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Sometimes it is not easy to decide how to create different time off accounts because of different logic for countries and customer specific requirements. This guide should help you to understand and present to the customer relevant information to do the right decisions. Let's start with some basics of Time off.


Time off can cover three different types of absence:

  1. Long term leave - e.g. maternity/parental leave

  2. Short term leave - e.g. sickness/unpaid leave/training

  3. Leave with time account - e.g. holidays


Today we cover only number 3 - time off with time account as this is typically complex and most important part of the time off implementation.


What are the options for the holidays?

  • Permanent time account

  • Account with future posting


Annual posting Monthly posting Permanent account
Advantage Disadvantage Advantage Disadvantage Advantage Disadvantage
Employees can see whole year allowance Employee can ask for more holiday in advance Only limited days are allowed to get in advance Allowance is accrued on monthly basis and employees can see only current month allowance (or by changing effective date) Based on legal law and used in small amount of countries (Australia, USA etc.) Employees cannot take holidays in advance as no negative balance is allowed
Cannot make any rule changes during the year (e.g. based on seniority) Always simple to understand for employees as they can see only what can get

I will make updates of this table according to your feedback and future experience


Permanent time account is typically used when you have holiday allowance based on time worked. E.g. In Australia you get each day that you worked some holiday allowance. The accrual rule is then set on daily basis and amount posted is 24/365 (24 is number of holidays for whole year).

Employees get each day some amount and they can take only the number of days that is on their account. There is no negative balance allowance and they cannot take more days off than is available on their account.


The Hire rule - need only basic configuration and posting = 0, this will only create time account without posting

The Accrual Rule - this is most import in this configuration as we need to populate each day specific amount of Holiday allowance

The Period end processing rule is not needed in this scenario. We created permanent account that will be still open and filled each day. E.g. if employee won't take any holiday during the year it will transfer all remaining days to next year and will be able to take it anytime in the future.

The Termination Rule is not needed as we don't remove any days from the account when the employee is terminated. We will also keep populating the permanent account as the employee is getting holidays according to days worked.


Account with future posting is typically used in Europe where you give the employee some holiday allowance in advance and can take holidays during the year. Let's do two different examples. First example is with annual posting and second one is based on monthly posting. Annual posting


The Hire rule - is important in this case, we should populate the amount of the days to the employees' accounts. We need to check how many month is employee employed this year and set balance according to number of planned month working. The example is annual posting using the lookup table as we don't use automatic rounding.

The accrual rule for this scenario just post defined amount of days each year/month. No special logic needed.

Period end processing rule - this rule contains logic what happen at the year end. How many days will be transferred to the next year balance and what else will happen. There is closing previous year account and transferring 0 or negative number of remaining days to be available next year.

Termination rule is one of the most complicated and it must be done according to the legal requirements. E.g. in Czech republic all employees that start in the middle of month and ended employment in middle of other month aren't eligible to get holidays for these two months (only full months are calculated).

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