Calculating Leave Liability
The amount of leave an employee is owed needs to be costed as a liability in the general ledger. For leave liability reporting, we have set up earnings that store the monetary value of each employee's leave entitlement. The earnings are not paid as earnings because they do not contribute to NZL GROSS. This is made clearer by having them in a section of their own after the other earnings sections.
Because the GLI flat file only requires the difference between the liability for the last pay period and the current pay period, this is what the Application Engine (AE) leave liability process calculates and passes to GP_GL_DATA.
If an employee has terminated, the stored value of his processed liability has to be reversed out from the GL, since it is no longer a liability.
Reversing Leave Liability on Termination
Termination liability earnings LIAB TER HRS and LIAB TER DYS each have a calculation rule of Amount, where the amount is the corresponding liability earnings:
|
Earnings |
Amount = Earnings (Calc Rule) |
|---|---|
|
LIAB TER HRS |
LIAB ANN HRS |
|
LIAB TER DYS |
LIAB ANN DYS |
Each earning has a generation control, TER GC TERM attached and the generation control's condition is HR Status or Terminated. If an employee is terminated, their leave balance liability earning value becomes the termination liability earning for reversal.