Help Center

How to Process the Leave Year End

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

You first need to create the new leave year; i.e., if the current leave year is from April 2024 to March 2025, then you have to create the leave year from April 2025 to March 2026.

Based on the calendar leave year, there will be a pop-up message displayed that the leave year end has to be processed. You can click “Process,” and you will be directed to the leave year-end process page.

Once all your leaves are approved as of March/Dec, then you can go ahead and process the leave year-end.

On the home page, click “Transactions.”

Scroll down to Time Tracking, Management

Click “Leaves.”

Click “Leave Year End Process” under “Configuration”.

Select the leave year from the drop-down.

Click “Process.”

Then 2025-26 will be activated

The opening balance will be updated as per the leave credit rule.

You can do the leave year-end process multiple times, but once the payroll is locked for the first month of the calendar year/leave year, then you cannot reprocess the leave year-end .

For example, April payroll for the April-to-March leave year and January payroll for the January-to-December leave year.

Note: After completing the Leave Year End Process, the new leave year will be  activated. 

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.

Important Notes:

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 or 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, i.e., the previous and current years.

For example, if the leave year is from January to December and the employee is planning to apply for leave from 27^th Dec to 3^rd Jan, then the employee should split the leaves into two applications, i.e., one from 27^th to 31st Dec and the other from 1^st Jan to 3^rd Jan. 

While creating the leave type, if the "Max Leave Balance" in the Rules tab has been updated with the number of days, then the "Max Carry Forward at Year-End" option in the Encashment tab will not be considered in the leave year-end process.

To view the same, go to Payroll Settings  à  Leaves à Click View/Edit against the specific Leave Type à Rules.

The carryforward 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.