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Settle time and vacation balances upon resignation

Use Close Balance to reduce vacation and time balances to defined remaining values and create a payroll run of type Closing. Payroll professionals use the report during the resignation process after the last posted payroll run and, if needed, after the monetary settlement in the final payroll. The report doesn't replace the payment.

Wichtig

Close Balance doesn't calculate a financial payment. You manage monetary settlement of outstanding vacation or time through Balance Settlement upon Termination and the final payroll. For more information, see Process resignations, reentries, and additional payments.

Prerequisites

  • The allocation group has a unique filter.
  • The last payroll run is posted.
  • Vacation and time have been posted continuously, and the balances are current.
  • You have checked the required month ending date and permitted posting period.

Close balances

  1. Make sure that all payroll runs—for a year-end closing, those of the previous year—are completely processed and posted. Also check that the general ledger, cost accounting (BBA), and job journals are posted.
  2. Open the Close Balance report.
  3. Filter by Allocation Group and, if needed, by Employee No..
  4. Select the Month Ending Date. SwissSalary sets it to the end of the month.
  5. For each time type, specify whether to close positive, negative, or all balances.
  6. For each time type, enter the positive Limit that must remain. Without a limit, the hour balances are set to 0.
  7. Start processing.

You can definitively close the following balances as of the month-end date:

  • Vacation
  • Overtime
  • Mandatory overtime (rarely used)
  • Voluntary overtime (rarely used)
  • Compensatory time
  • Flexible working hours
  • Working time
  • Night work
  • Scheduled time
  • Actual time

For this purpose, SwissSalary creates fictitious salary entries with the relevant balance type. The Salary Type No. remains blank.

We recommend that you close the working time, scheduled time, and actual time balances (working time calendar) at year-end so that these balances are back to zero on January 1 of the new year. You can also run Close Balance during the year.

Wichtig

The report immediately creates a closing payroll run and salary entries. It isn't a preview and can't be posted as a normal final payroll.

Because it's a payroll run, you must also post it definitively. Before posting, make sure that all general ledger, cost accounting (BBA), and job journals are empty. Posting doesn't write any data to the general ledger, cost accounting (BBA), or jobs.

Check the result

  1. Open the Account Statement report for the affected employees. You can also check the closed balances in the employees' Salary Entries and on the Statistics tab of the Employee Card.
  2. Check that the correct number of hours or days was closed for each time type.
  3. Compare the remaining values with the balances on the Employee Card.
  4. Check the generated payroll run of type Closing for completeness.
Tipp

First calculate a financial settlement separately in the final payroll. Run Close Balance only after you know which remaining values must continue to exist as balances.

Good to know

  • You interpret Close Balance as a payment—only fictitious entries without a salary type are created. Net pay remains unchanged, and the employee receives no money.
  • You start the report as if it were a preview—the closing run and entries are created immediately and are no longer for viewing only.
  • You don't apply a unique allocation group filter—the balances of the wrong employees are closed.
  • You close balances while the last payroll run is still unposted or the balances are outdated—the closing and final payroll don't match.
  • You confuse financial settlement with balance closing—money is paid while balances remain outstanding, or vice versa.

See also