PTO Accruals replaces the legacy Workforce PTO Policies. Please contact your CSM or R365 Support to learn about transitioning to the new PTO Accruals system.
PTO Accruals is only available when R365 Payroll or the updated employee record is enabled.
Overview
PTO Accruals allows organizations to manage employee paid time off using configurable accrual rules. Accrual rules determine how time off is earned, tracked, and paid, and are assigned directly to employees.
When a time off request is approved, time off earnings are generated based on the employee’s assigned accrual rules and the earning type associated with the request. These earnings are added to the Daily Sales Summary (DSS) and can be exported for payroll processing.
Each accrual rule defines:
How time off is accrued
Which earning type is used
How balances are calculated and applied
Employees maintain accrued balances for each applicable accrual rule. During the time off request process, the system automatically applies the appropriate balance based on the employee’s assigned rules and the selected time off type.
Accrual Rule Types
Accrual rules are configured using one of the following policy types:
Unlimited – No limit on time off granted
Accrued – Time off accrues based on hours worked
Fixed Date – Time off is granted on a specific date each year
Accrual rules are created using the Accrual Rule Wizard, which guides users through selecting an earning type and configuring accrual behavior.
Pages associated with Accrual rules
Accrual Rules page
The Accrual rules page displays all configured accrual rules. Here, users can view existing rules, create new rules, and create new versions for existing rules.
Accrual Rules record
The Accrual Rule sidesheet on the Accrual Rules tab of the Labor Rules page displays the policy configurations for a single accrual rule. Here, users can view and create new versions of existing rules.
Employee Record Time Off Tab
The Time Off tab of employee records displays the accrued balances for an employee. Here, users can assign accrual rules, as well as view and adjust an employee’s accrued balances.
Other Areas of R365 & Reports
Mobile App - Employee Time Off Requests
Employees can submit time off requests using the R365 Mobile App. The app displays current accrued balances based on the employee’s assigned accrual rules, allowing employees to understand available time off before submitting a request.
When a request is submitted:
The employee selects a supported time off type
The system determines which accrued balance applies
Requested hours are validated against available balances
Employees can also view existing requests and cancel submitted requests directly from the mobile app.
Employees Assigned to Multiple Locations
For employees assigned to multiple locations, time off requests and related balance usage apply across all associated locations. Submitting, approving, denying, or canceling a time off request affects the request consistently across all locations the employee is linked.
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Time Off Management in the R365 Mobile App
Users who are responsible for managing employee time off requests can approve employee requests through the R365 Mobile App. Here, users can view the time off request, including accrued balances, and approve or decline the request.
Time Off Tab of the Manager Tools Page
The Time Off tab on the Manager Tools page allows managers to view, create, and manage employee time off requests.
Managers can:
View submitted time off requests and their current status
Review employee accrued balances at the time of request
Approve or deny requests
Create time off requests on behalf of employees when needed
Accrued balances displayed during review are calculated automatically based on the employee’s assigned accrual rules and selected time off type. Balance availability may change if requests are modified, canceled, or if accrual rules are updated.
When a request is approved or denied, the decision applies according to the employee’s assigned locations and accrual rules.
Manager Queue
The Manager Queue provides a centralized view of pending time off requests that require action.
From the Manager Queue, managers can:
Review employee time off requests
See the accrual rule and time off type associated with each request
View system-calculated balances relevant to the request
Approve or deny requests directly from the queue
Balances shown in the Manager Queue are informational and reflect the employee’s available accrued time off at the time of review. These balances are determined by the employee’s accrual rules and may change based on additional requests, cancellations, or accrual activity.
DSS (Daily Sales Summary)
When a time off request is approved, time off earnings associated with the applicable accrual rule are added to the Daily Sales Summary (DSS) for each day included in the request.
Key DSS behaviors include:
Earnings are generated using the earning type defined by the accrual rule
Future-dated time off entries appear in the DSS for the applicable dates
DSS records containing future time off earnings are sorted to the bottom of the DSS grid until the effective date
Time off earnings in the DSS can be reviewed, included in payroll exports, and processed according to standard payroll workflows
Reports & Dashboards
PTO Accrual activity is reflected in reporting and payroll export workflows to support accurate payroll processing and review.
R365 Payroll Export
The R365 Payroll Export report includes time off earnings generated from approved time off requests. These earnings are summarized for the selected date range and can be downloaded and sent to a third-party payroll provider.
Time off earnings included in the export:
Are generated based on the earning type associated with the applicable accrual rule
Reflect approved time off requests for the selected reporting period
Follow standard payroll export behavior alongside other labor earnings
Availability of time off earnings in reports depends on the timing of request approval and the dates included in the export range.
Setup & Related Areas
Accrual Rule Wizard
Accrual rules are created on the Accrual rules page using the Accrual Rule Wizard. The wizard guides users through configuring how time off is accrued and paid by walking through a series of setup steps.
Using the wizard, users:
Select the earning type associated with the accrual rule
Choose the accrual rule type (Unlimited, Accrued, or Fixed Date)
Configure accrual behavior and limits based on the selected rule type
Once created, accrual rules can be assigned to employees and used to calculate balances and time off earnings.
Earning Type Configuration
Each accrual rule is associated with a single earning type. The earning type determines how time off earnings are calculated and paid when a time off request is approved.
Supported earning types include:
Unpaid
PTO
Vacation
Sick
Bereavement
Pay rate calculation settings for earning types are configured by R365 Support. Depending on configuration, time off earnings may be calculated using one of the following methods:
Primary Job Rate
Primary Job Rate or Minimum Wage
90-Day Average Pay Rate
Average Pay Rate of Previous Week Worked
$0.00 (Unpaid)
The system automatically applies the configured pay rate calculation when generating time off earnings.
Calculation Methods | Description/Notes |
Primary Job Rate or Minimum Wage | Pay rate for associated hours is the greater rate between the employee’s current effective job rate for their primary job and the configured minimum wage.
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0.00 (Unpaid) | Pay rate for associated hours is $0.00.
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Primary Job Rate | Pay rate for associated hours is the employee’s current effective job rate for their primary job. |
90-Day Average Pay Rate | Pay rate is the average pay rate for the employee over the last 90 days, calculated as follows:
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Average Pay Rate of Previous Week Worked | Pay rate is the average pay rate for the last 7-day workweek the employee worked, calculated as follows:
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Assign Rules to Employees
For employees to be able to accrue hours, accrual rules must be assigned to them. Accrual rules are assigned to employees on the Employees page. Multiple accrual rules can be assigned to multiple employees at the same time. Learn more about assigning rules to employees here.
