Processing Leave Encashment at the End of the Leave Year

1. Navigate to Leave > Leave Settings > Leave Periods. 

2. Click the three dots next to the year period, then select "Start Year End Process".

Important: This option is only available during the last month of the leave period. For example, if the period is from January 1, 2024 to December 31, 2024, you can only start the process from December 1, 2024. The leave period must be active.

3. The next page will display an overview of employees' leave balances, including carry forward days, days encashed, and remaining days before the leave expires.

The order in which leave is carried forward or encashed depends on your configuration:

• If Carry Forward is preferred: The system calculates in the following order: Leave Balance > Days Carry Forward > Days Encashed.
• If Encashment is preferred: The system calculates in this order: Leave Balance > Days Encashed > Days Carry Forward.

3. Click the "Next" button to proceed to the final page of the year-end leave processing. 

This page will summarize:

• Total Days Encashed: The final number of days to be paid out.
• Amount to be Paid: Calculated using the formula: Days Encashed x Leave Pay Formula (The Leave Pay Formula is found in the company payroll setting).
• Payroll Selections: Choose the appropriate payroll run to synchronize the leave encashment.

Once all details are finalized, click the "Process Leave Encashment" button. 

4. After processing, you can view the process by selecting "View Year End Process" in the Leave Year Period setting.

Additional Notes

• Canceling the Year End Process:
  • Administrators can cancel the year-end process if:
    • The selected payroll run status is Draft, Cancelled, Deleted, or Rejected.
    • All employee payroll statuses are Draft or if all payrolls are deleted.
    • If only part of the payroll is cancelled, or if the payroll is Pending Approval, Approved, or Released, the cancel button will be disabled.

Check out this guide for instructions on managing processed leave encashment that has been synced: Syncing Leave Encashment with Payroll