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Administrator Guide
Last Updated: 2025-05-16
Create Accruals

Create Accruals

Security:
Set Up: Time Off (Calculations - Absence Specific)
 domain in the Time Off and Leave functional area.
Define accruals for use in time off plans that track balances. An accrual specifies the accrual amount, when workers receive accruals, and other rules. If an accrual has eligibility requirements, a frequency, or limits that differ from the time off plan, you can define requirements specific to the accrual.
When an accrual is associated with a position-based time off plan, limits are based on position. While it's typical to base the accrual calculation and eligibility rules on position, you can instead define rules that reference a worker's primary position or all positions.
  1. Access the
    Create Accrual
     task.
  2. Name the accrual and enter an identifying code for web services.
  3. (Optional) Set up the accrual from which workers can buy time off:
    1. Select the
      Allow to Buy Time Off
       check box.
      You can’t edit this check box after the accrual is created. You can either set up an accrual for buying or as a regular accrual.
    2. Enter a value in the
      Buy Time Off Display Name
       field.
      Workday displays the value in the
      Type of Time Off
       prompt on the
      Buy Time Off
       task. If the field is blank, Workday displays the
      Accrual Name
      . We recommend you enter the same value as the time off that users see when they request time off.
  4. Define the accrual
    Calculation
    .
    As you complete the task, consider:
    Option Description
    Calculation
    Select the calculation that returns the number of hours or days workers receive with each accrual. You can select:
    • A constant value. Example: 12 hours or 0.5 days.
    • A calculation based on a service rate table.
    • Any other type of calculation.
    When you use the accrual in a day-based plan, specify a daily unit of time, such as 0.5 (days), not 4 (hours). When you use the accrual in an hourly plan, enter an hourly unit of time, such as 4 (hours), not 0.5 (days). Workday doesn't automatically convert hours to days or days to hours.
    When you use the accrual for buying, by selecting the
    Allow to Buy Time Off
     check box, the calculation is automatically set to
    0
    , and the field is not editable. An accrual configured for buying won't add to the time off plan balance unless the worker buys time off against it.
    Priority
    Set a priority for processing the accrual. Enter a unique value. Accrual priorities determine their processing order, which is particularly important if they occur on the same date and contribute to the same time off plan.
    Example:
    Vacation
     has a priority of 1 and
    Sick Time
     has a priority of 10. If both accruals occur on the period end date, Workday adds the
    Vacation
     accrual to the balance first.
    Adjustments/Overrides Allowed
    Enable adjustments and overrides for workers' absence accruals.
    If the accrual has a different
    Accrual Frequency Method
     value than the time off plan, then add an override on the
    Time Off Plan Overrides
     tab.
    Options
    Specify an accrual type:
    • Front-Loaded
      : Workers receive front-loaded accruals up front, at the beginning of the balance period, rather than in increments throughout the balance period. You can't use front-loaded accruals with position-based time off plans.
      To ensure that front-loaded accruals accrue in the first period of the balance period, use either of these scheduling options:
      • Add 1 of these scheduling rules to the accrual:
        • Scheduling: Front-Loaded
        • Scheduling: Annual - 1st Period of year (based on Period End Date) or Mid-Period Hire or Termination
      • Add the accrual to a time off plan with a year-to-date (YTD) period schedule and accrual frequency method of
        Start of Period
        . If you use this option, you don't need to add scheduling rules to the accrual.
    • Based on As of Date
      : Workers can receive accruals at the start of or end of the period schedule. The accrual value can change during the period if a worker gains or loses eligibility to the accrual itself or calculations within the accrual resolve differently. Workday prorates the accrual based on the As Of date of the change. You can't use Based on As of Date accruals with position-based time off plans.
      Scheduling is optional for this accrual type if you add an
      Automated Accrual Adjustment
       Service step after the
      Completion
       step to the
      Change Job
       business process.
      For
      Accrual Frequency Method
      , select
      Start of Period
       or
      End of Period
      .
    • None
      : The accrual doesn't have any special proration behavior and operates according to the start or end date of the period.
    You can't change the
    Front-Loaded
     or
    Based on As Of Date
     options after the accrual is in use. However, you can change from
    None
     to either of these options if there are no adjustments or overrides for the accrual on the
    Maintain Accrual and Time Off Adjustments/Overrides
     task.
    When you use the accrual for buying, by selecting the
    Allow to Buy Time Off
     check box, the
    Options
     field is automatically set to
    None
    , and the field is not editable.
    Rounding
    Select a rounding definition to apply to front-loaded or as-of-date accrual calculations. Workday applies the rounding as part of the
    Automated Accrual Adjustment
     service step on the
    Change Job
     business process. Example:
    Round to nearest 0.1
    .
    Selecting a rounding definition can eliminate the need to further adjust the accrual results.
  5. If you use Workday Time Tracking, select
    Time Calculation Tags
     for the accrual calculation to reference. If you select:
    • More than 1 tag in a row, all time blocks must have the tags to be in this calculation.
    • Tags in separate rows, all time blocks must have tags in at least 1 row to be in this calculation.
  6. Select the
    Scheduling
     rule that determines when workers receive the accrual.
    Example: You might select a rule that makes floating holiday hours accrue only in the first month of the year.
    You can combine multiple scheduling rules in the same row or insert a separate row for each rule. A worker must meet all criteria specified in the same row. If you define criteria in separate rows, a worker must satisfy the criteria in at least 1 row. Based-on-as-of-date accruals don't need a scheduling rule.
  7. (Optional) On the
    Time Off Plan Overrides
     tab, complete the
    Accrual Frequency Override
     section if this accrual frequency differs from the accrual frequency of the time off plan. As you complete this task, consider:
    Option Description
    Accrual Frequency Method
    Specifies when to add the accrual to a worker's plan balance. Select 1 of these options:
    • Start of Period
      : before subtracting time off.
      Workers might reach upper limits sooner and lower limits later than if Workday processes the accruals after the time off.
    • End of Period
      : after subtracting time off.
    • Custom Frequency
      : based on the date calculation you define in the next 4 fields.
    When you use the accrual for buying, by selecting the
    Allow to Buy Time Off
     check box, you must select either
    Start of Period
     or
    End of Period
    .
    First Accrual Date
    Applies to accruals with a custom frequency.
    Select the calculation that returns the first date of the accrual, such as
    Worker: Hire Date
     or
    Worker: Time Off Service Date
    , or create your own date calculation to return this date.
    Examples:
    • Create a date increment/decrement calculation that returns a worker's hire date plus 30 days. (The hire date falls on the 31st day of the month and the next month has fewer than 30 days. The accrual occurs on the last day of the month.)
    • Pause an accrual if a worker has an approved time off either on their hire anniversary date or a number of days before or after the date. Use the
      Number of Days to Pause an Accrual
       to specify both the number of days either side of their anniversary and the days to pause the accrual.
    • Delay annual time off accruals to the next available working day for workers who are absent on the day of their annual accrual and the day before. Select the
      Accrual Date Paused if Worker is Absent
       instance value calculation (IVC). If you select this IVC, don't enter accrual recurs values in the next 2 fields.
    Workers must still meet scheduling criteria for the accrual to occur on this date.
    Accrual Recurs Every
    Applies to accruals with a custom frequency.
    Enter the number of recurring units of time (days or months) after the first accrual date when the accrual is to occur.
    Example: Enter
    1
     if the accrual is to occur every month on the anniversary of the first accrual date.
    Accrual Recurs Unit of Time
    Applies to accruals with a custom frequency.
    Specify if the recurrence interval represents
    Days
     or
    Months
    .
    Number of Days to Pause an Accrual
    Applies to accruals with a custom frequency. Only available when
    First Accrual Date
     is
    Pause Accrual for Related Time Off Events
    .
    Enter the number of days to pause the accrual if a worker is absent for a defined period before or after their seniority anniversary occurs.
  8. Complete the
    Worker Eligibility Override
     section if the eligibility criteria for this accrual differs from the worker eligibility criteria defined for the time off plan.
    The eligibility rules on this tab override rules defined at the time off plan level. If you don't define rules here, the accrual automatically inherits the rules associated with the time off plan.
    When adding rules on this tab, consider that:
    • You need to add the same eligibility rules that are already configured on the time off plan (if any), and any additional rules that make the eligibility for the accrual unique.
    • All workers are eligible for the accrual if there are no eligibility criteria on the plan or the accrual.
    • Workers must satisfy all criteria specified in the same row.
    • If you define criteria in separate rows, workers must satisfy the criteria in at least 1 row.
  9. Use the
    Limit Override
     fields to define an upper accrual limit if different from the upper limit defined for the plan.
    Workday automatically reduces the accrual for any calculation period by the balance amount that exceeds the limit and displays the forfeited accrual on Workday pages and reports.
    In addition to accrual limits, these parameters can impact worker accruals:
    • The accrual processing order (defined by the accrual priority).
    • The timing of accrual processing (defined by the time off plan).
    Option Description
    Value
    Select the calculation rule that returns the maximum number of days or hours workers can accumulate in the time off plan balance.
    When a worker buys time off, the value is the limit that the time off balance shouldn't exceed.
    Based On
    Select the time off plan that includes the accrual. Workday displays the plan balance period.
    Exception: If defining an accrual for an accrue-as-you-go plan, select the accrual itself.
  10. Configure the
    Expiration Override
     section so that time off can expire relative to the date that it was accrued.
    You can also configure expiration on accruals for time off plans with carry over limits and expiration, however, expiring accruals will be exempt from these carry over rules.
    As you complete this task, consider:
    Option Description
    Amount of Time Before Expiration
    Select a constant value or a calculation for the number of days or months after the accrual date that accrual units expire.
    Once saved, this field may be required and you can't remove it.
    Unit of Time Before Expiration
    Select
    Days
     or
    Months
     as the unit of time for measuring the expiration date.
    Once saved, this field may be required and you can't remove it.
    Include Prior Balance Period Accruals in Upper Limit Calculation
    Select if expiring accrual should be included in time off plan balance upper limit calculations across balance periods.
    You may not be able to remove expiration from an accrual once saved. Before saving, review Concept: Accrual Expiration.
  11. (Optional) On the
    Buy Options
     tab, define the options for workers to buy time off.
    As you complete this task, consider:
    Option Description
    Available to Buy During
    Select when workers can buy time off:
    • Anytime
      . Workers can buy time off any time during the balance period.
      From the
      Balance Updated in Period
       prompt, select when the balance is updated:
      • Current Period
        . The balance is updated in the same period when the worker buys time off.
      • Next Period
        . The balance is updated in the next period after worker buys time off.
      The start and end payroll adjustment dates are automatically calculated based on the buy event. Workday sets the start payroll adjustments date to the most recent of these 2 dates: the date when the buy event is submitted or the date when the time off balance is updated. The end date for payroll adjustments is set to 1 year after the start date for payroll adjustments.
    • Fixed Period
      . Workers can buy time off based on a buy schedule.
      You must select a schedule for buying time off from the
      Buy Schedule
       prompt. Buy schedules are only available for workers to select if they have the same period schedule as the time off plan that the accrual is linked to.
    Maximum Limit to Buy
    Select a calculation to define the limit of time offs that a worker can buy.
    From the
    Maximum Limit Applies to
     prompt, consider whether you want workers to buy time off at any time or multiple times throughout the year based on the buy schedule:
    • Period in which balance is updated
      . Workers can buy up to the maximum limit for each period that the balance is updated.
    • Balance Period
      . Workers can buy up to the maximum limit for the entire balance period.
    Allowable Increments to Buy
    Select a calculation to define the increments or multiples of time offs that workers can buy.
    Pay Rate for Adjustments
    Select the pay rate to be used for the payroll adjustments:
    • At the start of first pay adjustment
      . Workday uses the worker’s pay rate at the start of the first pay adjustment period for all pay periods. This is fixed.
    • Current rate during each pay period
      . Workday uses the worker’s pay rate for each pay period. This could vary if the worker’s pay rate changes in a pay period.
    • When time off was purchased
      . Workday uses the worker’s pay rate at the time when they purchased time off for all pay periods. This is fixed.
Limiting Sick Time Accrual to 40 Hours
The Paid Time Off plan, which includes accruals for
Vacation
 and
Sick Time
, has an upper accrual limit of 120 hours. You want to limit sick time accrual to 40.
On the
Time Off Plan Overrides
 tab, specify:
  • Value
    :
    40 hours
  • Based On
    :
    Paid Time Off
When calculating a worker's accrual for
Sick Time
, Workday compares the worker's plan balance to the 40-hour limit. If the plan balance exceeds 40 hours, it reduces the accrual by the number of hours over the limit.
Overriding the Accrual Frequency Method
According to the time off policy of your organization, workers accrue 12 hours of paid time off on:
  • The hire date.
  • Each monthly anniversary of the hire date for the first calendar year of employment.
After that, they receive their entire accrual at the start of the year. You are in the process of setting up the Paid Time Off plan. It has an
Accrual Frequency Method
 of
Start of Period
. The plan has 2 accruals:
  • Paid Time Off Accrual - After First Calendar Year of Employment
    Because this accrual has the same frequency as the plan, no
    Accrual Frequency Override
     instructions are necessary.
  • Paid Time Off Accrual - First Calendar Year of Employment
    This accrual occurs at a different frequency from the plan, so you enter these instructions for the
    Accrual Frequency Override
    :
    • Accrual Frequency Method
      :
      Custom
    • First Accrual Date
      :
      Worker: Hire Date
    • Accrual Recurs Every
      :
      1
    • Accrual Recurs Unit of Time
      :
      Months
  • Add accruals to time off plans.
  • Determine which time off plan an accrual is associated with by checking the
    Usage
     tab for the accrual.
  • Access these reports to verify that you configured accruals correctly:
    • Calculation Exception Audit
    • Evaluate Absence Calculation