Budget & Finance Knowledge Base - How to Understand Vacation Accounting Transactions in UCPath

Overview

UCPath is used as the system of record for tracking absence entitlements, takes and the maintenance of related balances; it is also used as a tool to create leave assessment (expense) transactions in order to fund Location- managed leave liability pools and to direct expenses related to employees’ vacation usage or terminal vacation payout to these same pools. The costs of accrued vacation leave are included in the Vacation Leave Assessment rates.

Critical Concepts

Vacation Accounting Transactions appear on two tabs of the Labor Ledger DOPES Report:

Fringe Tab
Salary Tab

Vacation Accounting Principle		Vacation Accounting Posting
Vacation is a benefit until it is used	→	Vacation Accrual Expenses (Assessments) show on the Fringe Tab
When vacation is used, it becomes salary	→	Vacation Usage Expenses show on the Salary Tab
When vacation is used, dept. is reimbursed by the Vacation Liability Pool	→	Vacation Reimbursements show as credits on the Fringe Tab

Vacation Leave Assessment

DOPE Report - Fringe Detail Tab

Each pay period, fund sources are assessed the cost of vacation accrual for employees with eligible earn codes.

Use the Job Aid: Earnings Code Configuration in combination with the UCPath Earn Codes List to understand the configuration for UCPath earnings codes. The UCPath Earn Codes List is available in UCPath under Quicklinks > Payroll Configuration Codes > UCPath Earn Codes List.

These expenses appear in the Fringe Detail Tab of the Labor Ledger DOPE report:

Fringe CCOA Account Code: 508300
Fringe CCOA Account: Leave Assessment
Fringe Journal Line: Leave Assessment Expense

The cost of accrued vacation leave equals the Vacation Leave Assessment rate multiplied by the gross salary on each eligible earn code.

VLA Employee Group ID Types	Campus Rate	Med Ctr. Rate
1. Non Accruing Staff/AY Faculty	0	0
2. Accruing Staff/Non-Faculty Academic	0.07	0.0691
3. FY Faculty	0.08	0.0691

Vacation is NOT included in the Composite Benefit Rate (CBR) - it is a separate assessment
Vacation is NOT assessed based on hours accrued, but as a percentage of salary
Vacation assessment currently appears in the Fringe tab in the Labor Ledger DOPE
Vacation Leave Assessment will continue to be charged against applicable earnings even after an employee reaches their vacation accrual maximum.
UCOP Policy P-196-13 Payroll: Attendance, Time Reporting and Leave Accrual Records
There is not a vacation leave assessment for employees who receive a leave entitlement which doesn’t create a liability at the end of their employment (i.e. if it’s governed by a “use it or lose it policy”; meaning no payout for unused leave and leave is zeroed out at end of use duration)
Vacation Leave Usage or Payout ERNCDs will not be subject to Vacation Leave Assessment
Beginning June 2022, VLA will not be assessed on STP or SAS earnings.

Vacation Leave Usage

DOPE Report - Salary Detail Tab

When vacation is used, the time is reported in the timekeeping system. This is reflected in the Salary Detail Tab of the Labor Ledger DOPE as vacation usage expense. The most common earn codes are VCN and VAC but there are others for retroactive vacation taken, payout upon separation, etc.

DOPE Report - Fringe Detail Tab

A credit equivalent to the expense amount will be reflected on the Fringe Detail Tab:

Fringe CCOA Account Code: 508306 (prior to 7/1/21: 501005)
Fringe CCOA Account: Vacation Reimbursement (prior to 7/1/21: Non-Academic Vacation Reimbursement)
Fringe Journal Line: Vacation Usage Fringe Expense

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