PR> Maintenance> Accrual

Accrual Maintenance

Summary

The Accrual Maintenance window is used to create and maintain accrual codes. Accrual codes determine how accruals are calculated when payroll checks are generated.

Accruals are attached to employees using the Employee Maintenance window (PR> Maintenance> Employee> Accruals tab). Click here for information on the Accruals tab of the Employee Maintenance window. When an accrual is attached to an employee record, you must attach an accrual and accrual type. The accrual type determines how the accrual will display on the payroll check. Click here for information on Accrual Types.

Accruals can be set up with capped limits. For example, if an employee should never accrue more than 9 hours of sick time during a pay period, you can set up that cap on the accrual record or on the employee record. If there is a cap set up on the accrual record and the employee record, the cap source selected on the Accruals tab of the Employee Maintenance window will be applied. The amount accrued over the cap can be erased, rolled over onto another accrual or paid out using a pay code. Click here for information on Accrual Caps.

Related Links

Click here for an Overview on Accruals.

Click here for information on Accrual Type Code Maintenance.

Step by Step

2 Create a new accrual code.

The Create Accrual window is used to create or maintain accrual codes. It consists of a General section and an Account section.
Enter an accrual code in the Code field. The accrual code can be up to 10 alphanumeric characters.

When you attach an accrual to an employee record, you have to attach an accrual type. Generally, only the accrual type code attached to the employee record will display on the payroll check stub.

Enter a description of the accrual in the Description field.
The Status field is used to set the accrual as Active or Inactive. The new accrual will be Active by default.
Enter an Accrual Type or click the field search button to select one from a list.
- When the new accrual is attached to a PR employee record, the selected accrual type will automatically populate the Accrual Type field (PR> Maintenance> Employee> Accruals tab> Details sub-tab> Accrual Type field).
- Accrual types are created and maintained on the Accrual Type Maintenance window (PR> Maintenance> Accrual Type). Click here for information on Accrual Type Maintenance.
The Accrual Frequency field is used to select when the accrual will be applied. The selection in this field affects the functionality of the Accrual Rate field.

Select Every pay period if you would like to apply the accrual to the employee each time a payroll check is generated. The value in the Accrual Rate field will be applied to the employee each time a payroll check is generated on the employee record.
Select On employee anniversary if you would like to apply the accrual once each year on the employee’s anniversary date. The anniversary date is entered on the employee record using the Employee Maintenance window (PR> Maintenance> Employee Maintenance> General Info tab> Anniversary Date field). For example, if an accrual is applied on the anniversary date of the employee, the accrual will be applied when the anniversary date falls between the period begin and period end date of a payroll checks batch (PR> Computer Checks> Generate> Period Begin Date and Period End Date field).
Select Annually on if the accrual should be applied once every year on a specific date. This will enable the Annual Date field in order to enter the date you would like to apply the accrual. The accrual will be applied to the employee when the annual date falls between the period begin date and period end date of a payroll checks batch.

The Annual Date field is used to enter the specific date the accrual will be accrued annually. This field is only enabled when Annually On is selected in the Accrual Frequency drop-down menu.
The Manual Multiplier field is used to enter a multiplier that will be applied to accrual hours that are manually entered when payroll checks are created in the Computer Checks process. This is generally used for compensation time (comp time) accruals.

When accruals are manually modified using the Time Cards Maintenance window (PR> Computer Checks> Time Cards> Create icon> Accruals tab> Additional column), the hours entered in the Additional column will be multiplied by the value in the Manual Multiplier field. For example, if you manually add 2 hours to the time card using the Additional column and the Manu Multiplier is 1.5, 3 (1.5 * 2) accrual hours will be added to the employee time card.
The Manual Multiplier field only affect hours entered in the Additional column. This does not affect how accruals are calculated.

The Rates based on drop-down menu is used to select how the accrual rate is applied.

Select Months Employed if you would like to apply the accrual based on the number of months the employee has been employed. The number of months an employee has been employed is calculated based on the anniversary date on the employee record. The anniversary date is entered on an employee using the Employee Maintenance window (PR> Maintenance> Employee> General tab> Anniversary Date field).

When a Payroll module Computer Checks batch is generated (PR> Computer Checks> Generate), a period end date is assigned to the checks in the batch (PR> Computer Checks> Generate> Period End Date field). The period end date of the Computer Checks batch will be compared to the anniversary date on the employee record to determine the number of months the employee has been employed. For example, if an employee has an anniversary date of 12/26/2020, the period end of the Computer Checks batch is 12/31/2022, and the accrual is set up to apply to employees that have been employed for more than 24 months, the accrual will apply to the employee because the anniversary date is occurs during or prior to the period end date on the batch. If the anniversary date of the employee was 01/01/2023, the accrual would not apply since the anniversary date is after the period end date on the Computer Checks batch.
If the above example, the entire accrual amount will be applied to the employee. If you would like the accrual to prorate on the employee record, check the Prorate Accrual toggle on the Employee Maintenance window (PR> Maintenance> Employee> Financial tab). Click here for information on the Financial tab of the Employee Maintenance window.

Select Accrual Balance if you would like to apply the accrual based on the balance of another accrual code. This will enable the Rate Accrual Code field to enter the accrual code.

The Rate Accrual Code field is used to enter the accrual the accrual rate will be based on. This field is only enabled if you select Accrual Balance in the Rate Based On drop-down menu.

Click the Rate Accrual Code field search button to select an accrual code from a list.

The Annual Cap Date, Specified Cap Date, Capped Hours Action, Rollover Accrual Code and Rollover Over Pay Code fields are used to set up a cap on the accrual record. You can set up a cap an annual cap on the accrual record or on the employee record. The cap amount set up on the employee record will override the cap set up on the accrual record. This allows you to customize the cap on each employee record. Click here for general information on capping accruals.
The Annual Cap Date field is used to select the date used to cap the accrual amount. This field only applies when there is an annual cap set up on the accrual. Annual caps amounts are entered in the Annual Cap column at the bottom of the window.

Select Employee anniversary if the accrual should be capped annually using the employee anniversary date. The employee anniversary date is entered on an employee record using the Employee Maintenance window (PR> Maintenance> Employee> General tab> Anniversary Date field).
Select Specified Date if the accrual should be capped annually using a specific date. This will enable the Specified Cap Date field to enter the cap date.

The Specified Cap Date field is used to enter a specific annual cap date. This field is only enabled when Specified Date is selected in the Annual Cap Date field.
The Capped Hours Action field is used to select where capped accrual hours will go.

Select Erase if you would like accrual hours above the cap to be erased.
Select Transfer to accrual if you would like the accrual hours above the cap to be transferred to an accrual code. This will enable the Rollover Accrual Code field to select the accrual code you would like the accrued hours to rollover onto.
Select Pay out with pay code if you would like the accrual hours above the cap to be paid out using a pay code. This will enable the Rollover Pay Code field to enter the pay code you would like to use to pay out the excess amount. When the accrued hours are paid out, they will be paid out using the hourly rate attached to the employee record. If there is a rate multiplier attached to the pay code selected in the Rollover Pay Code field, the hourly rate on the employee record will be multiplied by the rate multiplier on the pay code. For example, if the employee record has an hourly rate of $10 an hour and the pay code has a rate multiplier of 1.5, the accrual hours will be paid out at $15 an hour (1.5* 10).
Select Roll cap amount then erase if you would like to roll the accrued hours, up to the cap amount, onto the specified Rollover Accrual Code and then erase the remaining balance. This will enable the Rollover Accrual Code field to select the accrual code you would like the accrued hours to rollover onto. This option is most often used when accrual rates with more than two decimal places are required. These accrual rates can cause the total annually accrued hours to exceed the annual cap by a small fraction of an hour. The system will roll over the accrued amount up to the annual cap and then erase the remaining fraction to minimize accounting complexity.

The Rollover Accrual Code field is used to enter the accrual code you would like the accrual hours above the cap to be rolled onto. This field is only enabled when either Transfer to accrual or Roll cap amount then erase is selected in the Capped Hours Action field. Click the Rollover Accrual Code field search button to select an accrual code from a list.
The Rollover Pay Code field is used to select the pay code you would like to use to pay out accrual hours above the capped amount. This field is only enabled when Pay out with pay code is selected in the Capped Hours Action drop-down menu. Click the Rollover Pay Code field search button to select a pay code from a list.

Pay codes are created and maintained using the Pay Code Maintenance window (PR> Maintenance> Pay Code).
Do not select a regular pay code to pay out the capped amount. The pay code selected in this field should be set up specifically for the payout.
When the accrual is paid out using the pay code, the accrual will be paid out using the hourly wage of the employee. If there is a rate multiplier attached to the pay code used to pay out the accrual amount (PR> Maintenance> Pay Code> Rate Multiplier field), the multiplier will be applied when accrual hours are paid out.
When the capped accrual amount is paid out using a pay code, the timecard line item generated to pay out the capped amount will display on the System Timecards tab of the Timecard Maintenance window. Click here for information on the System Timecards tab of the Timecards Maintenance window.

The Bonus Accrual Code, Bonus Amount and Qualifying Amount fields are used to set up bonus accruals. Bonus accruals are accrual codes that are credited when an employee limits their usage of another accrual code. For example, an organization could reward an employee with 8.0 hours of time off if that employee took no more than 16.0 hours of sick time in a year.
- The Bonus Accrual Code field is used to specify which accrual code will be credited.
- The Bonus Amount field is used to specify how much credit will be added to the Bonus Accrual Code.
- The Qualifying Amount field is used to specify the maximum amount of the current accrual code that an employee can use in order to receive the bonus accrual credit.
- Click here for more information on Bonus Accruals.
The Always Eligible toggle is used in conjunction with the unions set up in the Human Resources module. Check this toggle if all employees, regardless of union, can use the accrual.
- The Always eligible toggle determines if the accrual is specific to a union. When this toggle is checked, the accrual can be used by any employee.
- When this toggle is not checked, only employees that belong to a union with the accrual attached can use it (HR> Maintenance> Union Unit> Accruals tab).
- If you check this toggle, you can still add the accrual to a union unit and set it up as a required record, but the accrual can also be attached to employees that do not belong to a union unit. For example, if you are creating an accrual that is used by the members of a specific union unit, but should also be available employees that do not belong to the union unit, check the Always eligible toggle and add the accrual to the union unit (HR> Maintenance> Union Unit> Accruals tab).
- NOTE: If Union Units are not being used, the Always eligible toggle MUST be checked.
- Click here for an overview on union units.
- Click here for information on union unit maintenance.
The Accounts section is used to attach GL accounts to the accrual. The fields on this tab will only be enabled when the Use general ledger distribution of accruals toggle is checked on the Payroll module Setup window (PR> Utilities> Setup> Accruals tab).
Enter a debit and/or credit GL account in the Debit Account and Credit Account fields if you want to impact the GL when the accrual is applied to the payroll check.
- Click the Debit Account or Credit Account field search buttons to select a GL account from a list.
Click here for information on how the GL accounts entered in these fields will affect the journal entry generated by the Computer Checks and Manual Checks process.
Click ADD in the data grid at the bottom of the screen to enter an accrual schedule. This will add a line item to the data grid and open the Level section to the right.
The Level field is used to determine when the accrual will take effect. The functionality of the Level column depends on the selection in the Rate Based On drop-down menu.

If Months Employed is selected in the Rate Based On drop-down menu, the Level column represents the number of months an employee has been employed before the accrual will be applied. The number of months an employee has been employed is calculated using the anniversary date attached to the employee record (PR> Maintenance> Employee> General tab> Anniversary Date field).

For example, if an employee begins to accumulate flextime after they have been working at the organization for 6 months, the accrual will calculate the 6 months based on the anniversary date of the employee. It will not use the hire date of the employee. If an employee has an anniversary date of 05/15/2022, the accrual will be applied to the employee when the pay period end is greater than 11/15/2022.
Enter zero if the accrual should be applied immediately.

Enter the number of hours to accrue in the Accrual Rate field. The functionality of the Accrual Rate field depends on the selection in the Accrual Frequency drop-down menu.

If Every pay period is selected in the Accrual Frequency drop-down menu, the value in the Accrual Rate field will be added to the employee each time a payroll check is generated. For example, if an employee accrues 4 hours of time off each paycheck, enter 4 in the Accrual Rate field and select Every pay period in the Accrual Frequency drop-down menu.
If On employee anniversary is selected in the Accrual Frequency drop-down menu, the value in the Accrual Rate field will be applied to the employee each time a payroll check is generated on the employee anniversary date (PR> Maintenance> Employee> General tab> Anniversary Date field). For example, if an accrual is applied on the anniversary date of the employee, the accrual will be applied when the anniversary date falls between the period begin and period end date of a payroll checks batch (PR> Computer Checks> Generate> Period Begin Date and Period End Date field).
If Annually on is selected in the Accrual Frequency drop-down menu, the value in the Accrual Rate field will be applied on the date entered in the Annual Date field. The accrual will be applied to the employee when the annual date falls between the period begin date and period end date of a payroll checks batch.

Check the Apply Period Cap toggle if you would like to apply a period cap to the accrual. The period cap will cap the number of accrual hours during a pay period, and it will also cap the balance of the accrual every period using the period cap.

For example, if an accrual has a period cap of 10 hours, it will apply the 10 hour cap to every pay period. This means the employee will not be able to accrue more than 10 hours during any one pay period and the balance on the accrual cannot exceed 10 hours.
If hours are rolled over from another accrual to this accrual, the period cap will be applied to the hours being rolled over. For example, if there is a period cap of 25 hours set up on the accrual, accrual hours rolled over to this accrual will be capped at 25 hours.
The hours above the cap will be processed depending on the selection in the Capped Hours Action drop-down menu.

If the Do not cap rolled hours toggle is checked (PR> Utilities> Setup> Accruals tab> Do not cap rolled hours toggle), the period cap will not be applied to the hours as they are rolled over. But once the paycheck has been committed, the rolled accrual hours will become part of the accrual balance, so any period cap set up on the accrual will be applied the next time a paycheck is generated.

Additional hours entered on an accrual will apply to the period cap unless the Do not cap additional hours toggle is checked (PR> Utilities> Setup> Accruals tab> Do not cap additional hours toggle). But once the paycheck is committed, the additional hours will become part of the accrual balance, which the period cap will be applied to on the next paycheck. For example, if an accrual has a period cap of 15 hours, and 20 additional hours have been added to the balance on the previous paycheck, the current paycheck will apply the period cap of 15. This means the five hours over the cap and any new hours accrued will be capped.
Use the Capped Hours Action field to set up where the capped hours should go.

Enter the period cap in the Period Cap field. The value entered in this field will only be applied as the cap if the Apply Period Cap toggle is checked.
- When you attach an accrual to an employee record, you can set a cap amount (PR> Maintenance> Employee> Accruals tab> Max Hours field). The cap amount set up on the employee record will override the cap amount set up in this field.
Check the Apply Annual Cap toggle if you would like to apply an annual cap to the accrual. Annual caps are used to cap the number of accrual hours during an annual period. The annual time period used to cap the accrual amount is set up in the Annual Cap Date field.

Use the Capped Hours Action field to set up where the capped hours should go.

Enter a year-end roll over cap in the Annual Cap field.
The value entered in this field will only be applied as the annual cap if the Apply Annual Cap toggle is checked.

When you attach an accrual to an employee record, you can set a cap amount (PR> Maintenance> Employee> Accruals tab> Max Hours field). The cap amount set up on the employee record will override the cap amount set up in this field.

The Annual Capped Hours Limit field is used to determine how many hours will transfer to the selected rollover accrual code when the annual cap date hits.
- For example, if the Annual Capped Hours Limit is set at 50, the Capped Hours Action was set to Roll cap amount then erase, and the employee had 80 hours accrued on the Annual Cap Date, 50 hours would be transferred to the Rollover Accrual Code and the rest would be lost.
Click the Add Level button when complete.