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When to Use RDO Rules

Use an RDO setup when employees work more hours than should be paid immediately, and the extra portion should be tracked as rostered day off time. For example, an employee may work 8 hours, be paid for 7.6 hours, and have 0.4 hours accrued as RDO leave.
This page covers Smart Formulas configured in UpSheets. For Smart Formulas imported from Xero pay items, see Rostered Days Off (RDO) for Xero-Imported Smart Formulas.

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Before You Start

Before setting up RDO rules:
  • Create or confirm the leave type in Xero.
  • Refresh organisation settings in UpSheets if the leave type is new.
  • Open or create the Smart Formula from Smart Formulas > Configure.
  • Make sure the formula has a normal ordinary hours rule before adding the RDO accrual rule.

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Example: 8 Hours Worked, 7.6 Paid, 0.4 Accrued

This example assumes the employee works Monday to Friday and should accrue the time between 7.6 and 8 hours as RDO leave. With these rules:
  • A 7.6 hour day creates 7.6 paid ordinary hours and no RDO accrual.
  • An 8 hour day creates 7.6 paid ordinary hours and 0.4 hours of RDO accrual.
  • A 9 hour day creates 7.6 paid ordinary hours, 0.4 hours of RDO accrual, and 1 hour of overtime.

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Add the RDO Accrual Rule

In the Smart Formula editor:
  1. Click Add rule.
  2. Set Rule Type to Ordinary Time.
  3. Set the days the RDO rule applies to.
  4. Set the period mode to hours.
  5. Enter the hour range to accrue, such as 7.6 to 8.
  6. Set Rate type to Multiple.
  7. Set Multiple to 0.
  8. Set Modifier to Accrue Leave.
  9. Select the Leave type that should receive the accrual.
  10. Save the rule.

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Why the Multiple Is 0

The RDO accrual rule is used to identify the RDO portion of the shift. Setting the multiple to 0 prevents that portion from being paid as earnings while still allowing UpSheets to create the leave accrual line.

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Example: Fortnightly RDO Threshold

If your RDO logic depends on a fortnight rather than a single day, set the formula or employee assessment period to fortnightly. Use Smart Formula Settings to set the organisation default, or enable employee-level overrides and set the period during assignment. For example:
Check the award or employment agreement before using fortnightly thresholds. Some RDO arrangements are daily, some are weekly, and some are based on a longer roster cycle.

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Test the RDO Rules

Before assigning the formula to employees:
  1. Open Smart Formulas > Simulate.
  2. Select the formula and version.
  3. Add examples for 7.6, 8, and overtime days.
  4. Click Run Simulation.
  5. Confirm the paid hours, overtime, and leave accrual lines match the expected result.
After publishing and assigning the formula, run a small import and review the validated lines before uploading to Xero.