Vacation handling - Calculation of average capacity level (and paid vacation days) Introduction

There are different ways of calculating vacation payment. In all white color agreements for salaried and

some collective agreements for Blue color monthly the vacation payment is based on an average capacity

level for the accrual year. This average capacity level is then multiplied by the actual basic pay for the period

vacation is paid in order both to adjust vacation payments and vacation supplements.

For most collective agreements for Blue colors the average capacity level is also used for paying lowest

vacation payments by adjusting lowest vacation payment per day by this average capacity level. This

adjusted lowest vacation payment per vacation day is then compared with the calculated vacation payment

per day of the Employee and if applicable an adjusted payment up to the lowest vacation payment will be

paid.

In SAP the calculation of average capacity level is done within Payroll in personnel calculation rule SURL for

each payroll period and the result is stored accrual year by accrual year in a table called VACS (Vacation

Sweden) as a part of the Payroll cluster. This table VACS could contain up to 8 rows where each row

corresponds to a vacation quota according to following table (quotas containing days) :

Row no Quota Year 1 29 0 2 30 -1 3 31 -2 4 32 -3 5 33 -4 6 34 -5 7 35 -6 8 36 -7

For customers with accrual year equals to deduction year there is no split between row 1 and 2.

In addition non-eligible absence part of day could reduce the average capacity level. These non-eligible

absence parts of day is created within Time evaluation and transported to Payroll as wage type MS02 within

table ZL in the Time cluster.

In SAP Payroll table VACS is read in personnel calculation rule SVAC and valuation basis are created.

Functionality is governed by features

23VCS – Start date for enhanced calculation of average capacity level stored in table VACS

23VPM – Governs calculation method for average capacity level stored in table VACS

23VAE – Governs that only Employment period where the Employee accrual vacation days will be taken into account when calculating average capacity level stored in table VACS (start date of this functionality will be governed by a new feature 23xxx)

Swedish specific schemas/rules involved in Time Evaluation “SEM0” – Time Evaluation for Work Schedule Deviations (Template Sweden). This Time Evaluation schema should be extended to deliver a Swedish Specific Time Evaluation schema within standard.

Schema / Sub-schema Text PCR

SEVA Adjust accrued vacation if more than 180 sickness days in vac year

SEV0 (this rule is used to initialize time types SE01, SE02, SE03 and SE04)

SEVC (this rule counts the number of calendar days so far during the accrual year)

SEV1 (The rule check if the limit of 180 sickness days (calendar days) within a vacation year has been reached. Depending on the status a sub-rule SEV2 is called

- The rule counts absence days (eligible and non-eligible)

- This rule also reset the year counter in case that there is non-absence day

SEV4 (Trigger a retro from start of month in case of initialization) (created 22.2.2012)

SQV0 Rolling of vacation quotas

SQV6 (Avoid Vacation Quota Rounding)

SEN1 (Identifying Eligible and Non-eligible Absences. This rule separates the entries in TIP table into Eligible and Non-Eligible Absences based on the time type SE03 value. If it is set to 1 then system considers it as non-eligible absence and other wise as eligible. The rule changes the Processing type of the TIP entry. Processing type 5 for Eligible and Processing type 6 for non-eligible.

This is used for absence hours counters MS01 (type 5) and MS02 (type 6)

SQV1 (Check if end of the vacation year) Check month and day, if e g 31.03. then return true

SQV2 (Check if it’s the start-up year with different handling of saved vacation days). If YES then SQV5 (transfer of old vacation days) is processed otherwise SQV3 (Rolling of quotas for change of vacation year) is processed. In sub-rule to SQV3, rule SQV4 (Rolling of quotas for change of vacation year). Rule SQV7 as sub-rule of SQV4 is not used any more.

Used for calculation for variable vacation payment Vacation Variable pay = payment for vacation based on bonuses during whole year (see detailed description below).

SVR7 This rule retrieves the number of days (last date of the month) in Quota 27(29) from Time Cluster B2 and stores the same in “Curr Month Vac Accrual wage type (/392). The same goes for retrieve the number of days from Quota 30 and store the same in “Base entitlem.”

- - SEV4 (Trigger a retro from start of month in case of initialization) (created 22.2.2012). This rule is now obsolete.

- - SMO1 (Change modifier for change of vacation year) (old rule from year 2000) These rule is obsolete

- - SHOR (Reduce holiday pay) This rule is not used in any of our “internal” schema. Can it be deleted?

Within Private sector time types are used in order to reduce the number of accrual paid vacation

days. Following time types exists within standard:

SE01 – Counter of eligible absence days

SE02 – Counter of non-eligible full day absence (days that reduces the vacation quotas)

SE03 – Flag set to 1 when SE01 reaches 180 days

SE04 – counter of calendar days within the accrual year

SE05 – Flag set to 1 when SE02 + SE01 reaches 365 days.

Time types are counted within time evaluation, subschema SEVA. In note 1590081 time type SE05

“Sickness counter for year” was introduced based on the fact that continuous sickness is only

eligible for the first year + 1. When time type SE05 has reached limit of eligible sickness then time

type SE03 is set to “1” which means than sickness will no longer be eligible.

In order to calculate average capacity level following wage types are created within Time Evaluation:

MS01 – eligible absence in hours (used for hourly paid)

MS02 – non eligible absence part-of-day

MS03 – worked hours (used for hourly paid)

MS04 – planned working hours

Absence quotas:

The general time evaluation program RPTIME00 calculates the accrued paid vacation days also considering the non-eligible absences and hence the reductions are made. The vacation entitlement is then split between Paid vacation (quota 30) and unpaid vacation (quota 40). The result is then stored as quota types in info type 2006. Private sector: Accrual year before deduction year: Quota 29 and 27 are accrued daily, Q30 is created from Quota 29 - Q27 (rounded value upwards). Accrual year equals to deduction year: Quota 29 is accrued daily Q30 is accrued monthly. Base entitlement is reduced during quota accrual. Reduction consists of following parts:

- Inactive days (Standard)

Reduction for inactive days is done by standard reduction rule 23 (Inactive days)

- non-eligible absence (Swedish specific)

o Private sector: based on counter SE02

Non-eligible absence reduction of quotas are based on counters SE02 and SE03

o Public sector: based on customizing in tables T5SAM_CE, T5SAW_CE, T5SAL_CE

- non-accruing period based on feature 23VAE (Swedish specific)

Non-accruing period reduction is based on Function module “HR_SE_VACATION_ELIGIBILITY” and

feature 23VAE

Example accrual of Q30 with vacation entitlement = 30 when accrual year equals deduction year:

Employee hired from 1.1.2014 then he leaves 4.2, rehired 10.2

Eligible absence from 6.1.2014 which turns to non-eligible at 12.1.2014 until 24.1.2014

EE is not accruing quotas from 17.1.2014 till 1.2.2014 (due to settings of “contract” in feature 23VAE)

As a result quota will be reduced for days 12.1. – 1.2. and 4.2. – 9.2. 2014

In case that Base Entitlement was 30 days, the final quota will be:

Daily acccrual = 30/365, Reduce days = 27(according to column days reducing quotas), Final quota = 30 –

(Daily accrual x Reduce days)

Quota 30 = 30 – (30/365 x 27) = 28

Base Period

of quota

EE Active Non - accruing

period

(23VAE)

Days Reducing

quota

1.1.2014

2.1.2014

3.1.2014

4.1.2014

5.1.2014

6.1.2014

7.1.2014

8.1.2014

9.1.2014

10.1.2014

11.1.2014

12.1.2014 SE03=1 X

13.1.2014 X

14.1.2014 X

15.1.2014 X

16.1.2014 X

17.1.2014 X

18.1.2014 X

19.1.2014 X

20.1.2014 X

21.1.2014 X

22.1.2014 X

23.1.2014 X

24.1.2014 X

25.1.2014 X

26.1.2014 X

27.1.2014 X

28.1.2014 X

29.1.2014 X

30.1.2014 X

31.1.2014 X

1.2.2014 X

2.2.2014

3.2.2014

4.2.2014 X

5.2.2014 X

6.2.2014 X

7.2.2014 X

8.2.2014 X

9.2.2014 X

10.2.2014

11.2.2014

12.2.2014

Private sector

N

SE01

SE02A

N

A

A

A

Absence

counters SExx

Base Period

of quota

EE Active Eligible

absence

Non - accruing

period

(23VAE)

Days Reducing

quota

1.1.2014

2.1.2014

3.1.2014

4.1.2014

5.1.2014

6.1.2014

7.1.2014

8.1.2014

9.1.2014

10.1.2014

11.1.2014

12.1.2014 X

13.1.2014 X

14.1.2014 X

15.1.2014 X

16.1.2014 X

17.1.2014 X

18.1.2014 X

19.1.2014 X

20.1.2014 X

21.1.2014 X

22.1.2014 X

23.1.2014 X

24.1.2014 X

25.1.2014 X

26.1.2014 X

27.1.2014 X

28.1.2014 X

29.1.2014 X

30.1.2014 X

31.1.2014 X

1.2.2014 X

2.2.2014

3.2.2014

4.2.2014 X

5.2.2014 X

6.2.2014 X

7.2.2014 X

8.2.2014 X

9.2.2014 X

10.2.2014

11.2.2014

12.2.2014

A

N

A

Public Sector

A

N

A

E

N

Calculation of average capacity level in table VACS

The new functionality of average capacity level is governed by feature 23VCS. This new functionality should only be started at a new accrual year; e g 01-04-2014 or 01-04-2015 (01-01-2014 or 01-01-2015). Please note:

Calculation of average capacity level is within standard template split into three ways depending on the Employee subgroup grouping “Abart”;

o Hourly (Abart = 1) is using calculation method weighted by days within the year. o Monthly paid (Abart = 2) is using calculation method weighted by days within the month.

The average capacity level is a summarized capacity level of all months divided by number of months.

o Salaried (Abart = 3) is using calculation method weighted by days within the month. The average capacity level is a summarized capacity level of all months divided by number of months.

o If there is a split in the middle of month between hourly paid and monthly paid/salaried and vice versa this month will be calculated according to both methods.

o

o

In SYSYA the ABARTs are hardcoded to 1 and 2 (so it will process the ABART 1 always “hourly” weighted by days and ABART 2 always weighted by months. In SSYST there is no check for ABART so it will process whatever it will be called for. SSYST always use utilization based on BSGRD and monthly weighted calculation.

Calculation based on “Abart”, as stated above, is overridden by new feature 23VPM where following fields could be used as selection criteria: Employee subgroup, Payroll Area, Personnel Area, Personnel Subarea and Company code. When activating feature 23VPM also Payroll schema personnel calculation rule SURL needs to be changed where both SSYSA and SSYST should be replaced by operation SVCGP. Operation SVCGP needs to be run only once, no matter how many abarts are used within one period. This mean that the rule needs to be called without parameters that is not with parameter “AR” as it was with the “SSYSA” and “SSYST”. Operation SVCGP will replace SSYSA and SSYST but the all these operations will still co-exist for a couple of years. By switching to operation SVCGP the customer will have the opportunity to e g apply the calculation method for hourly paid for also monthly paid. Operation SVCGP has no parameters

Where SUURL is responsible for handling the vacation year start and end. It creates new line in

VACS table ans adjust the start and finish date. It is based on tha base period of the quota in parameter. SUURL30M SVCGP (without split into Abart 1,2 and 3), In addition the personnel calculation rule should be changed in the payroll schema SURL from: to:

SURL 002 ACTIO SURL AR SURL 002 ACTIO SURL (with no “AR” as parameter 2)

Only Employment periods with accrual of paid vacation days (according to Master data) are taken into account in the calculations below. Which type of Employment that accrual paid vacation days needs to be stated in feature 23VAE (Contract Type in IT-0016). By SAP-note 2052284 customers could use other fields than only contract type in info type 16 like Company code, Personnel Area, Personnel Subarea, Employee Group, Employee Subgroup, Legal Person. Yes, accruing of the vacation can be switched on/off by change of any of the mentioned fields, but it must generate separate WPBP split.

For monthly paid / salaried all months will be counted that contains at least one day of Employment (workday or eligible absence day)

In order to calculate average capacity level we store following information in wage type /CUL and table VACS:

o Wage type /CUL: Number (technical name ANZHL) contains average capacity level for hourly paid

(Daily weighted). This capacity level could be more than 100% but in table VACS this value will be maximized to 100%.

Rate (technical name BETPE) contains average capacity level for monthly paid/salaried (Monthly weighted). This capacity level has not been reduced by non-eligible absence part of day.

Amount (technical name BETRG) contains the number of month to be counted for monthly paid/salaried (months for Monthly weighted)

o VACS-table: Number (technical name NOENT) contains the number of Employment days for

Hourly paid reduced by non-eligible absence full day (days for Daily weighted) Utilization (technical name UTIL) contains the final average capacity level to be

used for vacation calculation. (limited to 100% and Monthly weighted part is reduced by non-eligible part time absence)

Hourly paid (Payroll function SSYSA) Formula (Worked hours + eligible absence hours) / (Yearly planned hours * prorated accrual days) wt MS03 + wt MS01 / (constant PLNHR(511K)* (days of employment /365(366))

NB! Days of employment is reduced by non-eligible full time absence

Example of an hourly paid after 3 months of Employment: Formula: 152+176+152 / (1796 * 91/366) = 1.0749

Monthly paid (Payroll function SSYSA) – At many customers function SSYST is used instead Formula:

1. Capacity level = Weekly working hours of EE / weekly working hours for a full timer Weekly working hours IT-7 / constant ARBEA (T511K)

2. If weekly working hours been changed during the month then capacity level is prorated ((weekly hours period 1 / days of the month) + (weekly hours period 2 / days of the month)) / calendar days of the month

This information is stored in wage type /CUL 3. The number of non-eligible full days (SE02) governs if the month should be counted or not 4. Calculate the average capacity level by dividing the summarized capacity level each month / number

of months. 5. If the number of non-eligible part time absence hours (wt MS02) so far during the accrual year

exceeds 83 hours (constant ABNMH (T511K) then the cumulated average capacity level will be reduced according to the formula: Non eligible absence hours part of day / (planned working hours year to date of the Employee *100 / divided by the average capacity level)

Salaried (Payroll function SSYST) Formula:

1. Capacity level = Capacity utilization level in IT-8

2. If capacity utilization level been changed during the month then capacity level is prorated ((capacity level period 1 / days of the month) + (capacity level period 2 / days of the month)) / calendar days of the month

This information is stored in wage type /CUL 3. The number of non-eligible full days (SE02) governs if the month should be counted or not 4. Calculate the average capacity level by dividing the summarized capacity level each month / number

of months. 5. If the number of non-eligible part time absence hours (wt MS02(IKEA: 9S09)) so far during the

accrual year exceeds 83 hours (constant ABNMH (T511K) then the cumulated average capacity level will be reduced according to the formula: Non eligible absence hours part of day / (planned working hours year to date of the Employee *100 / divided by the average capacity level)

Switch between hourly paid and monthly paid/salaried (and vice versa) When switching method from daily based to monthly based following weighting will be used in order to calculate average capacity level properly for the whole accrual period:

o Monthly accrual will be converted into days by multiplying number of month with monthly accrual as a monthly paid / salaried with 30,5 (this is the average number of days in the month according to the formula 365/12)

Example 1:

An Employee works 6 months as hourly paid and 1 month as salaried.

6 months as an hourly paid corresponds to 182 Employment days with an average capacity level of 50% (this percentage is calculated according the formula for hourly paid)

1 month as a salaried with an average capacity level of 100% The average capacity level for these 7 months will be according the formula: (50%* 182 + (100% * 30,5) / 212,5 = 57.18%

Example 2:

An Employee works 5.5 months as hourly paid and 1.5 month as salaried.

5.5 months as an hourly paid corresponds to 166 Employment days with an average capacity level of 50% (this percentage is calculated according the formula for hourly paid)

1.5 month as a salaried with an average capacity level of 100% (since the Employee accruals paid vacation days on both sides of the split, both periods are included in the calculation below).

The average capacity level for these 7 months will be according the formula: ((50%* 166) + (2 * 100% * 30,5)) / 227 = 63.43%

Example 3:

An Employee works 5 months as hourly paid and 2 months as salaried.

5 months as an hourly paid corresponds to 151 Employment days with an average capacity level of 50% (this percentage is calculated according the formula for hourly paid)

2 months as a salaried with an average capacity level of 100% (since the Employee accruals paid vacation days on both sides of the split, both periods are included in the calculation below).

The average capacity level for these 7 months will be according the formula: ((50%* 151) + (2 * 100% * 30,5)) / 212 = 71.23%

Example 4: An Employee with following utilization:

April: hourly => 113,81% May: hourly => 110,13% Jun: monthly paid => 86,67 July: monthly paid => 80,84 August: monthly paid => 78,09 September: monthly paid => 71,07 Overall utilization at the end of September : 84,69%

Month VACS /CUL

util noent ANZHL BETRG BETPE

04 100,00 30,00 113,81 0 0,00

05 100,00 61,00 111,94 0 0,00

06 100,00 61,00 111,94 1 86,67

07 96,39 61,00 111,94 2 80,84

08 91,63 61,00 111,94 3 78,09

09 84,69 61,00 111,94 4 71,07