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Average Accrual

Payroll | Leave Setup

Summary

IMPORTANT: This method is no longer supported in the product, and will be deprecated in a future release.

The Average method of unit accrual calculates the nett accrued leave when an employee works different hours or days per week.

Average accruals occur in Standard pays only.

An average is calculated using the number of units worked for the leave period (in hours or days) or the Maximum units accrued per week value.

This value is then multiplied by a factor of the elapsed period to give a weekly average. This result is then multiplied by the entitlement (weeks) to arrive at a revised nett accrued value.

It is important to understand that the Nett accrued value in the Employees entity is recalculated during each pay period close for this method. Other methods calculate the current pay period accrual and add it to a previously accumulated value.

Note: Leave tables set up with the "Average Accrual" method are not suitable for employees who do not work regularly.
If in doubt as to which leave accrual method is most suitable for an employee in any situation it is recommended to discuss this with your PayGlobal Consultant.

Available in

This method of unit accrual is available for:

  • Annual leave tables
  • Sick leave tables

Procedure

To calculate the nett accrued for the current leave period when the Method of unit accrual = Avg:

  1. Derive the average days or hours worked per week:

    Qualifying hours (or days) / Weeks worked during the Leave period

  2. Derive the lesser of (step 1) and the Maximum units accrued per week value as entered into the Setup tab of the leave table.
  3. Derive the annual entitlement in units at current rates of accumulation, by multiplying the average (or maximum) units accrued per week (step 2) by the Annual entitlement (in weeks) as entered in the Values tab:

    Result of step 2 * Annual entitlement (in weeks)

  4. Divide the days in the current leave period so far, by the total number of days in the leave period:

    Days elapsed in the leave period / Number of days in the leave period

  5. Finally, calculate the current Total accrued in the employee's leave unit balances for the current leave period:

    Annual entitlement (step 3) * time elapsed (step 4)

See also

Unit Accrual Methods

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