Termination date falls outside of pay period (NZ)
For back-dated terminations, you need to manually adjust earned and accrued leave units
When an employee's last day of employment is earlier than the pay period start date, this is called a back-dated termination. This causes a warning on the Termination window:
What causes the warning
For all leave types in a back-dated termination, MYOB Acumatica — Payroll doesn't automatically adjust earned and accrued units to reflect the period from the terminated employee's last anniversary date until their termination date.
For example, this can happen if an employee resigns while on parental leave, orif your company' spayroll team hasn't been told about a termination until after an employee leaves.
Correct employee balances by adjusting accrued units
If there hasn't been any annual leave rollover, then the accrued units only affect the values shown on the Entitlement Movements form (MPPP6032) and the overall liabilities remaining on the company journals and general ledgers.
So, before completing the termination pay, you must use the Entitlement Adjustment (MPPP3000) form to ensure only the accrued units match the period from the employee's last anniversary date to their termination date.
Process a one-off pay
When making a final pay for a back-dated termination, you should process it in a one-off pay in the terminated employee's regular pay group.
To avoid issues with overalpping pays, make sure that the pay period start and end dates for the one-off pay match the normal pay period start and end dates.
Understanding the rates for unused annual leave
For back-dated terminations, most leave rates that calculate unused annual leave payments are based on the termination date you select in the Last day of employment field.
However, leave balances, annual leave YTD values, the OWP 8.1 standard rate and OWP special agreed rate aren't based on the last day of employment. Instead, these include the latest rates and payments up to the current open pay that includes the termination payments.