Holiday pay accruals and their postings in Netvisor are handled centrally with the holiday accrual voucher. This guide explains how pay period dates affect accrual, how postings are formed per salary model, and how cost objects for holiday accumulations are managed.

CONTENT

Effect of pay period dates on holiday accrual

Payroll > Holidays > Holiday management > Holiday accumulations

  1. Create the holiday accrual voucher in the aforementioned view.
  2. Note that accrued holiday pay and bonus are recorded on the voucher for the month in which the last day of the pay period of the payslip falls.
  3. Check accruals from the "Payroll accountant view" tab of the payslip.
  4. Note that accrual changes affecting the past can be approved on the voucher for the processing month, more information in the guide Accrual changes
  5. Remember that actual paid holiday pays are not handled on this voucher, but are posted during payroll processing.

Formation and posting of holiday pay accrual

  1. Create a payslip, where accrual is automatically calculated according to the selected holiday calculation method.
  2. Check the formed accrual for each employee from the "Payroll accountant view" tab.

The image above shows that the salary types "Holiday pay accrual" and "Holiday bonus accrual" do not have bookkeeping postings defined in the salary type settings, as these bookkeeping entries are made only on the holiday accrual voucher.
Payroll > Payroll processing > Salary model management > click on the salary model name > Holiday settings tab

The postings for holiday pay accrual are thus a salary model-specific choice. The holiday pay debt for all employees belonging to that salary model is recorded on the same bookkeeping accounts, regardless of which holiday calculation method they use. This way, the same holiday calculation methods can be used for employees of several different salary models.

Holiday accumulations and holiday accrual voucher

Payroll > Holidays > Holiday management > Holiday accumulations tab

  1. Calculate holiday accumulations with the "Calculate holiday accumulations" button.
  2. Holiday accumulations and saved accrual changes together form the euros that go to the voucher.
  3. Filter the view's data with search and filter criteria (holiday credit year, calendar year, month).
  4. Hide or show desired columns from the "Show columns" dropdown menu.

Holiday pay accrual is recorded in Holiday accumulations as an expense in bookkeeping and as holiday pay debt in the balance sheet. When holidays are paid, the holiday pay debt formed in bookkeeping is released.

Employer's contribution on holiday pay debt

In Holiday accumulations, employer's contributions are also calculated for the formed holiday pay accrual. The percentages set for settlement points are used for calculating employer's contributions. The same percentages are also used for accruing employer's contributions for salaries in monthly obligations.

  1. If you want to accrue only the employer's share of insurance percentages, select "Payroll settings" page, option "Reduce employee's share from settlement point's holiday debt".
  2. Check the employee's age and insurance handling if you use the aforementioned setting, as percentages may differ.
  3. If you do not want to accrue employer's contributions from holiday pay debt, select "Payroll settings" page, option "Do not accrue employer's contributions from holiday debt"

Help guide: Settlement points

The release of employer's contributions for paid holiday pay debt also occurs in holiday accumulations. The calculation is done for the month according to the end date of the pay period.

Both the employer's contributions for accrued holiday pay debt and the release of employer's contributions for paid holiday pays occur on the holiday accrual voucher at Payroll > Holidays > Holiday management > Holiday accumulations.

Employer's contribution on paid holiday pay debt

Payroll > Payroll processing > Salary model management > click on the salary model name > Holiday settings tab

If no salary model-specific exceptions are set, the release of employer's contributions for paid holidays for each employee is posted according to the default postings of the settlement point to which the employee is linked. The employer's health insurance contribution is posted according to the accounts selected in the payroll settings.

By default, Netvisor's holiday settings postings are designed so that the debit account for the release of employer's contributions for paid holiday pay debt uses the selected holiday accrual profit and loss statement account, so that the employer's contributions for paid holidays are released from the same place where holidays have been accrued, and the credit account uses the desired balance sheet account. 

In the posting of the release of employer's contributions for paid holiday pay debt, it is good to consider the overall posting of employer's contributions in Netvisor, how employer's contributions are handled in monthly obligations for all salaries and affect the result. 

Posting of paid holiday pays

The bookkeeping settings for paying holiday salary types are set at Payroll > Payroll processing > Salary model management > Holiday calculation method salary types > click on the salary type name > bookkeeping settings

With default settings, the posting settings for paying holiday pays are designed to release the holiday pay debt accrued in the balance sheet during the accrual phase. The expense for holiday pay reservation is thus recorded as the expense for each holiday earning month already during the accrual phase. Any cost allocation occurs according to the cost object information of the payslips. Paying holiday pays no longer affects the profit and loss statement at the time of payment, as the expense has already been recorded in bookkeeping during the accrual phase. 

Since paid holiday pay and holiday bonus are posted on the payroll voucher, the postings for paying salary types should target balance sheet accounts to reduce the holiday pay debt accrued in bookkeeping. An exception to this are salary types used directly for payment without making accruals, such as "Holiday compensation in each pay period".

When holiday pay and holiday bonus are paid, the transaction is recorded on the payroll voucher. Since the payment releases the holiday pay debt formed in bookkeeping, the transaction is recorded only on balance sheet accounts. Therefore, the posting does not affect bookkeeping cost object calculation. Thus, in holiday calculation, the timing of holiday payment does not affect the cost object calculation of holiday pay debt at all. 

Cost object of holiday accumulation

Holiday accruals follow the allocation curve of the payslip. Accrual change needs can also be targeted to the cost objects according to the allocation curve of the payslip.

Help guide: Accrual changes

Payroll > Payroll processing > Salary model management > Holiday calculation method salary types tab > Holiday pay accrual > Click on the salary type name

  1. Select "Cost object source" as "Allocation curve" if there is another option and you want the accruals' cost objects to come from the payslip's allocation curve.

Cost object does not form even though payslip has allocation curve

For the allocation curve to function, the payslip must have a value for calculatory salary types (salary in money and gross pay). If the employee has, for example, a full month's unpaid absence and the calculatory salary types' values are 0.00 €, the program cannot form the allocation. In this case, add the cost object manually to the holiday accrual voucher.

Frequently asked questions

To which month is the holiday accrual recorded?
Holiday pay and bonus are recorded on the holiday accrual voucher for the month in which the last day of the pay period of the payslip falls.

Does paying holiday pays affect the company's result at the time of payment?
With Netvisor's default settings, it does not affect, as the expense for holiday pay reservation is recorded in the profit and loss statement already during the accrual phase (earning month). At the time of payment, the transaction releases the debt accrued in the balance sheet.

Why didn't the cost object transfer automatically to the holiday accrual voucher?
This is usually because the calculatory values (such as gross pay) on the payslip were 0.00 €, so the program cannot calculate the allocation curve-based allocation. Add the cost object manually in this case.

How are employer's contributions for holiday pay debt calculated?
The calculation uses the insurance percentages set for settlement points.

Keywords: holiday accrual, holiday pay debt, holiday accumulations, posting, allocation curve, cost objects, employer's contributions, holiday bonus accrual, salary model, settlement point

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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