Manage Monthly Provisions

We are thrilled to announce the addition of a new page, “Manage Monthly Provisions”. Through this new page, you can now view your monthly provisions history, calculate monthly provisions, and seamlessly send them to your active financial integration.

TABLE OF CONTENTS



How to Access the Manage Provisions Page


To access the new page "Manage Monthly Provisions," follow the steps below:


Go to the Main Menu → Payroll → Manage Monthly Provisions


The new page includes a data table that presents a comprehensive history of monthly provisions for employees. The table will also include essential details such as employee names, hiring dates, and respective monthly provision amounts.




How to Use the Monthly Provisions Page 


The Manage Monthly Provisions page includes multi-select checkboxes. These checkboxes allow users to select the desired provision amounts to delete, send to active financial integrations (if applicable), or export as journal entries to Excel sheets (if applicable).


Note: This page includes all provisions calculated through the payroll run, generated through the provisions report, and provisions calculated directly on this page.


Once any of the checkboxes are selected, the related buttons listed below will appear:


  • “Send to Active Financial Integration” - This button allows you to send journal entries for provisions. You can activate it by following these steps:



  • “Export Journal Entries” - This button allows you to export your provisions journal entries. You can activate it by following these steps:

  • Activate the option Activate journal entries exporter in the Journal Entries Structure.



  • “Delete” -  This button allows you to delete existing provision records. To prevent the deletion of sent provisions, you can activate the option "Prevent deletion of all sent transactions" in the Journal Entries Structure. To ensure data accuracy, please be aware that you can only delete the most recent provision record for each employee. Deleting older records may lead to data discrepancies and impact the calculations as they are based on historical data.

    

    



Note: The option to prevent deletion of all sent transactions can only be applied to newly calculated provisions through the new Manage Monthly Provisions page and does not affect the old existing data. 



Manage Monthly Provisions Filters

To find the data you’re looking for, click on “Filters”.



How to Calculate Monthly Provisions 


If you would like to calculate monthly provisions, follow these steps: 


  1. Click on the "Calculate" button.

  2. A slider will appear, then select the month for which you want to calculate provisions. The "From" and "To" dates will be automatically selected based on the cut-off dates defined in your payroll setup. 

Note: These dates are view-only and provided for reference purposes.

  1. In the "Employees" drop-down list, choose specific employees or an organizational level you want to calculate provisions for. If no employees are selected, provisions will be calculated for the entire branch.

  2. Use the "Work type" drop-down to calculate provisions for a specific work type only.

  3. If applicable, use the "STB type" drop-down to select the type to be used for the calculation of STB provisions. If left unselected, the default STB type defined in the system preferences for each employee's contract type will be used in the calculation,  in the “End of Employment”  category. 

  4. In the "Contract type" drop-down, you can choose to calculate the provision amount only for employees with the selected contract type.



Note: For optimal results, you should calculate your monthly provisions chronologically. When calculating the first month, the total amount will be calculated for the month prior.

If there are any gaps in the calculation, the total amount will still be automatically calculated for the month prior to the calculation month. 



Note: This page includes all provisions that are calculated through the payroll run (if applicable), generated through the provisions report, as well as provisions calculated directly on this page.


How Monthly Provisions Are Calculated


Monthly provisions are calculated up until the payroll cut-off date of each month. 

To set up your cut-off date, go to the User menu → System Preferences → Financial Setup → Payroll Setup 



Vacation Compensation Monthly Provisions:


The equation used for calculating Vacation Compensation Monthly Provisions is as follows:


Total Provision Amount of Vacation Compensation on Provision Month

- Total Provision Amount of Vacation Compensation on Previous Month
________________________________________________________

= Total Vacation Compensation Monthly Provisions 


  • Total Provision Amount of Vacation Compensation on Provision Month: (Employee’s Total Salary ÷ Vacation Compensation Base x Employee’s Annual Vacation Balance on the cut-off date of the provisions month)


  • Total Provision Amount of Vacation Compensation on Previous Month: (Employee’s Total Salary ÷ Vacation Compensation Base x Employee’s Annual Vacation Balance on the cut-off date of the previous month)


  • Employee’s Total Salary: 
    (Employee’s Basic Salary + Employee’s Total Allowances)


  • Vacation Compensation Base: This is the monthly calculation base for vacation compensation.

    • You can set the Vacation Compensation Base by going to the User menu → System Preferences → Financial Setup → Payroll Setup and scrolling to the Vacation Compensation Calculation Section. 

  • Select your preferred calculation base from the drop-down menu labeled "Vacation calculation base".



Service Termination Benefits (STB) Provisions:


The equation used for calculating STB monthly provision is as follows:


Total STB Provision Amount of Provision Month 

- Total STBl Provision Amount of Previous Month

________________________________________________________

= Total STB Monthly Provision


Further Breakdown:


  • STB Total Provision Amount on Provision Month: This represents the amount of STB the employee would be entitled to if they were to be terminated on the cut-off date of the selected provision month. Essentially, it calculates the estimated benefits the employee would receive if they were to leave the company at the end of the selected month.

  • STB Provision Amount on Previous Month: This represents the amount of STB the employee would have been entitled to if they were terminated on the cut-off date of the previous month. It calculates the estimated benefits for the previous month.


  • By taking the difference between these two values, we can understand the changes in benefits entitlement from one month to another. 


Airticket Monthly Provisions:


The equation for calculating monthly air ticket provisions is as follows: 


(No. of applicable beneficiaries + 1 employee) ✖ Amount ✖ Quantity ÷ Recurring Every) 


Amount: This refers to the amount set up in the Air ticket Policy setup.


Quantity: This refers to the number of air tickets included in the Air ticket policy.


Recurring Every: This refers to the recurrence interval specified in the Air ticket policy.


You can set up the “Amount”, “Quantity” & “Recurring Every” by navigating to the User menu → System Preferences → Financial Setup → Air Ticket Policies

  • Click on the “+Add” button or on “Edit” beside an existing Air ticket policy.




To add beneficiaries to an Air ticket policy, you can do so by following these steps: 

  • In the Air Ticket Policy Setup, click on “Add Beneficiary Setup”.

  • Define the Relation type & the Deduction percentage. 


  • Go to the Employee’s profile and click on “Air Ticket Allowances”.

  • Click on “+Add” and select the Air ticket policy you would like to add for the employee.



  • Add the family members (beneficiaries) to the employee’s profile by clicking on the Family info tab and filling in the needed information.


Extra Salary Provisions:


The equation used for calculating extra salary monthly provisions is as follows:


Extra Salary Total Provision Amount on Provision Month 
- Extra Salary Total Provision Amount on Previous Month

________________________________________________________

= Total Extra Salary Monthly Provisions


  • Extra Salary Total Provision Amount on Provision Month: This represents the amount of extra salary the employee would be entitled to if they were to be terminated on the cut-off date of the selected provision month. Essentially, it calculates the estimated benefits the employee would receive if they were to leave the company at the end of the selected month.


  • Extra Salary Provision Amount on Previous Month: This represents the amount of extra salary the employee would have been entitled to if they were terminated on the cut-off date of the previous month. It calculates the estimated benefits for the previous month.


  • By taking the difference between these two values, we can understand the changes in benefits entitlement from one month to another. 



Sending Monthly Provisions to an Active Financial Integration


You can now send your monthly provisions to your active financial integration separately from payroll easily through this new page. 


However, if you’d like your monthly provisions to be included with payroll Journal Entries, you will need to send them along with payroll journal entries only on the "Manage Salaries" page. You will not be able to do this on the new page.


  • Sending Monthly Provisions Separately from Payroll: 

In order to send your monthly provisions separately from payroll, you will need to do the following: 


  • Go to User menu → System Preferences → Integration Setup → Journal Entries Structure.

  • Check the option Calculate employees' provisions.

  • Uncheck the option Auto-generate journal entries for employees' provisions.

  • Select how you would like your Provisions Journal Entries to be generated. 


  •  Use the checkboxes in the Manage Monthly Provisions page to select the provisions you want to send to your financial integration and click on the “Send” button.


  • Sending Monthly Provisions With Payroll Journal Entries: 

In order to send your monthly provisions with payroll journals, you will need to do the following: 

  • Go to User menu → System Preferences → Integration Setup → Journal Entries Structure.

  • Check the option Calculate employees' provisions.

  • Check the option Auto-generate journal entries for employees' provisions.

  • Select how you would like your Provisions Journal Entries to be generated. 


  • Through the Manage Salaries page, calculate the salary slips.

  • Click on “Show Filters” and select the Month and Year of salaries you would like to send the journal entries for.

  • Use the checkboxes to select the salaries containing the provisions you would like to send.

  • Click on the “Send” button on the Manage Salaries page.



Exporting Monthly Provisions as Excel Sheets


If you would like to export your provisions’ journal entries as Excel sheets, you can easily do so, depending on your journal entries structure setup. If you calculate your provisions separately from payroll, you can use this page. However, if you include your provisions with payroll journal entries, you will be able to export them through the Manage Salaries page.


  • Exporting Journal Entries for Provisions Separately from Payroll: 

In order to export your monthly provisions separately from payroll, you will need to do the following: 


  • Go to User menu → System Preferences → Integration Setup → Journal Entries Structure.

  • Check the option Calculate employees' provisions.

  • Uncheck the option Auto-generate journal entries for employees' provisions.

  • Select how you would like your Provisions Journal Entries to be generated. 

  • Check the option Activate journal entries exporter in the Journal Entries Structure.

  •  Use the checkboxes to select the provisions you want to export and click on the “Export Journal Entries” button.


  • Exporting Journal Entries for Provisions included with Payroll Journal Entries: 


In order to export monthly provision journals that are included with payroll journals, you will need to do the following: 

  • Go to User menu → System Preferences → Integration Setup → Journal Entries Structure.

  • Check the option Calculate employees' provisions.

  • Check the option Auto-generate journal entries for employees' provisions.

  • Select how you would like your Provisions Journal Entries to be generated.

  • Check the option Activate journal entries exporter in the Journal Entries Structure.


  • Through the Manage Salaries page, calculate the salary slips if you have not already.

  • Use the checkboxes to select the salaries containing the provisions you would like to export.

  • Click on Show Filters and select the Month and Year of salaries you would like to export journal entries for.

  • Click on the “Export Journal Entries” button on the Manage Salaries page.

        


Monthly Provisions Details

If you click “View” in the actions column, you will be able to view the details of each provision record.