Accrued Leave Balance Report

Description

An Accrued Leave Balance report, which was previously available in the Leave module only, is now also available in the Payroll module so that payroll staff can report on leave that has been accrued in specific pay periods or pay batches. The Accrued Leave Balance report can be run in the Payroll module as follows:

as a historic report from Reports > Pay Reports screen - this allows reporting on leave accruals that occurred across one or more pay periods or closed pay batches
as a pay batch report during the processing of a pay batch (from the Banked Leave Accruals pay batch stage onward) - this allows reporting on leave accruals that have occurred in the current pay batch.

Note: If the report is run as a pay batch report (i.e. during the processing of a pay batch), it is important to remember that at the Banked Leave Accruals stage the system accrues leave types that have an apply to type of Hours with Wage only. All other leave types do not accrue until the next pay batch stage, which is Leave Accruals. Therefore, when the report is run at the Banked Leave Accruals stage it does not factor in any accruals that will happen at the Leave Accruals stage. However, when the report is run at the Leave Accruals stage or any subsequent pay batch stage, the report factors in leave accruals from the Banked Leave Accruals and Leave Accruals pay batch stages.

The report shows the following information for each leave type that is included on the report:

payee details (name, payee and candidate numbers, agency office, pay group, employment type)
accrual balance
entitlement balance (when run as a pay batch report this value is inclusive of entitlement taken in the current pay batch)
type of value accrued (hours or wages)
combined cost of accrual and entitlement balance (not applicable to leave types with an apply to type of days or those leave types that accrue a fixed number of hours or days)
average rate of accrual (not applicable to leave types with an apply to type of Days or Wages and leave types with an accrual type of Percentage or Bank)
year in which the leave entitlement must be taken (if applicable)
job order and client details (if the accrual is attributable to a specific job).

As in the Leave module, the leave accrual cost shown on the report is the sum of the average accrual rate multiplied by the number of units accrued per instance of accrual. For example, if 2 hours of leave have been accrued during a single week and the accruals were triggered by pay code X, which has a pay rate of $32.50 per hour, and pay code Y, which has a pay rate of $35.95 per hour, the resulting cost of accrual would be as follows:
2 x ((32.50 + 35.95)/2) = $68.45

If the following week another 2 hours is accrued and the accrual is triggered by pay code Y and pay code Z, which has a pay rate of $33.00 per hour, the accrual cost for the second week would be:
2 x ((35.95+33.00)/2) = $68.95

Therefore, the combined cost of the leave accrued at the end of the second week, assuming no leave had been taken or paid out in the interim, would be as follows:
68.45 + 68.95 = $137.40

Note that when leave is paid when taken, the resulting reduction in the accrual cost balance is calculated using the accrual rate. But when leave is cashed out or paid out at termination, the resulting reduction in the accrual cost balance is calculated using the leave rate type that is used by the leave deduction rule that triggers the payment.

For example, in the scenario described above if the payee takes 2 hours leave after the second week of accrual, the accrual cost balance would be recalculated as follows:
$137.40 - (2 x ((32.50 + 35.95)/2)) = $68.95

However, if the payee were to cash out the two hours of leave instead of taking the leave and the applicable leave deduction rule that triggers the payment uses the payee rate, where the payee's rate is $33.55, the accrual cost balance would be recalculated as follows:
$137.40 - (2 x $33.55) = $70.30

Note also that manual adjustments to automatic leave payments in a pay batch can also affect the accrual cost balance calculation. For example, if the accrual quantity is adjusted the adjusted hours are assigned a rate that is equivalent to the rate of the automatic payment which, unless the automatic payment has been made using a FIFO rate, may not match the rate of the original accrual. That is because if there is a difference between the number of hours originally accrued and the number of hours paid as a result of the adjustment, the system cannot determine an original accrual rate for the adjusted hours and therefore defaults to using the payment rate to calculate to resulting reduction in the accrual cost balance.

The filtering criteria for the report differ somewhat from the filtering criteria that are available for existing Accrued Leave Balance report in the Leave module. That is because the filtering criteria have been adapted to facilitate reporting on leave accrual transactions in specific pay batches, which is in line with how most standard payroll reports work in the Payroll module. Specifically, the report can be filtered by the following criteria:

pay period end date from/to
payment date from/to
agency brand, region and office
employment type
pay group
payee name, payee number and candidate number
one or more specific pay batch numbers (pay batch numbers must be separated with a comma if multiple pay batch numbers are specified)
one or more specific leave types

When the report is run as a pay batch report, the pay period end date from/to, payment date from/to, pay group, employment type and pay batch number default based on the pay batch that is being processed and cannot be altered.

Transfer of Leave Accrual into Entitlement

When there has been a transfer of an accrual of a leave type into an entitlement to take leave, the Accrued Leave Balance report displays a separate report line with a negative value in the Accrued Balance column to indicate the number of units being transferred from accrual into entitlement. The Job Order No, Client No and Client Name columns for such report lines are also blank, irrespective of whether the original accrual was attributable to a job order, because those columns identify the job order and client details related to the accrual and not the entitlement.

The accrual balance and entitlement balance values that are shown for transfer transactions balance out with the corresponding accrual transactions for a leave type and therefore the correct accrual and entitlement totals are shown on the report.

For example, consider the excerpt of the Accrued Leave Balance report that is shown below whereby the report has been run as a pay batch report. Prior to running pay batch 2733, the payee had an entitlement of 10 hours for the leave type RDO banked. In pay batch 2733 the payee accrued another 7.50 hours of RDO banked, which was immediately transferred into an entitlement. Therefore, there are two report lines for RDO banked as follows:

one line showing an accrual balance of 7.50 and an entitlement balance of 0.00 against job order 200012481 - this represents the leave that was accrued in batch 2733
one line showing an accrual balance of -7.50 and an entitlement balance of 17.50 - this represents the transfer of the 7.5 hours that were accrued in the pay batch into the entitlement.

Notice also that because the accrued leave is transferred into entitlement immediately, the total accrual balance is 0.00 but the total entitlement balance is 17.50 which is the sum of the entitlement balance prior to processing pay batch 2733 plus the 7.50 hours accrued in pay batch 2733.

Benefits

This enhancement allows payroll staff to report on leave accruals that occurred in specific pay batches and without having to go into the Leave module.

Configuration

No configuration required.