Event Processing for Front-loaded Accrual Plans

Front-loaded accrual plans post an accrual only in the first accrual period of the plan year. But now, you can associate HCM Events with a front-loaded accrual plan to automatically recalculate accruals whenever there’s an HR assignment change. 

When the HCM Event is processed, the system automatically performs these steps: 

  1. Calculate a pro-rated accrual from the plan year start date to one day before the HCM Event effective date using the worker's assignment attributes effective on the plan year start date. 

  1. Calculate a pro-rated accrual from the HCM Event effective date to the plan year end date using the worker's assignment attributes effective as of the HCM Event effective date. 

  1. Add the two pro-rated accruals together and subtract the accrual amount posting on the 1st day of the accrual year to derive an accrual adjustment amount. 

  1. Post an adjustment effective on the HCM Event effective date. 

Here’s an example. Let’s assume the following accrual matrix is configured for a front-loaded accrual plan: 

Priority 

Condition 

Accrual in hours 

0 

Grade <= 3 

120 

20 

Grade >= 4 

160 

The worker’s grade changes from 3 to 4 on May 1. Here’s how the accrual is calculated: 

  1. 120 * (120/365) = 39.45 (worker is in Grade 3 for 120 days of the year) 

  1. 160 * (245/365) = 107.40 (worker is in Grade 4 for 245 days of the year) 

  1. (39.45 + 107.40) - 120 = 26.85 

A positive balance adjustment is posted with an effective date of May 1 for 26.85 hours.

Use HCM events to recalculate accruals automatically for front-loaded accrual plans whenever there's an HR assignment change.

Steps to enable and configure

You don't need to do anything to enable this feature.

Key resources

Create Event Processing Rules to Reprocess Absences