General Ledger Leave Provisions

The General Ledger Leave provisions export function is used to export an amount to accounting software to meet an anticipated leave liability. The first time the export is performed, the total liability to date will be exported. On subsequent exports, only the liability which has accumulated since the last export will be provided for. The types of leave provided for can include any accrued leave type, or for the non-accrued leave types RDO accrual and Flextime.

Performing a GL Leave Provisions Export.

ClosedStep 1: Configure the leave types to export

You may export 5 pre-defined leave types (annual, personal and long service leave, RDO accrual and Flextime) and any customised other leave types you may have defined.

  1. From the Navigator go to Payroll | Payroll Framework | Pay Items. 
  2. Select either leave accrual pay items or leave non-accrual pay items, depending on the leave type you are configuring.
  3. Double click the required pay item on the right to edit it.
  4. Click the GL Provisions tab. Complete the following information as required:
Option Explanation
Post provisions to GL?: Tick this box to include this item in a leave provisions export.
Apply oncost % loading: If you wish to add an oncost percentage to the leave liability, enter the percentage rate here. For example, you may wish to provide for leave loading payable on annual leave.
GL debit code: If you want to post the liability as a debit item, enter the code here. GL provisions will normally be posted as both a debit and a credit. If you are using a fixed general ledger code, enter the entire code. If you wish to use the GL structure, enter only the portion of the G/L code which represents the pay item. See the section on pay item general ledger settings for more information on fixed codes versus structured G/L codes.
Use GL structure: Select this option if you will be using the G/L structure for this general ledger code. You will see the code reflected in the example of your current definition.
GL credit code: If you want to post the liability as a credit item, enter the code here. G/L provisions will normally be posted as both a debit and a credit. If you are using a fixed general ledger code, enter the entire code. If you wish to use the G/L structure, enter only the portion of the GL code which represents the pay item. See the section on pay item general ledger settings for more information on fixed codes versus structured G/L codes.
Use GL structure: Tick this option if you will be using the G/L structure for this general ledger code. You will see the code reflected in the example of your current definition.
Define structure: Click this if you need to define or modify a general ledger account code structure. Note that this structure applies to the entire general ledger function, not just leave provisions.
ClosedStep 2: Configure long service leave posting options

You may specify the number of years' service before long service leave is posted. For example, some companies do not provide for long service leave for employees with less than 5 years service.

You may also choose to post a standard or double accrual for employees who have passed their 5th anniversary.

  1. From the navigator go to Company | Maintain company.
  2. Click on the Company Name on the left then click General Ledger on the right.
  3. In the section for Long Service Provisions, configure the posting options.
  4. Complete the following information as required:
Option Explanation
Years service before L/S leave is posted: Enter the number of years after which long service leave is to be provided for employees. For example, enter 5 in this box to post long service provisions only for employees who have completed 5 full years' service with the company. Enter 0 to post provisions for all employees, regardless of the term of service.
Standard posting method: The standard posting method posts the difference between a) the last long service leave provision which was posted and b) the current long service leave provision at the time of posting. For example, if an employee's long service entitlement was 280 hours at last export, and 283 for the current export, then only 3 hours will be exported.
Double accrual method: The double accrual method posts a double LSL accrual amount for each posting performed between 5 and 10 years' service. This method is used in conjunction with the years' service setting above. It spreads the LSL accrual over the 5 to 10 year period, rather than posting one lump sum as soon as the employee reaches their 5 year anniversary. If you are using this setting, you must also complete the next field, hours accrued per week.
Hours accrued per week at double accrual rate: When using the double accrual method, enter double the standard hours LSL accrued per week. For example, if an employee would normally accrue 0.6333 hours long service per week, enter 1.2666 in this field. At the time of exporting, you may specify the number of weeks you wish to provide for.
ClosedStep 3: Verify the setup using the GL provisions framework report

The GL provisions framework report gives an overview of the codes you have defined for posting of leave provisions. This report can be found in System Reports | Framework Listings | General Ledger Leave Provisions.

ClosedStep 4: Perform a leave provisions export

The first time a leave provision export is performed, the entire leave liability will be provided for. On subsequent exports, those provisions for the latest increments in leave liabilities are exported. The system calculates:

    + total current leave liabilities for all non-terminated employees
    - total provision figures generated up to and including the previous provision export
    = current provision figures exported
  1. From the navigator go to Payroll | Payroll Framework | General Ledger.
  2. Double-click the GL provision export node.
  3. At step 1 of the GL provision export wizard, select to generate a new GL leave provision file.
  4. Click Next to proceed.
  5. Step 2 is used to generate the provision figures.
  6. Complete the following information as required:
Option Explanation
Run number: The system will assign a unique run number to each set of provisions generated. Note that this is not related to the payrun run number.
Export Date: Enter the date which you want to assign to the set of provisions. This date is a label only and does not affect the value of the provisions export.
Description: Enter a description for this run, which will identify the run if re-exporting.
Long service double accrual method: If you are using the double accrual method for provision of long service leave, you must select the payruns to include in this export. To do this, select the hyperlink click here to select the week numbers. In the pop-up window, highlight the payrun(s) to include in the provision export (hold the Ctrl key while clicking to select multiples, or use sorting and grouping to arrange the payruns for easier selection).

The double accrual method allows you to select zero (0) weeks when posting. This allows multiple provision export runs to be performed within the same month without exporting long service provision amounts multiple times. The system will display a warning when you enter zero. Contact the HR3 team if unsure of your selection

  1. When you are ready, click Generate Provisions to calculate the provision figures.
  2. Step 3 is used to create the file which will be imported into your accounting software.
  3. Complete the following information as required:
Option Explanation
Period 1-13: This applies to Pastel GL exports only. Select the period you wish to export.
Include department as job code: Select this option to include the department code as a job code in the export file. This will always default to no (unticked).
Export type: Select your accounting software from the drop down list. The export file created will be compatible with the selected type.
Posting date: Enter the date of posting. This is a label only and does not affect the provision calculation. The system defaults to today's date, but you can override this if required.
Filename: Click in this field to see the default file name. The file will be created automatically in your working folder. You can override the default settings if required.
  1. Click execute to create the export file, which can then be imported into your accounting software.
ClosedStep 5: Report on a leave provisions export

Three GL provision reports are available which report on the actual figures exported per provision run. These reports can be found in System Reports | Historical | General Ledger.

ClosedStep 6: Re-exporting previous provisions

Each time you export a set of leave provision figures, the export is saved for future reference, enabling you to re-export it as needed.

  1. From the navigator go to Payroll | Payroll Framework | General Ledger.
  2. Double-click the GL Provision Export node.
  3. At step 1 of the GL Provision Export Wizard, select to re-export a previously generated file.
  4. Click Next to proceed.
  5. Step 2 displays a list of all previous provisions which have been generated in this company, together with the date of export and an optional description. Select the provision to re-export.
  6. Complete the following information as required:
Option Explanation
Provision no.: This is the provision run number which was assigned to this provision transaction at the time of creation.
Description: This will display any description which was entered at the time the provision run was created.
Posting: This is the date the provision file was created for posting to the general ledger.
Company: This is the company to which the provision run belongs.
  1. Click next to proceed.
  2. Step 3 is used to re-create the file for export.
  3. Complete the following information as required:
Option Explanation
Period 1-13: This applies to Pastel GL exports only. Select the period you wish to export.
Include department as job code: Select this option to include the department code as a job code in the export file. This will always default to no (unticked).
Export type: Select your accounting software from the drop down list. The export file created will be compatible with the selected type.
Posting date: Enter the date of posting. The system defaults to today's date, but you can override this if required.
Filename: Click in this field to see the default file name. The file will be automatically created in your working folder. You can override the default settings if required.
  1. Click Execute to create the export file. The export file can now be imported into your accounting software.

Delete processed general ledger provision transactions

As part of payroll's housekeeping functions, you can delete general ledger provision transactions which have already been processed and sent to your accounting software. To do this:

  1. From the Navigator go to Tools | Housekeeping. On the left highlight the General Ledger Provisions node.
  2. Enter the period end date of the latest transactions you wish to delete.
  3. Click Execute.
  4. The system will remove all transactions with a period end date prior to the nominated date.