How to treat accrued vacation times in the books depends largerly on the size and type of company and the contractual treatmeant of accumulated vacation credits.

Companies that need to hire temps when one of their permenant employee goes on vacation are usually accruing the vacation time to avoid that during the absence of the employee, the monthly accounts are charged with two salaries, the salary of the person on vacation and the salarly of the temp.
In companies where the workload is carried by the remaining staff and no temps are needed, the no vacation accruals are usually booked.

In this connection, it is reminded that the vacation accrual system should be carefully planed. Many companies state in their employment contracts that accumulated vacation credits cannot be carried over to the next fiscal year unless specifically authorized by the manager. This is to avoid that employees with 25 years plus employment claim all of a sudden the entire accumulated vacation credits over the past 15. If that employee leaves the company at the same time, such credits must be paid in cash unless otherwise stated in the employment contracts.
Werner Reisacher