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Average Hours Accrual

Payroll | Leave Setup

Summary

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

This accrual method is based on the twelve month rolling average hours per week field on the Long Service Leave table - Details (i) screen.

Average hours accruals occur in Standard pays only.

The accrual would need to be recalculated each pay in order to base it on the current average value.

This accrual method is most useful for a company that want to calculate long service leave accrual in hours, as opposed to weeks, in line with other leave table calculations.

An added advantage is that you can now enter fractions of a week for long service accrual.

A twelve month history is necessary before this field is up and running at full functionality.

Calculation

This method looks at the Average hours per week field on the Long Service Leave tab page of an employee record. It uses the following calculation:

The proportion of the LSL year * Average hours per week * Weeks due at next allocation (from the Long Service Leave table)

This value is recalculated every period. It does not accumulate.

What happens?

By selecting this accrual method, a user must enter the 'Type of unit' as

'Hours' in the Long Service Leave table. Attaching the table to employees allows the long service leave to accrue hourly based on the value in the 'Average hours per week' field in the employee record. The accrual is re-calculated every pay period according to the average hours per week which is also calculated every pay period. The leave liability is updated accordingly after the pay close.

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