How to setup the Vacation Accrual in Canadian Payroll

Applies to: Dynamics GP 2010Dynamics GP 2013Microsoft Dynamics GP 2015

Regular Vacation example:

SETUP:

Basically, you can accrue in dollars, or units, or both.   The below example is in DOLLARS, but also tells you how to setup units, if you need it.

  1. In the setup (Tools/Setup/Payroll Canada/Control/Control), set the 'Allow Vacation Pay' to yes.  If you are also accruing in units, set the 'Allow Accrue Vacation Units' to yes as well.  You may also choose to mark Allow Vacation Pay Accrual to G/L.   Choose to Accrue Vacation Units in Days or Hours. 
  1.  Go to Tools/setup/Payroll Canada/Income Paycodes. Locate your income code you will be accruing on. Make sure "Vacation pay applicable" is set to yes for all the income codes that you will be accruing on.
  1.  Focus on one employee. Go to Cards/Payroll-Canada/Employee/VacSick tab and be sure the Set Calculate Vacation Pay is set to Yes and a Vacation Pay Percentage is filled in. (If you are only accruing units and no dollars then the percentage can be set to 0.0000%.)  Mark Accrue Vacation Pay to G/L is desired. 
    a.  Notice the Vacation Pay Accrual Flags in this window on how you want vacation accrued.

          

         b.  In order to accrue in “units”, select 'Accrue Vacation by Paycode'  must be marked.
         Then select the Other Options button and set Accrue Vacation Units to yes.    Enter the Standard Paycode, which will ensure when you incraet the rate of this paycode, the Vacation Adm. Gain/Loss will be calculated.  THe Last Vacation Accrual Rate can be left at 0.00000 and will automatically update each time Masters is updated.  Seelct the Vacation Paycode.   

  1. On the employee card, click on the Paycodes tab, and then select the paycodes that will be accrued on.  On the paycode at the employee level, you will need to set how much vacation they will accrue if you are using units(calculated out per 100 units, so 11.66 hours per unit would be listed as 1166.00 or multiplied by 100.)  Also mark if you want vacation units accrued in hours or days .  Salary employees only get ‘1’ unit per payrun.                                                                                                                                                                                    
  2. To view the employee vacation balance, click on the Vacation Tab in the Payroll Employee Setup-Canada window.  You can see the employee below has $100.00 dollars available for vacation.  He is not accruing in units. 

         

Only the top line will be filled in for regular vacation.   The Accruing/Available/Immed. Payout/Available After date/Pays Out After date and Also Accrue into Available checkbox are for Vacation Pooling, which you will most likely not be using.  Vacation Pooling is designed for unionized companies where the concept of vacation pay is available on a certain date (Available After date), and paid out if not taken by a certain date (Pays Out After Date).  You would have to turn on vacation pooling to utilize this feature, but  I don’t hardly see any regular companies use it, so I won’t go into that feature any further. 

 

  1. In the Employee Vac/Sick tab, there is also an option to “Pay Vacation Pay This Period”.  So if you want any accrued vacation to pay out this pay run, mark this option.  This is often used when the employee leaves the company and want their final accrual to pay out.

 

DEMO

  1. So now when I do a payrun for this employee:  

His vacation tab shows he earned $48.  (His vacation is set to 4%.  His income was $1200.)

 (was $100 before payrun)

Income:

Vac % setup:

4% x $1200  = $48  so you can see his vacation is now $48 above.

 

DEMO:

  1.  So now if he takes vacation, you can key a transaction:  I will key 1 unit at $900 to use.

      

  1. After the payrun is completed, you will see he is left with $50.  ($148 available -$98 used)