that's used for reports, the GLI, or the QSP file generation—by the use of Global Payroll rules.

Note:

In this section, unless otherwise stated, the term reported means printed on a report, available for transfer to GLI, and available for inclusion in the QSP file.

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

Note:

Absence history and its associated report are not part of the GLI functionality.

See Global Payroll for Australia Reports: A to Z

Liability is reported for annual leave accrued in hours, annual leave accrued in days, and long service leave accrued in weeks and months. The values are calculated as earnings: LIAB ANN HRS, LIAB ANN DAY, LIAB LSL WKS, LIAB LSLFTM and LIAB LSLPTM. These earnings do not contribute to accumulator AUS GROSS.

When you run the liability report, the parameters include the element category. Earnings LIAB ANN DAY and LIAB ANN HRS are category ANN and LIAB LSL WKS, LIAB LSLFTM and LIAB LSLPTM are category LSL. Entitlement ANN ENTHPH does not currently have a corresponding leave liability earnings created and therefore will not be included in the report. The category value is assigned as a variable LVE VR CATEGORY entered as a supporting element override for each earning.

This section discusses how the following leave liability events are calculated:

  • Annual leave liability for hourly accrual.

  • Annual leave liability for daily accrual.

  • Long service leave liability for weekly accrual.

  • Long service leave liability for monthly accrual.

  • Leave liability reversal when the cost center changes.

Note:

The term pro rata refers to accrued leave that the payee may or may not be entitled to take. Pro rata becomes entitlement on an anniversary, usually of the payee's hire date. Entitlement refers to leave that the payee is entitled to take and that may have once been pro rata leave. This PeopleBook makes this distinction because both entitlement and pro rata are referred to as entitlement in the system.