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Holiday calculation method

The holiday calculation method is created from: Salaries > Settings > Holiday calculation settings > Holiday calculation methods > Add new holiday calculation method

Help: Adding a new holiday calculation method

In the example below, the holiday calculation method "Average daily earnings from commission salary (ADE)" is copied.

Target the salary type as the salary type that is the basis for holiday pay > Continue

Remember to enable the selection "Settable for employees" in the next step.

Holiday calculation method divider

By default, the divider for the annual holiday day price in the holiday calculation method is "Workdays performed from the holiday accrual year to be processed". NOTE! This means that the workdays performed are retrieved from the time tracking.

If the company does not use time tracking, the divider must be defined differently. The divider can be defined, for example, using a salary type that calculates weekdays in the pay period. The divider can also be defined with a fixed number.

Creating salary type

Create a new salary type that acts as a divider. The creation of the salary type starts from:

Salaries > Payroll > Salary model management > Select from the salary type name > Formulas > Salary type formulas tab 

> Add new salary type and attach to salary model

Create the salary type as shown in the image below:

  • Salary type name: Pay period workdays
  • Group: Salaries and allowances
  • Payroll group: Not considered
  • Source: User formula
  • Calculation: Included in calculation by default
  • Save

Start adding the salary type formula from the green plus. Set the formula as: Pay period calendar information > Weekdays in the pay period > Save

Go to the "Formatting" tab of the salary model to hide the salary type from the payslip view.

Holiday calculation method divider

Return to the holiday calculation method formula and change the divider.

Salaries > Settings > Holiday calculation settings > Holiday calculation methods > Select holiday calculation method

Set the newly created salary type "Pay period workdays" as the divider and define that the value of the salary type is read from the holiday accrual year to be processed.

The divider must also be defined in the holiday pay accrual divider formula, which is found at the end of the holiday calculation method formula under "Accrual". By default, the accrual formula may include a salary type "Workdays performed in the pay period", which refers to time tracking. If time tracking is not used, the divider must be defined differently.

Alternatives are available as Pay period calendar information > Weekdays in the pay period

Considerations

When defining the divider as a salary type, the salary type must be used in payroll for the value to be generated. Before implementing the salary type, the number of previous workdays must be defined manually, for example, through salary history information or on the payslip.

Salaries > Settings > Payroll settings > Salary history information

If the number of workdays for an individual needs to be changed for a specific month, the correction is made in payroll on the "Payroll accountant view" tab of the payslip.

It is not mandatory to define the calculation formula value for the salary type as weekdays in the pay period if you want to define the days entirely manually in payroll. The style is free as long as the end result is desired and the formulas work! 

 

 

 

 

This article has been translated using an AI-based translation tool. The contents or wording of these instructions may differ from those in other instructions or in the software.


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