Vacation & Sick Accruals with Dynamics GP PTO Manager

Thoughtware Article Published: Mar 14, 2012
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In my last post, I talked about the standard vacation and sick accrual functionality, within Dynamics GP Payroll. To review, Dynamics GP Payroll accruals include:

  • Two buckets for accrual—vacation or sick
  • Two methods for accrual—set amount per pay period or annual amount based on hours worked
  • Manually set levels for accrual and manually change levels

PTO Manager expands this capability to include accrual levels based on seniority and additional functionality, such as carryover maximums and waiting periods. PTO Manager is an additional purchase, so if you are unsure of your licensing, contact us.

PTO Manager has four key setup windows accessed from HR & Payroll.

PTO Options Window
Age | Setup | Payroll | PTO Manager

PTO Options Window

In this window, select whether the accrual levels should be based on adjusted hire date or hire date. If you adjust the hire date for leaves/rehires, you might opt to select Adjusted Hire Date here. There also is an option to activate a separate year-end close for the PTO Manager module (separate from standard payroll). You might mark this if you do not want carryover to be automatically calculated at year-end (or on the anniversary date). You can then run the year-end manually.

PTO Setup Window

PTO Setup Window

You can define different PTO profiles, identified by a PTO code to be applied to employees. All of the settings specified at this level also can be specified at the individual employee level. This window outlines the key differences from the standard GP Payroll functionality for accruals.

  • Just like Dynamics GP Payroll, you can accrue two different buckets of time:  Vacation and Sick.
  • For each type of time, you can apply up to two schedules for accruals. These schedules, which we will discuss next, allow the accrual amount to vary by different factors, including seniority.
    • You might apply a second schedule to give an employee a “bonus” accrual amount or for employees allowed to “buy up” to the next accrual level. In these cases, the second schedule would account for the bonus or additional accrual amount. The accrued amounts calculated for both schedules are added together to determine the employee’s accrual amount.

You also can specify:

  • Waiting Period
    • This is the period in which accruals occur but the employee cannot use the accrued amount. It can be a one-time waiting period, or you can choose to have a recurring waiting period every year.
  • Carryover Maximum
    • This is the amount an employee can carry over from year to year. It can be based on a calendar year (by default) or the employee’s anniversary date.
  • Anytime Maximum
    • This is the maximum available amount an employee can have at any time during the year; this may or may not be the same as the carryover maximum. You can set up a schedule to allow employees different anytime maximums based on years worked.

Accrual Schedule Setup

Accrual Schedule Setup

This window defines the schedules assigned to vacation and sick time. You can specify the levels of the schedule, meaning how an employee moves up in the accrual schedule, using the “Range Based On” field:

  • Years Worked – Accrual levels are determined by the number of years an employee has worked for the company.
  • Hours Worked/Pay Period – Accrual levels are determined by the number of hours an employee has worked in a pay period.
  • Hours Worked/Year – Accrual levels are determined by the number of hours an employee has worked in a year.
  • Hours Worked Life To Date – Accrual levels are determined by the number of hours an employee has worked since they were hired by the company.

The maximum amount an employee accrues at each level is determined by the “Maximum Hours Based On” field:

  • Pay Per Period/Variable – The maximum hours an employee can accrue is set by pay period and can be different for each level in the schedule.
  • Pay Per Period/Fixed – The maximum hours an employee can accrue is set by pay period and is the same for all levels in the schedule.
  • Per Year/Variable – The maximum hours an employee can accrue is set by year and can be different for each level in the schedule.
  • Per Year/Fixed – The maximum hours an employee can accrue is set by year and can be different for each level in the schedule.

In the grid, you can enter the detailed levels for the schedule:

  • Range From/To – The range of years or hours (depending on the selection in the “Range Based On” field) that applies to the level
  • Calculation Factor – The factor applied to the hours worked to calculate the accrued hours (if the employee works 40 hours and the calculation factor is .08, they would accrue 3.2 hours for the pay period), which applies up to the maximum specified for the level; if the employee should always accrue the maximum for the level, you would set the factor to 9.99999.
  • Maximum Hours – The maximum hours an employee can accrue for the pay period or year (based on the selection for Maximum Hours Based On) for this level

Maximum Schedule Setup

Maximum Schedule Setup

When setting up PTO codes, we discussed the concept of an anytime maximum—how much available time an employee can have at any point during the year. This can be a fixed amount, or if you select variable, you can apply a schedule like the one above. These schedules are based on years worked and allow you to vary the anytime maximum based on the employee’s seniority.

Once you have the setup completed, you can apply the settings to individual employees. This step is necessary if you wish to use PTO Manager to accrue vacation and sick time.

Employee PTO Maintenance
Cards | Payroll | PTO

Employee PTO Maintenance

As you can tell, many of these settings can default from the PTO code setup. Additional fields available at the employee level include “Life To Date Hours Worked” and “Accrued Hours.”

Hopefully, this blog post will help identify some of the key differences in PTO Manager from standard Dynamics GP Payroll accruals, including:

  • Schedules for accrual levels, based on years or hours worked
  • Ability to apply a secondary schedule for bonus or buy-up vacation/sick time
  • Automatic tracking of waiting periods
  • Controls for carryover and anytime maximums

If you have questions about PTO Manager, or if it is a good fit for your accrual needs, contact us.

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