Provision

There is an option of performing an automatic provision incl. absence reversal. Provision reversal always takes place on the next day after posting.

Provisions are set up in Payroll master data -> button ‘Provision'. The four fields Salary code, Balanced, Unit and Salary type are available for customisation:

It is important to store the correct salary types. If they are not yet available, you have to create the salary types. You can commonly do this under ‘Salary types’. Enter a new salary type or copy an existing one.

Example:

Holidays: Salary type 7830 = Holiday provision (type = ‘Employer contributions’, calculation type = ‘positive’)

Overtime: Salary type 7840 = Overtime provision (type = ‘Employer contributions’, calculation type = ‘positive’)

NOTE:

This function is part of SwissSalary PLUS.

Vacation Provision

The following is required for the calculation:

•Vacation entitlement according to Absence Claim and Employment % for the entire year

•Vacation entitlement until the end of the accounting month (vacation entitlement / 365 days * number of days until the end of the accounting month)

•Vacation taken from January 1 or date of hire to the end of the accounting month

•Balance carried forward from the previous year

•Salary rate or Daily rate

Provisions are calculated as follows:
Vacation entitlement until the end of the accounting month, minus vacation taken, plus balance carried forward from the previous year, multiplied by the Salary rate or Daily rate (depending on whether hours or days are specified).

The account assignment and dimensions are taken into account.

Important: The number of vacation days per year used to calculate vacation pay provisions is based on the employee's recorded Absence Claim when calculating wages.
 
Example of vacation allowance at the end of March:
Vacation entitlement for the year: 200 hours (based on Absence Claim)
Calculation of vacation credit by the end of March: 200 hours / 365 days x 90 days (January – March) equals 49.32 hours
Minus vacation taken (January – March) = 40 hours
Plus balance carried forward from the previous year = 20 hours
Provision for January: 49.32 hours – 40 hours (vacation hours) + 20 hours (remaining balance from previous year) = 29.32 hours.
Salary rate CHF 25.00 => 29.32 hours at CHF 25.00 results in a provision of CHF 733.00.

Setup Salary type 1630 Provision for vacation credit
If calculation is to be based on Salary rate-> Rate per Employment % position not active
If calculation is to be based on Daily rate-> Rate per Employment % position active
(Setup on the salary type card-> General tab-> Salary rate field, Rate per employment % position field)

Overtime/flexitime provisions
The balance of overtime and flexitime hours is multiplied by the salary rate stored for the employee and posted as a provision.