3772076 - How to Credit Vacation Time (Half Day) When Target Hours Are Exceeded

Half-day vacation entry (4 hours) combined with additional recorded working time (altogether exceeding daily target hours) is not correctly reflected in the employee’s time account.

Example: 

• Target hours: 8 / day
• Record:
  • 5 hours of work
  • half-day vacation

Result: Only 8 hours are credited. 4 hours are deducted from vacation account but only 3 would be necessary, so employee lost 1 hour.

SAP Business ByDesign

An employee with 8 hours planned working time (target time) records vacation entry with Half Day duration and 5 hours of work for the same working day.

1. Go to Time Administration work center
2. Go to Employees view
3. Find the employee and select it
4. Select Edit
5. Go to Employee Times tab
6. Select Add Row
7. In the new row, in Start and End dates maintain a day without any time entry (the same date)
8. In Time Type field, select "Actual hours worked"
9. Scroll down and Under General tab, set Duration to 5 hours
10. Add another new row to the time entry table
11. Maintain the same Start and End date
12. In Time Type field, select "Vacation"
13. Scroll down and Under General tab > Time Information section, next to Start and End date fields, select "Half Day"
14. For both new rows in the table of time entries: select the row, and click Actions > Activate

Observe the new time account balances in the Time Account Balances tab in the time file.

• By default, vacation beyond the planned daily working time is not credited as overtime.
• The time profile is not configured to treat the vacation as credited absence and to post the excess to a time account.
• The time type used for recording may not be configured to post against a time account.

Use "Partial Day" vacation, i.e. enter hours manually to reach daily planned working time (target hours) exactly.
If it's not feasible, use this approach to count excess vacation time as overtime in a separate time account:

Overview:

• Ensure the employee has a valid quota account (typically a Time in Lieu account) to count the excess hours
• Configure or create a premium pay type that will post the excess hours
• Configure the Time Profile to consider Vacation time type in overtime calculation, define the overtime threshold, and set premium pay type for time posting (from previous step)

Detailed steps:

1. Maintain Time Account:
If it is feasible to count the portion of the Half Day vacation that exceeds daily target hours in the predefined "Time in lieu for overtime" time account, proceed to the 2. Assign time account section and use that time account when setting the "Time Account Type" field.
If creating a new time account type is preferred, perform these steps:

1. Go to Business Configuration work center
2. Go to Overview view
3. Find and open Activity "Time Accounts - <country>"
4. Choose link "Maintain Time Account Types"
5. Select Add Row under Available Time Account Types
6. In the Code field, enter a short code starting with letter Z
7. In the Time Account Type field, enter a descriptive name
8. Set Category to Quota Account.
9. Set Unit to hour(s)
10. Set Creation to Recurring
11. Set Recurrence to Calendar year, or as per preference
12. In the Details section below, click Add Row
13. Set "Bookable From" to "Start of time account"
14. Set "Bookable To" to "End of time account"
15. Set "Check Limit" to "Fixed Limit"
16. Set Minimum Balance Limit to 0. It is normal that it disappears afterwards
17. Set validity dates
18. Select Save

2. Assign time account
Make sure the quota time account is assigned to the employee in which the overtime from vacation will be counted. To assign it, perform the below steps:

1. Go to Time Administration work center
2. Go to Employees view
3. Find the employee and select it
4. Select Edit
5. Go to Time Profile tab
6. While the time profile is selected (Start Date, End Date), open the Time Account Rules below
7. Select Add Row and add quota account "Time in lieu for overtime" or the new time account defined previously.
8. Select Save

3. Premium Pay:
A Premium Pay type is required to make the posting to the time account. SAP Business ByDesign comes with different predefined premium pay types for most countries.
Configure existing or create new premium pay type to post excess time to the time account from earlier steps:

1. Go to Business Configuration work center
2. Go to Overview view
3. Search and open activity "Premium Pay – <country>"
4. Select "Maintain Premium Pay Type"
5. Select a Premium Pay type with Allocation "Bank All" and a suitable Percentage.
   "Bank All" means the entire overtime will go to a Quota time account, instead of direct payout.
   If a feasible premium pay type is found, select the row and proceed with step 10.
   If creating a new type is preferred, click Add Row
6. In the "Code" column, maintain a short ID starting with letter Z
7. Set the "Percentage" column to control the multiplier for the time posting
8. Set Allocation to Bank All, so the entire overtime will go to a Quota time account
9. Set validity dates
10. In the "Assign Time Account Types" tab below, click Add Row
11. In the "Time Account Type" column, select the time account from section 2. Assign time account
12. Set validity dates
13. Check the "Allowed Administrative Categories" tab
14. Check validity dates of the premium pay type
15. Remember the name of the premium pay type and save changes

4. Time Recording Profile:
Set the time recording profile to credit vacation as overtime using the premium pay:

1. Go to Business Configuration work center
2. Go to Overview view
3. Search and open activity "Time Types – <country>"
4. Select "Maintain Time Recording Profile"
5. Selecting the valid time profile of the employee.
6. Go to Overtime Rules tab
7. Select Add Row
8. In the "Overtime Threshold" tab, select Daily
9. In field "Threshold Value", select the threshold from which time entries will count as overtime
10. In field "Premium Pay", select the premium pay type from section 3. Premium Pay. "All Banked" means the entire overtime will go to a Quota time account
11. Go to "Credited Absences" tab
12. Tick the Credited column for the time type(s) that should be credited as overtime (Vacation)
13. Ensure validity dates are correct (time recording profile here must align with employee’s time profile)
14. Save changes

SAP Community: Recording Overtime with Time Recording Profile in SAP Business ByDesign

KBA 2512272 - Frequently Asked Questions in Time Administration

KBA 3646042 - Employee Recorded Times do not Post in Time Account Balances

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