The system will then do the same process for class 2 salaries, class 3 salaries, etc. until all employee classes have been accounted for. The first step in General Ledger\Monthly Processing\Cost Allocation is Leave Cost Allocation which generates the Leave Rate Computation and Analysis. This report provides you with the calculation and leave rates as described above.
There are two items set up in the software that will have an effect on the leave rate(s) and how they are calculated. They are (1) whether or not you accrue the cost of certain leave types when they are earned, and (2) how your base is defined.
1. If you expense all leave when it is taken, the leave cost to your organization will simply be those leave costs recorded on the timesheets. If your personnel policies allow for unused leave to be paid out upon termination, typically Annual Leave or Paid Time Off, that leave liability is normally charged when earned. In this case, in addition to the leave taken charges, the system will take into account the increase or decrease in the amount of the liability of the specific leave type(s) you are expensing when earned.
2. When defining the Leave Base in the software, in addition to regular time you may also include Overtime and/or Compensatory time earned in that base period.
Of course, when setting up the allocation items you must make sure you are doing so in accordance with your organization’s policies and procedures.