Before you calculate vacation payments for an employee, set up the vacation payment calculation method in the General settings for vacation calculationform. The form uses the time group to calculate the hours worked using the average-earnings calculation base and the selected vacation calculation method. These settings can be changed for each employee in the Employee average earned calculation methodform.

When an employee is granted basic annual or additional vacation, or other paid leave, you must create and post a vacation resolution. The Vacationsform is used to calculate the vacation payment. You can create the vacation calculation line manually or by using the staff vacation resolution. You can also use the Vacationsform to calculate compensation for an employee's unused vacation, or recalculate interrupted vacations.

The calculation method settings for the vacation calculation line are based on the general vacation calculation settings, except when the calculation method is changed for a specific employee, in which case the settings from the Employee average earned calculation methodform are used. The settings can be redefined for each individual vacation payment calculation. The calculation generates information about the average-earnings calculation, including hours worked and accrued, listed by calculation periods and payment sources. When calculating vacations, the amount across the payment periods is also divided. After the vacation payment calculation line has been added to the payroll, it is processed before the start of the vacation calculation procedure.

1. Click Staff accounting> Calculation procedures> Vacations> Setup> Setupto open the General settings for vacation calculationform.

2. In the Calculation method codefield, enter the average-earnings method code.

3. In the Namefield, enter the average-earnings calculation method name.

4. In the Number of monthfield, select the rate that contains the number of months for the average-earnings calculation to be used in the vacation payment calculation. This number is equal to the number of months preceding the vacation start date; the hours worked and employee's accruals within these months are included in the calculation.

5. In the Calculation of short monthfield, select the calculation method for the hours worked if the employee did not work through the entire calculation period. The options are:

   • Summary- Calculated using the information about the hours worked for the month; the time according to the schedule minus absences.

   • Calendar- Calculated using the daily time sheet and calendar details; the days according to the schedule minus absences.

     Note
     Select Calendarto calculate the number of calendar days in a partial month for the vacation average earnings according to the average monthly number of calendar days (29.4). The rate code is specified in the Average days number in monthfield, in General setting for average earned calculationform.

   • By coefficient- Calculated using the information about the hours worked for the month; the actual time worked considering the conversion factor set up for the employee's calendar and the work week duration.

6. Click the Average earningstab.

7. In the Calculation of full monthfield, select the average vacation salary calculation method if the employee worked the full calculation period. The options are:

   • According to calendar- Number of calendar days in the calculation period.

   • Average value- Average number of days per month.

8. In the Calculation typefield, select how the vacation is calculated, by daysor by hours.

   Note
   For the short-month calendar calculation method, use the by dayscalculation type.

9. In the Durationfield, select a vacation duration calculation method. The options are Work-daysor calendar days.

10. In the According to schedulefield, select the time group that defines the time according to the work schedule.

    Note
    In the Actually workedfield, a previously configured time group that defines the actual hours worked is displayed. This field can be edited when using the summarized and incomplete month calendar calculation method.

11. In the Absences from workfield, select a time group defining an acceptable reason for absence from work.

12. In the On averagefield, select a time group defining the times that were calculated based on the average earnings.

13. In the Base of calculationfield, select the average vacation salary calculation base.

    Note
    The base includes the pay types that are used to calculate the average-earnings amount. If no accruals from previous calculation periods are entered in the Base of calculationfield, the average earnings amount is calculated using the accruals calculated for the average earned for the current period.

14. In the Average earned basefield, select the base of the calculation, based on the average earnings.

15. In the Step-up ratiofield, select the average-earned step-up ratio.

16. In the Bonus basefield, select the calculation base for the bonus calculation that includes the pay types corresponding to any awards made during the period.

17. In the Criteria of bonus accountingfield, select the bonus accounting criteria. The options are Maximal, Minimal, First, or Last.

    Note
    If the quantity of bonuses exceeds the maximum permitted for the average-earnings calculation, a bonus is selected for the period for a single reason, depending on the selected criterion. One-twelfth of the bonus for the year preceding the event is included in every month entered in the average-earnings calculation.

18. Select the Proportional calculationcheck box to include the bonuses in the average-earned calculation in proportion to the hours worked.

19. In the Non decreased number of daysfield, select the rate that determines the number of vacation days per year that are not excluded from the seniority calculation.

    Note
    For vacations excluded from the seniority calculation, the number of days that exceed the entered quantity will be excluded.

20. Click the Generaltab.

21. In the Sequence for additional payment calculationfield, select a sequence code for any additional vacation payment.

    Note
    The additional pay is calculated after calculating the basic vacation.

22. In the Workweek durationfield, enter the duration of the work week in hours.

23. Press CTRL+S or close the form.