Current State
When an employee is terminated, the user needs to manually reset vacation balances.
When the balances are reset, the next payroll run includes a specific usage transaction, aka “cashout”, that pays-out the balance in Payroll.
Balance-cashout process is semi-manual and error prone.
Improvement
Added a new option in Absence configuration (ABCNF) for automatic cash-out upon employee termination.
Employee termination can be done by using “De-activate” from CoreHR or by changing “Employment End” date from CoreHR / Master Adapter / API.
When enabled:
- Period calculation will create a specific ABSTRX record with the current balance value for the selected Absence codes, e.g., Paid Vacation.
- Timecard reports will display the ABSTRX record.
Activation Settings
Absences – Configuration
Setup > Absences > Absences – Configuration
VacationBuyOut
New Parameters:
- Enable Buyout
(SYSEXT2.[CASH_OUT])
Values = Yes / No (Default)
When enabled, ABSTRX transaction will be generated upon employee termination.
At least one absence code should be selected from the list.
- Absence Codes in use
(SYSEXT2.[CASH_CODES])
Specify a list of absence codes that should be reset upon employee termination.
E.g., Paid Vacation and Personal Time Off.
Other absence codes will not be reset.
- Buyout Abstrx Justification Code
(SYSEXT2.[CASH_REASON])
Use a dedicated justification code for Buyout.
The Justification code will be used for payroll export.
Period calculation
Period calculation will create the selected Buyout Abstrx Justification Code.
When the balance is > 0, the usage = Balance value (Positive) to be paid out in employee’s salary.
When the balance is < 0, the usage = Balance value (Negative) to be deducted from employee’s salary.
When the balance is = 0, no ABSTRX transaction will be created.
User Operation
Examples
- Absence Codes in use = (2) Vacation in Days, (6) Sickness in Hours, (16) Recreation in Days
- Buyout Abstrx Justification Code = (1007) Cashed Out
Scenario | Result | |
1 | Future date – Next PP: | Transaction will be created |
2 | Future date > Future PP: | The transaction will be created when the future PP arrives |
3 | Current date: The user enters a termination date in the current PP | Transaction will be created |
4 | Previous PP date The user enters termination date on previous PP | The transaction will be created ONLY if the user |
Scenario 1
Future date – Next PP
Current PP – November 2024
Balance for 30/11/2024:
(2) Vacation = 5.75 Days
(6) Sickness = (-3.54) Hours
(16) Recreation = 0 Days
Setup > Absences > Benefit Accruals Browser
Employee 1 – Pay Period Type (5) Calendar
De-activation date = 01/12/2024
PP Summary for Next PP - December 2024
Balance for 31/12/2024:
(2) Vacation = 0 Days, Usage = 5.75 Days with Justification Code 1007
(6) Sickness = 0 Hours, Usage = (-3.54) Hours with Justification Code 1007
(16) Recreation = 0 Days, No Justification Code 1007
Scenario 2
Future date – Future PP
Current PP – November 2024
Balance for 31/03/2025:
(2) Vacation = 0 Days
(6) Sickness = 1.115 Hours
(16) Recreation = (-0.50) Days
Employee 1 – Pay Period Type (5) Calendar
“Employment End” date = 01/04/2025
PP Summary for Future PP - April 2025
Balance for 30/04/2025:
(2) Vacation = 0 Days, No Justification Code 1007
(6) Sickness = 0 Hours, Usage = 1.15 Hours with Justification Code 1007
(16) Recreation = 0 Days, Usage = (-0.50) Days with Justification Code 1007
Scenario 3
Current PP
Current PP – November 2024
Balance for 31/10/2024:
(2) Vacation = 0.75 Days
(6) Sickness = (-3.55) Hours
(16) Recreation = 0 Days
Employee 1 – Pay Period Type (5) Calendar
“Employment End” date = 30/11/2024
PP Summary for Current PP - November 2024
Balance for 30/11/2024:
(2) Vacation = 0 Days, Usage = 1.75 Days with Justification Code 1007
(6) Sickness = 0 Hours, Usage = (-3.55) Hours with Justification Code 1007
(16) Recreation = 0 Days, No Justification Code 1007
Scenario 4
Previous PP
Current PP – November 2024
Balance for 20/10/2024:
(2) Vacation = (-3) Days
(6) Sickness = 4.30 Hours
(16) Recreation = 0 Days
Employee 23 – Pay Period Type (4) Close 20th
“Employment End” date = 20/09/2024
PP Summary for Previous PP - September 2024
Balance for 20/09/2024:
(2) Vacation = 0 Days, Usage = (-2.84) Days with Justification Code 1007
(6) Sickness = 0 Hours, Usage = 11.37 Hours with Justification Code 1007
(16) Recreation = 0 Days, Usage = 0.72 Days with Justification Code 1007
Employee termination
Employee termination can be done by changing “Employment End” date from CoreHR / Master Adapter / API.
Master Adapter
API
Reports
These reports show BuyOut transactions for the selected period:
- Standard TimeCard – RPERIOD5
- TimeCard (Standard+ Audit Trail) – RPER5AT
- Detailed TimeCard – RPERIOD6
- Detailed TimeCard (Extended) – RPER6EXT
- Weekly Summary Report – RP6WEEK
E.g., Report for Period 2024-11 shows BuyOut transactions when they exist in the same Abstrx period.
Reports Graphs > Pay-Period Summary Reports > TK – Pay-Period Summary Reports >
Standard TimeCard – RPERIOD5
Payroll Implementation
Implementation is needed for exporting to payroll the vacation buyout in TableQ.
In the following screenshot, Justification code 8920 is used for buyout:
When the vacation buyout is negative, the vacation buyout may go to a different pay code in payroll (TableQ).
TRX_EX _D(EMPLOYEE->EMPLOYEE,PERIOD->PERIOD_KEY,2,1,0,1007)
TRX_EX _H(EMPLOYEE->EMPLOYEE,PERIOD->PERIOD_KEY,6,1,0,1007)