Provision Calculations

Each month, after you finalize the payroll process, you can run a second process that calculates provisions for the same payroll period.

To calculate provisions, create a calendar group that is similar to that used for the payroll process. Associate each calendar in the calendar group with run type, KR PROVIS. This run type is associated with the process list PROVISOES, which uses an accumulator with a calculation base that includes monthly salary, as well as other fixed and any variable wages that employees receive as part of their monthly pay. Each provision has its own accumulator to meet the specific legal requirements. To run the process, use the Calculate Absence and Payroll run control page.

Average versions are defined by union code, run type and element. To calculate provisions based on a run type other than KR PROVIS, set the variable FP VR RUN TYPE to the run type that represents the accurate average version. You can set this value at the calendar level or other level, including via other elements.

The system calculates provision amounts on the last segment only.

Note:

The system uses prorated vacation entitlement as the basis for calculating provisions for vacation entitlements.