Starting from the November 2014 payroll, we have a new requirement from Boeing in relation to the vacation forfeiture reflection in the AR4. There are situations when the unused vacation balances lapses either due to over accumulation than the defined limit in Boeing pay practice, or due to being carried forward over the defined limit of number of years. Currently these lapsed vacations are not shown in the AR4 and we just reduce the employee's vacation balance manually under the Vacation Balance (V81) column.
This kind of situations may or may not have arose in your country till now, but whenever such situations arise in future, you need to reflect the number of lapsed vacations under a new column V86 with description as “Vacation Forfeiture” just before the Vacation Balance column.
Example #1: An employee has 12 days at the end of year and will only carry over 10.
The 2 day loss does not currently show on the AR4.
When the component code for vacation forfeiture is added, this will now show on the AR4 and we will be able to trace the vacation forfeiture on the AR4.
Example #2: An employee is only allowed up to 2 years of vacation or 24 days and is earning 1 day per month.
If they have reached 24 days, on the AR4 we would now show 1 day accrued and 1 day forfeited so the balance would not increase but we would be able to see why the employee did not actually earn any more vacation if we were to run reports just for the vacation balances.
We hope the new requirement is clear to you. Incase you have any questions or doubts, please feel free to write us.