Payroll Vacation & Sick Time Accruals in Dynamics GP

Some people are surprised to learn Dynamics GP Payroll can provide accrual capability for vacation and sick time. With the addition of PTO Manager, you can expand that functionality beyond the basics. Let’s look at the core vacation and sick accrual functionality available in Dynamics GP Payroll. My next post will look at PTO Manager functionality in contrast.

In Dynamics GP Payroll, one primary window deals with the accrual of vacation and sick time per employee.

There are two buckets of time that can be tracked:  vacation and sick. You can use these buckets to track whichever types of time you wish—for example, PTO and personal time. Mark the “Accrue Vacation” or “Accrue Sick” checkboxes as necessary if you wish to accrue either or both buckets of time.

On a side note, you can still use GP to track your vacation and sick balances even if the accrue boxes are unmarked. Simply enter the available amount, which will decrease as transactions are recorded using pay codes set up with the vacation or sick pay types (Setup | Payroll | Pay Code, Cards | Payroll | Pay Code).

After selecting to accrue, Dynamics GP Payroll offers two basic ways to accrue the time:

  • Hours Worked
    • If you accrue by hours worked, you will enter the total number of hours the employee can accrue per year in the “Hours Per Year” field. In this example, we have entered 160 hours. An employee then builds toward that 160 hours as they work. In this example, an employee who works 40 hours in a pay period would accrue 3.07 hours.
    • The formula for accrual would be (hours worked/work hours per year) * hours per year or (40/2080) * 160 = 3.07.
    • It is important to note only pay codes marked to accrue (vacation or sick as applicable) on Cards | Payroll | Pay Code will count towards hours worked in this equation.
  • Set Hours
    • If you accrue by set hours, the field prompt will change to Hours Per Pay Run. Then you can enter the amount the employee accrues per pay run. In this example, there is no math; the employee accrues the set amount for each pay run.

You can choose to be reminded during payroll transaction entry if the employee is exceeding their available balance. Once these settings are entered for an employee—some settings also can default from the Employee Class, Setup | Payroll | Employee Class—the accrual process will happen automatically during payroll check printing and posting.

For more information about vacation and account accruals in Dynamics GP, please contact our Microsoft Dynamics GP support center at gpsupport@bkd.com.

 

3 thoughts on “Payroll Vacation & Sick Time Accruals in Dynamics GP

  1. avatarMona

    Dear Christina
    i want to ask about accrued transactions of gp and if it is available
    i.e
    can i enter transaction for office rent for the coming year although this year isn’t opened and i don’t want to open it ?

    thank you

    1. avatarChristina Phillips

      This post actually has to do with payroll vacation and sick time accruals. If you needed to accrue office rent, you would need to do that with a journal entry in the General Ledger. Thanks!

  2. avatarMaureen Martin

    Christina, I have found your posts of 3/2/12 and 3/14/12 to be very helpful in leading me through the accrual of vacation (and sick) hours. The GP method is going to work for us just fine. Thank you for your instruction!

    Now I’m wondering how I can take those hours and convert them to dollars (according the each employee’s pay rate). I have searched online, haven’t found anything yet. Can you point me to something? Or suggest a method for calculating the accrual in dollars?

    Thanks — Maureen

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