With the Time Account, you automatically keep track of your employees' overtime and undertime — based on the stored Working Time Model. The target-actual difference is calculated automatically, and manual adjustments and overtime payouts are possible at any time.
Available from the Starter package. Adjust Subscription.
Requirements
A Working Time Model with a Target Time must be stored for the employee.
There must be Actual Times – from time tracking, planning, or import.
For existing Working Time Models, the Time Account is inactive. Create a new model starting from the next payroll period.
Important when switching: Never activate the Time Account in the middle of a running month. Fully complete the current month first, then create a new Working Time Model with a start date on the 1st of the new month (or the next payroll period).
1. Activate the Working Time Model
Master Data > Employees > Working Time Model
Set an end date on the current Working Time Model.
Create a new Working Time Model starting from the next payroll period and activate the Time Account in it.
2. Track Time
Track time as usual. An Actual Time can be created in the following ways:
Mendato Operations app
Manual retroactive entry in Working Days
Planned Times or Time Sheet import
The Actual Time is automatically compared with the Target Time and posted to the Time Account.
3. View the Time Account
The Time Account can be viewed in two places.
In the employee list: Path Master Data > Employees. The Time Account column shows the current hour balance of all employees at a glance.
In the employee profile: Path Master Data > Employees > [open employee]. In the profile, the Time Account is shown as its own field – including access to the transaction overview.
Color codes: Green = undertime (the employee owes time). Red = overtime (the company owes time or money).
4. View and Edit Transactions
Click the balance value in the employee list or in the employee profile to open the transaction overview.
Each row shows a target-actual difference or a manual adjustment.
You can filter and search by period or type.
The description and hour amount can be edited at any time.
5. Add a Transaction Manually
This is how you record, for example, an overtime payout of 20 hours.
Click + Add Transaction in the top right:
Select the date.
Type: Manual Adjustment.
Amount: e.g.
+2:00 hrsor-4:00 hrs.Optional: add a description (e.g. "Pay out overtime").
Note on Payroll Accounting
Manual Time Account adjustments are currently not yet transferred to the Time Sheet automatically. Inform your payroll accounting of payouts or corrections manually so they are taken into account correctly – they are not yet included in the export.
Public Holidays and the Time Account
If a public holiday falls on a regular working day, the Target Time for that day is set to 0 hours – so no undertime is created.
Requirement: the public holidays must be stored correctly in the Working Time Model (federal state selection).
If someone still works on a public holiday, the Actual Time is posted as overtime, since the Target Time is 0.
Tip: Check in the Working Time Model whether the correct federal state is set so that regional public holidays are recognized correctly.
Absences and the Time Account
This is how absences affect the Time Account:
Absence Type
| Effect on Time Account
|
Vacation
| Target Time is set to 0 – no undertime
|
Sickness
| Target Time is set to 0 – no undertime
|
Sick child
| Target Time is set to 0 – no undertime
|
Time off in lieu
| Target Time is set to 0 and the hours are deducted from the Time Account
|
Special leave
| Target Time is set to 0 – no undertime
|
Parental leave
| Target Time is set to 0 – no undertime
|
Maternity protection
| Target Time is set to 0 – no undertime
|
Educational leave
| Target Time is set to 0 – no undertime
|
Unpaid leave
| Target Time is set to 0 – no undertime
|
For absences to be taken into account correctly, they must be entered in Mendato as an absence. Only then is the Target Time adjusted automatically.
Part-Time Employees
The Time Account works the same for part-time employees as for full-time employees – the calculation is always based on the individual Working Time Model.
Store the actual weekly hours in the Working Time Model (e.g. 20h instead of 40h).
Define the working days and daily Target Time to match the part-time contract.
Mendato automatically calculates the correct target-actual difference per day.
Example: An employee works Mon–Wed, 6 hours each day (18h/week). On a Wednesday, they work 7.5 hours → 1.5 hours of overtime are posted.
Pay Out Overtime or Compensate with Time Off
There are two ways to reduce accumulated overtime:
Overtime payout
Create a manual transaction with a negative amount (e.g.
-20:00 hrs).Enter a description such as "Overtime payout March 2026".
Inform your payroll accounting about the payout, as it is currently not yet included in the export automatically.
Time off in lieu (taking overtime as time off)
Create an absence of the type Time off in lieu for the desired day.
The Target Time is set to 0, and the hours are automatically deducted from the Time Account.
The employee sees the day as a day off, and the overtime is reduced accordingly.
Frequently Asked Questions
Can I activate the Time Account retroactively?
No. The Time Account starts from the start date of the new Working Time Model. Past periods with the old model are not calculated retroactively. If you want to carry over an existing balance (e.g. from Excel or DATEV), create a manual transaction with the carry-over value on the start date.
Can I set an opening balance?
Yes – create a manual transaction on the start date of the new Working Time Model. Enter the previous balance there (e.g. +15:30 hrs) and use the description "Carry-over of old balance".
What happens if no Working Time Model with a Time Account is stored?
Without an activated Time Account in the Working Time Model, no target-actual difference is calculated. Time tracking continues to work, but no automatic overtime calculation takes place.
Are breaks taken into account in the calculation?
Yes. The Actual Time is the tracked working time minus breaks. Only the actual net working time is compared with the Target Time.
Can I deactivate the Time Account for individual employees?
Yes. The Time Account is activated per Working Time Model. Create a new Working Time Model without an activated Time Account – from its start date, no target-actual difference is calculated anymore.
Definitions
Term
| Meaning
|
| Contractually stored weekly hours (e.g. 40h)
|
| Time actually worked
|
Time Account
| Difference of Target Time − Actual Time, calculated automatically
|
Transaction
| A single movement on the Time Account (automatic or manual)
|