Considerations for carryover processing
If your plans have carryover, consider the following scenarios when you run Employee Absence Plan Calculation (LP140):
Calculating carryover when a pay period crosses a plan year
LP140 is typically run with a processing date that aligns with the pay period end date. However, if a pay period crosses a plan year, special processing may be needed at the end of the plan year.
Example:
Reset Date = 01/01/2004
Pay Period = 12/28/03 – 01/03/04
Jeff Marciano has an available balance of 130.00 hours as of 12/27/03. There is a carryover limit on the plan of 100 hours. Jeff has the following event records for usage:
| Date | Usage hours |
| 12/29/03 | 8.00 |
| 12/30/03 | 8.00 |
| 12/31/03 hours | 8.00 |
| 01/02/04 8.00 hours | 8.00 |
Because LP140 determines carryover after all other processing, the following will occur if LP140 is run with a process through date of 1/3/04, which is the pay period end date: The 32.00 hours of usage will be decremented from the 130.00 available hours leaving a balance of 98.00 hours. When carryover is then determined, Jeff's balance of 98.00 hours does not exceed the limit of 100.00 hours, so Jeff does not lose any of the balance.
However, if the 1/2/04 usage hours should not be decremented before the carryover is determined, LP140 will need to be processed with a process though date of 1/1/04 (reset date) first. LP140 will then process 24.00 hours of usage (12/29-12/31/03) leaving an available balance on 1/1/04 of 106.00 hours. Carryover processing will then determine Jeff's balance exceeds the carryover limit of 100.00 and 6.00 hours will be lost leaving an available balance of 100.00 after LP140 is complete. LP140 should be run again (after running LP197 to close the first LP140 job) with a process through date of 1/3/04. The remaining 8.00 hours of usage dated 1/2/04 is then processed leaving an available balance of 92.00 hours.
Another option is to run LP140 through 12/31/2003, close with LP197, then run LP140 through 1/01/2004 for carryover processing only to prevent any other activity from occurring.
Calculating carryover when all the records have not been turned in
Using the above example, consider the following:
Jeff has an additional event record for 8.00 hours of usage dated 12/20/03 that was not recorded by Jeff until the following pay period (1/10/04) after carryover processing for 1/1/04 had occurred. Because the carryover was already calculated before he submitted the additional time, Jeff lost 6.00 hours of the available balance. If Jeff had submitted the hours on time, the 6.00 hours would not have been lost. LP140 would have decremented the 12/20/03 usage of 8.00 hours before determining carryover.
Your organization may need to evaluate whether manual adjustments need to be made to employee balances in situations where the employee lost a portion of the available balance because all event records were not present when the carryover was determined. LP140 does not recalculate carryover or lost available hours or earnings due to carryover limits when late event records for usage are entered or additional accruals are retroactively calculated which then become available with a retroactive date. You make these adjustments with Manual Transactions by Employee (LP70.1) or Manual Transaction Conversion (LP570).
Calculating carryover with carryover amounts that must be used within a certain period of time
Processing retroactive dates may cause year-to-date transaction summaries to appear with ending available balances lower than the carryover limit and beginning and ending carryover balances with amounts other than normally expected.
Your organization may need to evaluate the processing impact for employees who submit event records for usage for a previous plan year once carryover processing has occurred and develop procedures for these situations based on the outcome they wish to achieve.
Illustrating the impact of this using the above example, year-to-date transaction summaries on Employee Transaction Summary Inquiry (LP64.2) for available and carryover would appear as follows after running LP140 as of 1/1/04:
Available Hours
Reset Point: 01/01
| Year | Beginning | Adjustments | Usage | Lost | Ending |
|---|---|---|---|---|---|
| 2003 | 130.00 | 0.00 | 24.00– | 6.00– | 100.00 |
| 2004 | 100.00 | 0.00 | 0.00 | 100.00 |
Carryover Hours
Reset Point: 01/01
| Year | Beginning | Adjustments | Usage | Lost | Ending |
|---|---|---|---|---|---|
| 2003 | 0.00 | 0.00 | 0.00 | 0.00 | |
| 2004 | 0.00 | 100.00 | 0.00 | 100.00 |
Year-to-date transaction summaries on LP64.2 for available and carryover would then appear as follows after running LP140 as of 1/3/04 (to process additional 8.00 hours of usage dated 1/2/04):
Available Hours
Reset Point: 01/01
| Year | Beginning | Adjustments | Usage | Lost | Ending |
|---|---|---|---|---|---|
| 2003 | 130.00 | 0.00 | 24.00– | 6.00– | 100.00 |
| 2004 | 100.00 | 0.00 | 8.00– | 0.00 | 92.00 |
Carryover Hours
Reset Point: 01/01
| Year | Beginning | Adjustments | Usage | Lost | Ending |
|---|---|---|---|---|---|
| 2003 | 0.00 | 0.00 | 24.00– | 6.00– | 100.00 |
| 2004 | 0.00 | 0.00 | 8.00– | 0.00 | 92.00 |
Finally, year-to-date transaction summaries from LP64.2 for available and carryover would then appear as follows after running LP140 as of 1/10/04 (which will include processing the late time record for usage dated 12/20/03):
Available Hours
Reset point: 01/01
| Year | Beginning | Adjustments | Usage | Lost | Ending |
|---|---|---|---|---|---|
| 2003 | 130.00 | 0.00 | 32.00– | 6.00– | 92.00 |
| 2004 | 92.00 | 0.00 | 8.00– | 0.00 | 84.00 |
Carryover
Reset point: 01/01
| Year | Beginning | Adjustments | Usage | Lost | Ending |
|---|---|---|---|---|---|
| 2003 | 0.00 | 0.00 | 8.00– | 0.00 | 8.00– |
| 2004 | 8.00 | 100.00 | 8.00– | 0.00 | 84.00– |