Pay at Accrued Rate allows you to process payment for Leave Types at the rate it was accrued at.
This can be utilised if your Award/Agreement specifies that certain leave is to be paid at the accrued rate when working different roles.
To configure and pay your employees using this method please read the entire article and follow the below steps.
Accrual Types
Check Pay at Accrued Rate
Add Adjustment Pay Item if required
Award Policy
Specify any leave payment award clauses to process at Accrued Rate drop down.
When processing the payment: depending on the Balancing Order set on the Accrual type, it will use either the oldest or newest accrual to process payment. Outstanding Accrual Buckets can be seen in the Accrual History tab on the Employee record.
In the case you allow the Accrual Type to go into a negative balance, when there are no further accrual buckets to consume it will process at the employees Pay Policy Rate. This is not reversed upon a positive accrual amount processing: when the payments and accruals are out of sync it is handled in the accrual adjustment processor.
An accrual adjustment will occur automatically if the cash balance is in a positive amount, but the units are negative at the end of a pay period. If the situation occurs during a pay run but by the end of the pay period, the cash balance is positive, and the units are positive no adjustments will occur.
This is worked by taking the current cash balance dividing it by the current pay policies rate to work out the new units.
This is controlled by the Adjustment Pay Item on the Accrual Type. If this is not specified, this automatic adjustment process will be disabled.
Important Information
In order to maintain the integrity of the accrual Buckets, manual adjustments of the rate are not permitted.
Pay at the Accrued Rate stores information differently to other accrual types and once turned on it cannot be turned off. A new accrual type would need to be added if the Pay at Accrued Rate behavior needs to change.