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TamNguyen
Member Posts: 48 ✭
Is this hours accrued per pay recorded correctly? If not what action should I take, as all payment has been made.
The previous account manager has made this record and I couldn't figure out how did they come up with this figure in hours accrued per pay.
From my understanding we are entitled for 4 weeks annual leave pay which work out at 153 hours and 25 minutes base on Educational Services (PostSecondary Education) Award 2010. The start date and end date is the same only the year are changed and we pay fortnightly. Then, the holiday hours should be:
Holiday hours per pay = 153.416/26= 5.9 hours (rounded)
I am suspecting that they use 160 hours to calculate the holiday hours but that is still not right
Holiday hours per pay = 160/26= 6.15 hours (rounded)
The product I am using is Reckon Account Enterprise
Version 2015
The previous account manager has made this record and I couldn't figure out how did they come up with this figure in hours accrued per pay.
From my understanding we are entitled for 4 weeks annual leave pay which work out at 153 hours and 25 minutes base on Educational Services (PostSecondary Education) Award 2010. The start date and end date is the same only the year are changed and we pay fortnightly. Then, the holiday hours should be:
Holiday hours per pay = 153.416/26= 5.9 hours (rounded)
I am suspecting that they use 160 hours to calculate the holiday hours but that is still not right
Holiday hours per pay = 160/26= 6.15 hours (rounded)
The product I am using is Reckon Account Enterprise
Version 2015
0
Comments

38hr week 5.85(5:51)(152:10), 40hr week 6:10(160:20), 6.15(6:09)(159:54)leaves employees short by 6 minutes which you are not aloud to do. if your not happy paying the extra minutes you can make a manual adjustment under the employee record.0

I am still working around my head to understand what you write here. So basically you mean that 6:20 is not correct but 6:10 and my work out of 6.15 will leave employee 6 minutes less than what they should entitle for at 40 hr week. Is what I understand right?
I still can't understand why the total hours for holiday you have for 38 hr week is different from mine? How did you come up with the 152:10 hours? I work out mine base on0 
Thank you Tim for your response,
I am still working around my head to understand what you write here. So basically you mean that 6:20 is not correct but 6:10 and my work out of 6.15 will leave employee 6 minutes less than what they should entitle for at 40 hr week. Is what I understand right?
I still can't understand why the total hours for holiday you have for 38 hr week is different from mine? How did you come up with the 152:10 hours? I work out mine using annual leave balance calculator by workfair. The date was from 1/07/15 to 1/07/16. So why mine is 153 hours and 25 minutes and your is 152:10 hours? Did I get my date range not right?0 
38hrs x 4 = 152hrs / 26weeks (fortnightly pays) = 5.84615385 hrs, Round Up to 5.85hrs = 5hr 51 minutes x 26weeks = 152 hrs 6minutes not 10 was in a hurry. (152.1 hrs)
The Calculator would be calculating on hours worked in that date range, not qty of pays as reckon account is setup to do. So if you were paying someone out, unless they end their employment on the last day of the pay week, Leave needs to be calculated by hours worked (date range), then manually you need to adjust the employees record before paying them out.1 
Just a note on this, the most accurate way to set it up in Reckon Accounts is set the Accrual Period to 'Every Hour' the accrual rate is 0.07692(0:04:37). Regardless of hours worked each week.
Make Sure you set 'Weekly Hours' ?in the employment information section. This is used to calculate leave.
1 
Thank you Tim for your helpful information, much appreciated0

Hi TamNguyen,
A brief note on leave accrual totals in Reckn Account Business.
Leave hours are stored in hours:minutes:seconds. If you enter a rate or amount as a decimal of an hour RAB will convert it to the nearest second. When you retrieve that amount and have it displayed as a decimal of an hour, RAB will convert its stored hh:mm:ss to a decimal which may be different from the one you entered by a few .00001 places. This provides the first rounding error in leave hour calculations and summations.
Most leave accrual rates are calculated from a simple yearly formula  eg 4 weeks leave in the year. In many cases this amount is reduced to an hourly rate, rounded to 5 decimal places. If you accrue leave on a per pay basis, then it is rounded to 2 decimal places. Another opportunity for rounding errors.
When you calculate leave accumulation during a payrun, the total will be rounded to the nearest second. Another rounding error. The more payruns in the year the more opportunities to accumulate rounding rrors.
At the end of the year it is highly unlikely you will hit the original simple formula exactly. It is an unavoidable outcome from the process of starting from a longrange formula that is reduced to a micro timeframe. The amount of the difference will depend on the amount of rounding involved at each stage and the number of payruns in the year.
It is accepted that accounting programmes will not hit the exact amount determined on a yearly basis because of rounding issues. Your only workaround is that on a regular basis you make a manual adjustment in the Employee's Record for accrued leave hours for the difference.
Hope this explains the rounding process a little better.
regards,
John1 
Thank you John for your detailed and insightful answer. Much appreciated
0
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