Tracking Paid Time Off (PTO) and Sick Leave Balances Using PROCAS

Tracking employees’ paid time off, vacation, and sick leave balances can be one of the most headache-inducing functions of being an accountant. For government contractors, recording accurate PTO/vacation and sick leave accruals is crucial to calculate correct indirect rates each accounting period and stay in accordance with GAAP.

At PROCAS, we’ve tried to simplify the process by automating as much as possible. To help our clients, we’ve created 2 videos breaking down the standard PTO process using PROCAS:

1. PTO Setup 
2. The PTO Accrual Process

PTO Setup

PTO Setup is the backbone of the PTO Accrual Process. It needs to be completed before you can begin tracking employee’s PTO/vacation and sick leave balances in the system.

1. Intro                                                                          (0:00 – 1:17)

2. PTO Setup                                                               (1:18 – 4:17)

• Completed – During initial implementation of PTO tracking
• Modified – Only if there is substantial change to PTO policies or the chart of accounts
  • We recommend contacting your consultant before making modifications

3. PTO Accrual by Person                                         (4:18 – 5:45)    

• Completed – As you onboard employees
• Modified – When employees’ default hours need to change

4. PTO Project/Task Creation                                  (5:46 – 9:23)

• Completed – Every calendar year
• Modified – Original 3 WBS levels never modified after being recorded in the general ledger
  • Can add 4th and 5th levels if needed

5. Work Authorization by Task                                 (9:24 – 11:37)

• Completed – Every calendar year
• Modified – When employees are on-boarded or terminated
• Updated – Automatically with each accrual entry as seen in next video

The PTO Accrual Process

The PTO Accrual process is the automated process you will use each timesheet period to calculate and track employees’ PTO/vacation and sick leave hours. This process starts with the selection of employees, followed by the addition of newly accrued hours and updating of balances, ending with the automatic adjustment(s) made to financial statements to account for these changes.

All steps of this process are completed each timesheet period and modified routinely.

1. Intro                                                                            (0:00 – 0:43)

2. Process PTO Hours Accrual                                  (0:44 – 3:13)

3. PTO Hours Accrual Journal                                   (3:14 – 8:16)

    a. Updated Work Authorization by Task               (8:17 – 10:07)

4. PTO Accrual Report                                                (10:08 – 13:31)

5. Accrual Entry in General Journal                          (13:32 – 14:21)

For additional help, you can select the Help Icon  in the upper right-hand corner of each screen. This will give you specific instructions for completing each step as well as additional definitions for what is being presented.