This guide covers changes in holiday pay accrual, their calculation basis, and handling. The guide advises how to review, edit, save, and delete accrual changes and how they affect the accrual voucher and cost centers.
Payroll > Holiday management > Holiday accumulations
Table of contents
- Basis for accrual change calculation
- Content and handling of accrual change
- Saved and approved accrual change
- Deleting/zeroing accrual change
- Example of accrual change calculation
- Accrual voucher and cost centers
- Holiday pay accrual work steps
- Frequently asked questions
Basis for accrual change calculation
Do holiday pay accrual in Holiday accumulations every month. In addition to new accumulations, changes in employee information can occur, affecting already made holiday pay accruals. The program interprets during "Calculate holiday accumulations" whether the current holiday pay accrual of the employee matches the information of the vouchers already formed and previous accrual changes. If a correction is needed, it is notified in the Holiday accumulations view.
The need for change can arise, for example:
- from a change in the holiday calculation method
- from a change in the salary basis
- from a change in the holiday accumulation rule based on the duration of employment
- during the payment of the final settlement
Note that previously saved accrual changes affect the accrual change. The accrual change works best when all accumulated, taken, and paid holiday days are entered monthly in the employee's holiday information, and holiday days have not been corrected or saved with cumulative information. Holiday information should also be saved so that the accumulated holidays in the previous holiday determination year are the same as those paid in the next holiday determination year.
Content and handling of accrual change
Follow the notification of the need for accrual change, which is displayed with an orange triangle "Show accrual change need".
- Open the Accrual changes review view either from the "Show all employees" link or the employee-specific "Show accrual change need" link.
- Review detailed Old values and New values information and the Change column formed from their difference.
- Edit the figures in the New values section if necessary.
Old values show holiday accumulations or euros and days from previous accrual changes for holiday pay accrual. The Change column compares monthly accumulated holiday days to paid holiday days. For example, if 2.5 holiday days have accumulated, but 6 days have been marked as paid, the accrual change shows -3.5 days.
Therefore, also check the impact of saved accrual changes from previous months in the Holiday pay debt view and the employee's previous holiday accumulations, for example, through the Holiday pay debt view's "All information" link.
You do not have to save the accrual change offered by the program. Use the buttons "Save" or "Cancel" found at the bottom right of the page. Save the proposed accrual change only after you have checked the employee's information and all months from the Holiday pay debt view or Holiday accumulations.
Saved and approved accrual change
The information of the saved and approved accrual change need is displayed as a white info icon on the left side of the "Holiday pay" and/or "Holiday bonus" columns. Hover the mouse pointer over the info icon to see what accrual changes affect the information of the accrual voucher for that month.
If you edit a holiday accumulation that has been affected by accrual changes, the system replaces the accrual change with the value you entered. Then the total balance appears in the Holiday accumulations view.
Example: If the holiday pay accumulated in August is €200.00 and the approved accrual change proposal is €150.00, the accrual change affects April, May, and June 2022 according to the info icons. Their total sum of €400.00 is recorded in the bookkeeping as August's holiday pay debt on the accrual voucher.
Deleting/zeroing accrual change
After saving, the euros of the accrual change cannot be deleted except by editing new values in the accrual change edit view to get a +/- entry in the change section. For example, if the accrual change shows accumulated holiday pay of - €300 and this is to be zeroed, edit the accrual change so that you get + €300 in the "Change" column for accumulated holiday pay. This way, the accrual change is zeroed.
Example of accrual change calculation
In the example, the monthly salary has increased from €2000 to €2300, requiring an increase in the January-February accrual.
Old values
In January and February, the Old values section shows Accumulated holiday pay of €160 and Accumulated holiday bonus of €80. The amount is calculated based on the holiday calculation method formula: Monthly salary / 25 x holiday days accumulated in the month.
The old value is formed by the calculation formula 2000 / 25 x 2 = €160, and the Accumulated holiday bonus amount is half of the holiday pay accrual amount, i.e., €80.
New values
New values section offers corrected information: 2300 / 25 x 2 = €184 holiday pay and €92 holiday bonus.
Change
A change is needed for January and February's holiday pay totaling €48 and holiday bonus totaling €24. No change is shown for March, as its voucher is still being formed.
- Old value: 160
- New value: 184
- Accrual difference: 184 - 160 = 24
- Daily price: 24 / 2 = 12
- Accrual change: Unpaid holiday days 2 days x 12 € daily price = 24 €
When you save the Accrual changes review view information, approved changes are transferred to the Accrual changes section columns, and the accrual change need link disappears. The Accrual voucher information section columns now show the total of Accumulations and Accrual changes, forming the euros for the accrual voucher. The voucher is formed by selecting "Preview and form voucher" from Holiday accumulations.
Accrual voucher and cost centers
The accrual voucher row description details which rows are formed from the accrual change and what is the new holiday pay debt.
In the example below, the employee's January payslip had Helsinki as the calculation target and February had Pori. The voucher shows that January-February's accrual change of €72 is recorded for January's change according to the January payslip's Allocation curve for Helsinki and February's change according to the February payslip's Allocation curve for Pori.
Additionally, March's new accumulation is recorded according to March's payslip's Allocation curve for Lappeenranta. All accrual euros are recorded on March's voucher, but the accrual change considers the calculation targets of the change months in the voucher entries.
Holiday pay accrual work steps
- Calculate holiday accumulations from Holiday management "Calculate holiday accumulations" button.
- Check the employee's accrual change need.
- Drill down to the Accrual changes review view from the "Show accrual change need" link.
- Approve the accrual change with the "Save" button or select "Cancel".
- Check the Accrual voucher information section for total accumulations and accrual changes.
- Form the accrual voucher from Holiday management accrual voucher.
Read more about Handling holiday pay debt in bookkeeping.
Frequently asked questions
What has formed the accrual change?
The information of the accrual change does not directly state the reason. You can deduce the reason by comparing old and new values.
The need for change can arise, for example:
- from a change or removal of the holiday calculation method,
- from a change in the salary basis or
- from a change in the holiday accumulation rule based on the duration of employment
- during the payment of the final settlement
- more holiday has been paid than accumulated in the previous year
I paid the final settlement with the HolidayKTA calculation method. Why is the accrual change so large?
The final settlement function currently works only for monthly salaried employees also from new holiday accumulations. If the final settlement is calculated with another holiday calculation method, the program tries to correct the overpaid holiday compensation with an accrual change.
User guide: Final settlement preview
How can I edit the accrual change?
Edit the accrual change on the Holiday accumulations page from the employee-specific "Show accrual change need" link or "Show all employees" link.
Why can't the accrual change be edited for the month being handled?
The accrual change always handles past already calculated holiday accumulations. The accrual change cannot be made for a month where accumulations have not yet been saved.
Why doesn't the editing of the accrual change succeed?
Editing is not allowed if a holiday pay accrual voucher has already been formed for the month. The accrual change always handles past already calculated holiday accumulations.
How do I delete a saved accrual change?
After saving, the euros of the accrual change cannot be deleted except by editing new values in the accrual change edit view to get a +/- entry in the change section. For example, if the accrual change shows accumulated holiday pay of - €300 and this is to be zeroed, edit the accrual change so that you get + €300 in the "Change" column for accumulated holiday pay. This way, the accrual change is zeroed.
Keywords: holiday pay accrual, accrual change, holiday accumulations, holiday pay debt, holiday calculation method, final settlement, accrual voucher
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