Accrual limits

There are three types of limits: taking, earning, and carryover. Taking and earning limits govern balance limits for accruals. Carryover limits govern how accruals can limit the amount of time or money, or both, that can be carried over from one interval to another.

Taking limits control the amounts of time or money that an employee can use, or take, based on accrual balances and company policy. When a taking limit is in effect, paycode edits, group edits, and imports can be disallowed, or can generate a warning.

The time interval for a taking limit can be a rolling time period, seasonal, or based on a date pattern. For example, you can create a taking limit named Seasonal Vacation for retail part-time employees who cannot take more than eight hours of vacation time between November 30 and December 31. For this example, you would limit the amount of vacation that can be taken during a specific range of dates.

For example, an accrual rule for vacation can include a taking limit that specifies that an employee cannot take more than 80 hours of vacation in a one-month interval. When paycode edits exceed the taking limit, either a warning is sent or the paycode edit is disallowed, or both.

Earning limits either limit an accrual balance or limit how the amount of an accrual balance can grow. For example, you can create an earning limit named Vacation Limit that specifies that the total vacation balance cannot exceed 240 hours.

By controlling how the amount of an accrual balance grows, you can specify that the system control the amount of time or money that an employee can take. For example, you can create an earning limit named One Week Limit Maximum that specifies that the amount of annual leave that can accrue within six months is 40 hours. In this example, even if an employee takes a specific number of hours, 40 is the maximum amount that can be earned within six months. This earning limit is referred to as an “earning amount limit.”

Another type of earning limit, cap on earnings - (minus) takings, is used when the actual amount of time an employee can earn is based on the overall time the employee earns and uses.

Carryover limits govern how accruals can limit the amount of time or money, or both, that can be carried over from one interval to another. For example, an accrual rule can include a carryover limit that resets the accrual codes.

Note: The Background Processor automatically generates paycode edits for company holidays. The Accruals component does not validate in this case, because a user has not been identified to whom an overdraft message can be sent. The Background Processor can override the overdraft levels and taking limits with the holiday feature.

To manage limits for accruals, navigate to Administration > Application Setup > Accruals > Limits from the Main Menu. When you create, edit or duplicate limits, use the following fields:

  • Name — The name of the limit. The name must be unique among limits.
  • Limit Type — The type of limit. Select one of the following:
    • Earning Amount Limit — Limits the amount of accrued time or money, regardless of earnings. For example, the amount of annual leave that can accrue within six months is 40 hours. In this example, even if an employee takes a specific number of hours, 40 is the maximum amount that can be earned within six months.
    • Earning Balance Limit — Limits the balance that can be accrued. For example, vacation hours can be limited to 10 hours per month or 120 hours per year.
    • Carryover Limit — Limits the amount of accrued time or money that can be carried beyond the end of the accrual period. For example, employees can carry up to 40 hours of vacation into the next accrual period.
    • Cap on Earning - (minus) Takings — The actual amount of time an employee can earn, based on the overall time the employee earns and uses.
  • Taking Limit — Control the amounts of time or money that an employee can use, or take, based on the employee's accrual balances and company policy.
  • Check Limit over a seasonal time period — The system checks the accrual balance over a seasonal time period from one date to another date, such as from December 1 to December 31.
  • Check Limit continuously over a rolling time period — The system checks the accrual balance continuously over the previous days, weeks, months, years, or pay periods, such as continuously over the previous four pay periods.
  • Check Limit on date pattern — The system checks the accrual balance at times specified by a predefined date pattern, such as a monthly date pattern.