Generate PTO Period End Adjustments screen

Use the Generate PTO Period End Adjustments screen to have ProContractor create a general ledger journal entry to properly record paid time off liability. When you generate paid time off period end adjustments, ProContractor does the following:

  • Calculate the projected paid time off amount for each employee by determining the paid time off hours balance for each employee and paid time off combination and multiplying the balance by the employee's accrual rate, adding burden if applicable.

  • Determine the booked paid time off amount by calculating the net paid time off amount accrued and paid for each employee and paid time off combination.

  • Calculate the difference between the booked paid time off amount and the projected paid time off amount.

  • Create a journal entry for the paid time off liability for paid time off rates for which the Create General Ledger Accrual Entry checkbox is selected. You can modify the journal entry using the Create Journal Entry screen. The journal entry adjusts the liability for:

    • The difference in the current accrual rates and prior accrual rates throughout the year.

    • Carryover adjustments that are on or before the period end date.

You should periodically run this process to account for the following situations.

Over the course of time, employee accrual rates may change and affect the liability. ProContractor does not change the liability when accrual rates change. Run the Generate PTO Period End Adjustments process to create a journal entry to adjust the liability.

For example, say Alan accrued paid time off at a rate of $1.00 per hour through June 30. Then starting on July 1, he accrued paid time off at a rate of $2.00 per hour. Since it is common business practice to pay an employee all paid time off hours at the current accrual rate, the liability for Alan's paid time off is understated. Running Generate PTO Period End Adjustments corrects the understated liability.

Employee carryover limits can affect liability. ProContractor tracks carryover limit hours whenever payroll is posted, paid time off carryover factors are changed (in Paid Time Off Rates), or paid time off amounts are adjusted in the Adjust Paid Time Off screen. However, ProContractor does not make general ledger entries to adjust liability amounts for carryover limits. You must run the Generate PTO Period End Adjustments process to create the general ledger entries for the paid time off liabilities.

If you need to modify the journal entry created by this process, use the Create Journal Entry screen.

Note: To open the Generate PTO Period End Adjustments screen, click Financial > Journal > Generate PTO Period End Adjustments in the All Tasks pane.