Leave year-end process

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This section explains the leave year-end process.

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The leave year-end process is run at the end of the year, when leaves are lapsed and leaves to be carried forward or encashed are processed in the system as the new financial or calendar year starts.

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New leaves are then credited to each employee’s leave balance.

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For the previous leave balance, you run a year-end process in which leaves for that year are lapsed, carried forward, or encashed, within their limits.

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After this process, whenever the new year starts, new leaves are credited according to the policies and entitlements set in the system, and the balances are available in each employee’s leave balance.

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This video shows how to run the leave year-end process.

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Navigate to Control Panel → Leaves → Balance section.

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In the Balance section, click the dropdown beside "Manually Adjust" and choose "Run Year-End Process".

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This is generally done at the end of the year after payroll has been completed for the last month.

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When running the year-end process, you must specify the transaction month, and payroll for that month must already be processed.

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For example, if it is December, select December as the transaction month and make sure payroll has already been run for that month.

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Next, specify the leave encashment unit if your company has a leave encashment policy, specifying whether it is based on LOP, basic salary, or a fixed value per leave.

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Then specify the base days for calculating the leave encashment unit, for example, 30 or 31 days.

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If you do not want to carry forward any negative balance, select the option to prevent negative balances from being carried forward.

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If you want deactivated employees to be included in the year-end process, select that option; otherwise, leave it cleared.

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You can view leave categories with carry-forward and encashment limits and enter the applicable limits according to your policy.

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For annual leave, you can select "All" to carry forward the full balance or specify a particular limit set in your policy.

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Similarly, enter the encashment limit applicable for your company, or select "All" if all leaves are encashable.

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Other leave categories that cannot be carried forward or encashed, like CL or SL, are lapsed when the process runs.

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After reviewing the selections, click "Next" to confirm that the selected leaves up to December are lapsed and carry-forward leaves are credited in the next month.

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Proceed to the next step to view carry-forward leave balances for employees across different leave categories.

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As an admin, you can make changes directly here or import carry-forward balances using a CSV file if needed.

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If everything appears correct, you see the encashment total calculated according to the leave balance and payroll settings, showing the amount and number of leaves for each employee.

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After checking the totals, click "Import Leave and Cash Balance" to upload the balances from the system or CSV file as per your requirement.

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Finally, click "Next" and then "Finish" to run the leave year-end process, and the new leave balances are credited from January according to the entitlement rules set in the leave section.