## Background information

This article covers the following points:

- What are the different types of rounding done in Timmi Absences?
- How to change period end rounding rules
- How is period end rounding calculated?

## The different types of rounding done in Timmi Absences

Timmi Absences rounds in two different ways:

**- Rounding each month** will be implemented if the number of leave days to be accrued during the accrual period divided by 12 does not give a whole number.

For example, an employee who should accrue 25 annual leave days will be credited 2.08 days for 2 months and then 2.09 days the next month. The purpose of rounding is to allow the employee to have a balance of 12.5 (25/2) days of annual leave halfway through the period. In fact, if Timmi Absences did not round each month, the employee would have a balance of 12.48 days in the middle of the period, preventing them from requesting a half day. This rounding is automatic and cannot be changed.

**- Rounding at the period end **will be applied to the last accrual month. This means the employee accrues their usual leave, plus an additional amount.

For example, an employee entitled to 25 annual leave days per year and who accrued 11x2.08 days over the first 11 months will have an available balance of 22.88 days available on the second-to-last month of the accrual period. If they are credited 2.08 days, their balance at the end of the accrual period will be 24.96 days. Timmi Absences will then apply the rounding rule, giving the employee a credit of 0.04 days, so they have a balance of 25 annual leave days at the end of the accrual period.

This rounding can be changed, as it is configured in the account category (Annual Leave, RTT, etc.). Important: the month of the last accrual can be the account’s accrual period end or the month of the employee’s contract end date.

## Changing period end rounding rules

You can change the rounding rules in the Configure > Accounts module. Simply click on the ‘Modify’ icon for the account in question, go to the drop-down list associated with the ‘Round entitlements at the period end’ setting and select how you want rounding done. Remember to save your changes. For more information on account management, please visit our help page on this topic.

## Calculating period end rounding

Rounding is calculated on the last month of accrual depending on the rounding rule defined in the account settings.

### 1. What is the last accrual month?

The last accrual month can be:

- Either the last month of the account’s accrual period (if the accrual period is greater than 1 month)
- Or the month of the employee’s contract end date

### 2. Does the entitlement or balance have to be rounded?

For example, consider an employee who is present all year and who takes a half day of advance leave:

- at the end of April, the employee has accrued 11x2.08 = 22.88 days and is credited 2.08 days in May, or 24.96 days
- they already took 0.5 days of annual leave, so their balance is 24.46

If you apply rounding to the accrued entitlement, the 24.96 is rounded to 25 days (the credit is 25-24.96 = 0.04).

If you apply rounding to the balance, then the 24.46 will also be rounded to 25 days, even though they already took 0.5 days (the credit is 25-24.46 = 0.54).

So as you can see, if a rounding rule is applied to the balance, the employee is credited 0.5 days, which is equal to the half day they took.