Calculate the leave entitlement based on actual project costing

If it concerns a leave entitlement calculation based on actual project costing, the calculation method is different from the default method. This description relates to the calculation of the leave entitlement per employee, if one of the following calculation methods is selected in the leave type:

  • Leave entitlement (accrual) based on actual costing
  • Leave (accruing) based on actual costing, leave (taking) via HR

    Using these methods, the leave entitlement is accrued on the basis of the actual costing in Profit Projecten.

  • Leave entitlement (accrual) based on actual costing (excl. 'Absence' hour type)
  • Leave (accruing) based on actual costing (excl. 'Absence' hour type), leave (taking) via HR

    In these cases, the leave entitlement is accrued on the basis of the actual costing in Profit Projecten. Hours which have been posted to an hour type of the Absence type, do not count. You can apply this method to WTR.

The leave entitlement is always calculated for each type of leave per leave period. In many organisations the leave period is equal to a calendar year, but you can also use leave periods per quarter or use a broken financial year.

Profit will recalculate the leave balance when entering the hour lines or when giving approval. This depends on the properties of the type of leave.

Calculate leave entitlement

When calculating the leave entitlement Profit uses the following data:

  • Basic leave entitlement of the leave type (CLA)

    This is the right to leave in hours in case of full-time employment.

  • Workable hours in leave period = Number of working days in leave period * number of hours per week (CLA) / number of days per week (CLA)
  • Total number of hours that provide entitlement to leave = the total number of hours, posted in the actual costing to hour types that provide entitlement to leave.

    You can indicate per hour type whether these qualify for entitlement to leave accrual. For hour types such as Production, Sick and Leave this is the case, for WTR this is not the case.

The leave entitlement is calculated as follows:

Periodical entitlement (basic entitlement) = (Hours in actual costing / Workable hours in leave period) * Basic leave entitlement (CLA)

Periodical entitlement (extra leave entitlement) = (Hours in actual costing / Workable hours in leave period) * Extra leave entitlement (CLA)

Example: 

The leave entitlement per type of leave is configured as follows:

  • Holidays: 200 hours (25 days) per year
  • 'ATV': 84 hours (8 days) per year

    The CLA contains a working week of 40 hours per week. The number of hours per year of a full-time employee is 260 * 40 / 5 = 2,080 hours.

    In January a particular employee has made an entry of 156 hours in the actual costing, which qualify for leave entitlement. This leads to the following leave accrual:

  • Holidays: 156 / 2,080 x 200 = 15 hours.
  • 'ATV': 156 / 2,080 x 64 = 4.8 hours.

    Note: 

    Profit calculates, in the same way as above, the periodical entitlement for each type of leave, unless the employee is not entitled to holidays or WTR on the basis of his employment type. This is specified in the properties of the type of employment in the CLA/term of employment.

    This method does not create leave entries at the employee level. Profit updates the periodical entitlement after each entry in the actual costing.