Locations can be set up to split labour costs across various branches or geographical regions of a business; however, Locations will also impact how and where leave accrual is reported. The main thing to note is the location of leave is based on the location of the earnings that accrued that leave.
Let's take the below pay run as an example:
First off, we ignore all pay categories that do not Accrue Leave. In this case, the Overtime pay category does not accrue leave, but the Permanent Ordinary Hours do. Now, you can see that each earnings line has a Location, so we sum the total of hours spent at each location. Which is:
Location 1 - 36 hours
Location 2 - 2 hours
That gives us a total of 38 hours. We then work out the ratio of hours for each location. For Location 1, the ratio is 36 / 38 = 0.94737, while the ratio for Location 2 is 2 / 38 = 0.05263.
Now we look at the amount of hours of leave that has been accrued:
Taking Annual Leave, the amount accrued is 2.92296 hours. Using the ratios calculated above, the employee would have accrued 2.92296 x 0.94737 = 2.76912 hours of Annual Leave at Location 1 and 2.92296 x 0.05263 = 0.15383 hours of Annual Leave at Location 2.
Note: These balances can be viewed by running the Leave Balances Report with the 'Group by' option set to Leave accrual location. Also, if an earnings line does not have a Location listed, the system will use the employee's default location.