In NetSuite, the Time-Off Management feature, part of the SuitePeople HR module, allows businesses to manage employee leave policies effectively. Below is a concise explanation of time-off plans, their setup, terms, and time-off rules in NetSuite terminology, tailored for someone new to the system who needs to study and teach others.
Time-Off Plan
A time-off plan in NetSuite is a framework that defines the types of leave employees can take (e.g., vacation, sick leave, personal time) and the rules governing how these leaves accrue, are used, and are tracked. Each plan can be customized based on company policies and assigned to employees by criteria like location, department, class, or subsidiary. For example, you might create separate plans for full-time vs. part-time employees or hourly vs. salaried staff.
Key Terms in Time-Off Management
Time-Off Types: These are the categories of leave, such as vacation, sick leave, or bereavement days. Each type is defined with specific settings, like whether it accrues a balance or is tracked only (e.g., for unlimited sick days). You can create multiple types to match your company’s policies.
Time-Off Rules: Rules define how a specific time-off type behaves within a plan. They specify eligibility, entitlement, accrual methods, and carryover limits.
Accruals: The process of earning time off. Accruals can be set as a fixed amount per period or based on hours worked.
Employee Center: A NetSuite role where employees can submit time-off requests and view their balances. Managers can approve/reject requests here or via email notifications.
Track Only: A setting for time-off types where usage is recorded without accruing a balance.
Carryover Limits: Rules that determine if unused time off can be carried over to the next year and, if so, the maximum amount allowed.
Setup Process for Time-Off Management
To set up Time-Off Management in NetSuite, follow these steps:
Enable Time-Off Management: Ensure SuitePeople HR is provisioned in your account (check under Setup > Company > Billing Information > Add-On Modules).
Create Time-Off Types:
Navigate to Setup > HR Information System > Time-Off Type > New.
Define the type, set a display name, and configure settings like minimum increment (e.g., hours or days), whether it’s track-only, and link to a payroll item if using SuitePeople U.S. Payroll.
Create a Time-Off Plan:
Go to Setup > HR Information System > Time-Off Plan > New.
Name the plan and add time-off types (e.g., vacation, sick leave).
Specify if the plan applies to specific subsidiaries, departments, or locations. If none are selected, the plan can be assigned to any employee.
Define Time-Off Rules:
Within the plan, click New Time-Off Rule and select a time-off type.
Set eligibility (e.g., minimum tenure, like 0 years for new hires or 5 years for increased vacation).
Configure accruals (fixed amount or hours worked) and carryover limits.
Save the rule. You can add multiple rules for the same time-off type to account for tenure-based changes (e.g., 10 vacation days for 0–4 years, 15 days after 5 years).
Assign Plans to Employees:
Go to Lists > Employees > Employees, select an employee, and edit their record.
On the Time-Off subtab, assign the plan and set the start date for time-off calculations.
If using hours-worked accruals, configure payroll items, accrual rates (e.g., 0.04 hours per hour worked), and any starting balance.
Set Up Employee Center Access:
Ensure employees have the Employee Center role to submit requests and view balances.
Managers need permissions to approve/reject requests via email or the Employee Center.
Review and Adjust Balances:
Use the Time-Off Balance Details Report (Reports > Employees/HR > Time-Off Balance Details) to monitor changes and make manual adjustments if needed.