The Leave Management System is a tool that enables the tracking and maintenance of different leave types of employees.
An important aspect of this Leave Management System is the Leave Year-end process where all the leave policies of the company are executed. This will ensure that the correct opening balance is carried over to the next leave year.
To process the Leave Year End in Paybooks
Go to Employees menu >> More tab >> Leave Management >> Click on Leave Year End Process.
Select Previous Leave Year and click on Process.
Note: After completing the Leave Year End Process, the new leave year will be created by default.
Once the leave year is processed, refer to the below path to verify the same
Go to Payroll settings >>Holidays
Click on add leave year
If the leave year is activated, the admin will be able to view the year as “Active “as per the below image
Leave year-end should be processed only after the completion of the leave year and on the 1st Day of the New Leave Year.
For instance, if your leave year is from January to December, you should run the Leave Year End process on the 1st of January.
In case your leave year is from April to March, then you should run the Leave Year End process on the 1st of April.
Once the Leave Year end is processed, the leave balance will be carried forward to the next Leave Year
Before processing the Leave Year, ensure all pending leave applications of the employees are either approved/rejected.
On completion of the Leave Year end process, the employee will not be able to apply for leave for the previous Leave Year.
Leaves cannot be applied spanning over 2 Leave Years.
For example: If Leave Year is from January to December and the employee is planning to apply for leave from 27th Dec to 3rd Jan, then the employee should split the leaves into two applications i.e., one from 27th Dec-31st Dec and the other from 1st Jan-3rd Jan.
While creating the Leave Type, if the "Max Leave Balance" in the Rules tab has been updated, then the "Max Carry forward at year-end" option in the Encashment tab will not be considered.
The carry forward of the leave to the next Leave Year will be either the leave balance of the employee or the days updated under ‘Max. Leave Balance’ whichever is lower.