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Effect of pay period dates on holiday accrual

Holiday pay accruals are handled in bookkeeping in Netvisor with a holiday accrual voucher, which is created at Payroll > Holidays > Holiday management > Holiday accumulations. As a rule, the accrued holiday pay and bonus according to the employee's holiday calculation method are recorded on the holiday accrual voucher for the month in which the last day of the pay period of the payslip falls, where holiday accruals are visible on the payslip's "Payroll accountant view" tab. If the program detects a need for accrual changes in the past during the calculation of holiday accumulations, the saved accrual changes are also recorded on the voucher for the processing month. Actual paid holiday pays and bonuses are not handled on the holiday accrual voucher, but the payable holiday pays and bonuses are posted during payroll processing on the voucher created from the payslip.

Formation and posting of holiday pay accrual

Holiday pay accrual is formed during the creation of the payslip in the payroll process. The accrual is formed based on the calculation formulas of the holiday calculation method selected for the employee. If the accrual is formed, it is visible for each employee on the payslip's "Payroll accountant view" tab (in the image below at point 1).

 

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. The bookkeeping settings for accrual are defined per salary model at 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

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. 

You can access the holiday accumulations view from Payroll > Holidays > Holiday management > Holiday accumulations tab. Calculate holiday accumulations with the "Calculate holiday accumulations" button. Holiday accumulations and accrual changes together form the euros that go to the voucher. The view's data can be filtered with various search and filter criteria. The displayed data can be filtered by holiday credit year or calendar year, and by the desired month or the entire year. Columns can also be hidden and shown from the Show columns dropdown menu. 

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. If you want to accrue employer's contributions for holiday pay debt only for the employer's share of insurance percentages, select "Payroll settings" page, option "Reduce employee's share from settlement point's holiday debt". 

Help guide: Settlement points 

If the company uses "Reduce employee's share from settlement point's holiday debt", the insurance percentages for employer's contributions may differ in Holiday pay debt. In this case, remember to check the employee's age and insurance handling.


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.

It is noteworthy that 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. Both the employer's contributions for accrued holiday pay and the release of employer's contributions for paid holiday pay occur on the holiday accrual voucher for the month in which the last date of the pay period falls, for which the accruals or holiday pay payments have been made.

Employer's contribution on paid holiday pay debt

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 for previous months can also be targeted to the cost objects according to the allocation curve of each month's payslip. At the end of this help guide, there is an example of accrual change cost objects. 

Help guide: Accrual changes

The salary types "Holiday pay accrual" and "Holiday bonus accrual" are found in the holiday calculation method salary types. The source for the salary type's cost object is by default "Selected cost objects". The selection should be updated to "Allocation curve", so that holiday pay accrual follows the allocation curve of the payslip in holiday accumulations.

Payroll > Payroll processing > Salary model management > Holiday calculation method salary types tab > Holiday pay accrual > Click on the salary type name > Cost object source: Allocation curve

Cost object does not form even though payslip has allocation curve

For the allocation curve to function and for the cost object to form on the holiday accrual voucher, the payslip must have a value for calculatory (salary in money and gross pay) salary types.

If, for example, the employee is on a monthly salary with unpaid absence for the entire month, meaning the calculatory values on the payslip are 0.00 €, the program does not consider it on the holiday accrual voucher, as there are no values/euros on the calculatory salary types (salary in money, gross pay) from which the program could calculate a cost object-based allocation.

In this case, the cost object must be added manually to the formed holiday accrual voucher.

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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