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OHARU_TM_QUOTAS_004 - Define Recalculation Rules for Absence Quotas

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In this Customizing activity, you define the rules that the system uses recalculate the number of days’ leave to which employees are entitled in the following cases:

• Employees take unpaid leave

• Employees leave the company

The system uses the data in this Customizing activity to recalculate an employee’s leave entitlement in proportion to the number of days for which an employee works in the validity period of the absence quota, for example, a working year.

You can define recalculation rules based on the number of months or days for which employees work.

You have defined the rules that you want the system to use when it reduces quota entitlements in Customizing for Time Management under Managing Time Accounts Using Attendance/Absence Quotas -> Calculating Absence Entitlements -> Rules for Generating Absence Quotas -> Define Rules for Reducing Quota Entitlements.

You have determined whether you want to extend the validity period of absence quotas and check for the employment contract termination of employees in the Customizing activity Determine Default Validity Period of Absence Quotas.

The standard system contains reduction rules that enable you to recalculate an employee’s leave entitlement in line with Russian regulations, as described in this Customizing activity. The standard system contains the following reduction rules:

Reduction Rule	Description
03	Recalculates an employee's leave entitlement in days
The reduction rule has additional, Russia-specific logic to cover cases where you shift the end date of the validity period of an absence quota.
33	Recalculates an employee's leave entitlement in months
The leave entitlement per month is one twelfth (1/12) of the annual absence quota.

For each reduction rule that you use, determine whether you want to recalculate an employee’s leave entitlement based on the number of months or days for which employees work.

Assume that one of your employees starts work on January 1. When you hire the employee, the system generates an absence quota of 28 days for the period from January 1 to December 31 (365 days). However, assume that the employee leaves the company on July 4. Since the employee works only 185 days, he or she is entitled to only 185 days’ worth of the 28 days' leave.

Assume that you want the system to recalculate the employee’s leave entitlement in days. The system multiplies the original number of leave days (28) in the absence quota by the relationship between the number of days that the employee actually works and the number of days that the original absence quota was based on as follows:

28 x (185 / 365) = 14.19178 days

In some cases, employees can also take unpaid leave. Assume that the employee above takes 6 days' unpaid leave from February 27 to March 4. Depending on your settings in the Customizing activity Determine Default Validity Period of Absence Quotas, the system recalculates the leave entitlement for the employee as follows:

• You want the unpaid leave to reduce the employee's leave entitlement (you do not select the Shift Validity Period of Absence Quota checkbox)
  The system deducts the unpaid leave (6 days) from the original validity period of the absence quota (365) and from the actual number of days that the employee works (185).
  The employee is entitled to the following number of days' leave:
  28 x [(185 - 6) / (365 - 6)] = 13.961 days

• You do not want the unpaid leave to affect the employee's leave entitlement (you select the Shift Validity Period of Absence Quota checkbox)
  The system extends the original validity period of the absence quota by the duration of the unpaid leave, that is, from January 1 - December 31 to January 1 - January 6. The number of days that serves as the basis for calculating the employee's leave entitlement remains 365 days. The employee is entitled to the following number of days' leave:
  28 x [185 - 6] / 365) = 13.73151 days

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