what is the meaning of accrual

[mamajid]

Assalam o Alikum

Can any one tell what exactly is the meaning of accrual w.r.t to HRMS PTO and what is the meaning when oracle says "Employee accrues the time in period" and "Payroll balance for accrual"

Regards

Majid

[eng_ahmad_2007]

Dear Majid,

Accruing the time is when you add and accumulate the days for your accrual plan (annual leave for example).

Accrual Balance is when you want to reset the accrual balance calculation.

I hope this helped,

Best Ragrds,

Ahmad Ghanem

[admin]

Let me explain with an example so you will have the idea of accrual. I will not explain the accounting accrual but will explain accruals in HRMS. Your organization gives 24 annual leaves to the employees. There are two ways one is to let them avail at the start of year and other is distributing 24 on 12 months. If we divide 24/12=2 means each month they can avail or can accrue to next month and increasing their accrued balance.

Open Bal = 0
01-Jan-2010 2
01-Feb-2010 2
So on 1st March accrued balance will be 4 and if he/she availed then that will be deducted from this balance.

Hope now clear. thanks

[mamajid]

Thanks Admin/Ahmed

When i saw the literal meaning of accrual it means "accumulate".
I got confused in oracle documentation using accrual term with different scenarios in PTO accrual plan.

So what i have understood is that an employee can accumulate its unused leaves (which is called accrual of leaves) till the end of payroll calender and, if option available, carry forward his leaves to next payroll calendar year according to the defined rules of Accrual plan. Right..?

Second question is about the accrual band. can you define these columns of accrual band

Years of service
From to Annual Rate Maximum Carry over Ceiling

0 5 15 5 15
5 10 18 8 15
10 99 20 10 15



[quote]Let me explain with an example so you will have the idea of accrual. I will not explain the accounting accrual but will explain accruals in HRMS. Your organization gives 24 annual leaves to the employees. There are two ways one is to let them avail at the start of year and other is distributing 24 on 12 months. If we divide 24/12=2 means each month they can avail or can accrue to next month and increasing their accrued balance.

Open Bal = 0
01-Jan-2010 2
01-Feb-2010 2
So on 1st March accrued balance will be 4 and if he/she availed then that will be deducted from this balance.

Hope now clear. thanks


<i><div align="right">Originally posted by admin