Defining Base Entitlements

Objective

After completing this lesson, you will be able to define base entitlements for employee absences

Base Entitlement and Accrual Entitlement

Base Entitlement Period

For each absence quota type, you can store a total entitlement (in days or hours) based on a specified period such as a calendar year. The base entitlement is a theoretical value used as the basis for calculating the accrual entitlement.

Accrual Period

The accrual period describes the interval that applies when calculating the absence credit. The accrual period can be selected independently of the base period (such as payroll period, month, and so on). The accrual and base periods can also be identical.

Accrual Entitlement

The accrual entitlement is the absence entitlement calculated for an accrual period. The calculation of the accrual entitlement is based on the base entitlement. By comparing the base period and the accrual period, the system converts the base entitlement to the accrual period, and, in this way, determines the accrual entitlement.

For example, the accrual entitlement for a base entitlement of 24 days per year, based on an accrual period of 1 month, is 2 days.

You can set the accrual period based on the following factors:

  • Collective agreements
  • Legal provisions
  • Internal company policy

Definition of Base Entitlements

The base entitlement represents the calculation base used to calculate the proportionate absence entitlement for each accrual period.

The base entitlement can be determined on the basis of an employee’s age or seniority. If you want to define different base entitlements for each age or seniority interval, you can summarize these in one rule. The individual intervals of the rule are differentiated by the assigned sequential number. The different base entitlements are distinguished from each other by open-ended intervals.

The base entitlement is related to a fixed period. It can be determined in one of the following ways:

  • Based on a calendar year or any period of your choice
  • Determined using time evaluation or payroll periods
  • Determined on the basis of the accrual period

Define Base Entitlements

ExerciseStart Exercise

Business Example

Employees in your company are entitled to different leave entitlements based on their seniority. Employees with 0 – 5 years of service are entitled to 25 days of leave. Employees with more than 5 years of service are entitled to 28 days of leave. As the time administrator, you are responsible for ensuring the correct base entitlements are assigned to employees. To set up these entitlements, you create a base entitlement rule and apply it to the quota type for the leave entitlement.

For your absence quota type 30+##, create the base entitlement rule 001 and name it Base Entitlement Leave Group ##. You must set up two subrules to accommodate the different leave entitlements defined by seniority.

Set up the following leave regulation for the employees in your personnel subarea:

  • Employees with 0–5 years’ seniority are entitled to 25 days of leave (quota type 30+##) per year.
  • Employees with more than 5 years’ seniority are entitled to 28 days of leave (quota type 30+##) per year.

Steps

  1. Create a base entitlement rule 001 and call it Base Entitlement Leave Group ##. Create the subrules 001 and 002. Use the calendar year as the period on which the base entitlement is based.

    FieldValue
    Start01/01/1990
    End12/31/9999
    ES grpg (Employee subgroup grouping) for time quotas1
    PS grpg (Personnel subarea grouping) for time quotas01
    Personnel subarea grouping for time recording01
    Absence quota type30+##
    Rule for base entitlement001
    Sequential no.001
    Seniority0–5 years
    Constant25(days)
    Related to periodCalendar year

    1. In Customizing, choose Time Management → Time Data Recording and Administration → Managing Time Accounts Using Attendance/Absence Quotas → Calculating Absence Entitlements → Rules for Generating Absence Quotas → Set Base Entitlements.

    2. In the Choose Activity dialog box, choose Base Entitlement for Absence Quota Generation.

    3. To create new rules for base entitlements, choose the New Entriespushbutton. 

    4. Create a base entitlement rule 001 for the quota type 30+##, leave group ##, and call it Base entitlement leave group ##. You have to create two subrules (001 and 002) because your employees have different base entitlements depending on their level of seniority.

      Base entitlement for employees with 0–5 years’ seniority.

      On the New Entries: Details of Added Entries screen, enter the given data for the first subrule 001.

    5. Save your entries and go back to the overview screen.

      Base entitlement for employees with seniority of more than 5 years.

    6. To create subrule 002, select your entry for quota type 30+## and then choose the Copy As pushbutton.

      Note

      You can choose the position pushbutton and enter ES grouping 1, PS grouping 01 in both fields and Abs. quota type 30+## to find your new entry.

    7. On the Change View Base Entitlement for Absence Quota Generation: Details screen, make the following changes:

      FieldValue
      Sequential no,002
      Seniority5–99 years
      Constant28(days)
      Related to periodCalendar year

    8. Choose Continue to confirm your entries, save your entries, and go back to the Overview screen.

Learning

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