HawkHR provides an option of run year end process to manage the counts of leaves of employees according to the company's leaves. This process can only be processed once in a financial year. Year End Process is triggered to process leave-related activities that need settlement by end of year such as lapsed, encashed, and balances. It marks the closure of the leave allotted to that particular calendar year or financial year (based on the company?ÇÖs policy). It is at the end of year, that all the unused leaves are carried forward to the next year or encashed or lapsed.
Things to do before running Year End Process:
- All pending leaves till transaction month should be approved/ rejected. This is to ensure that the balances for the current year leaves are deducted from the entitled numbers for the year and not from next year leave balances that will get automatically credited to employees?ÇÖ accounts later.
- No leaves for future months should be approved. This is again to ensure that balances for leaves applied for next year are deducted from the balances that will be credited to them for the next year and not from the current balances. I didn't understand this point.
- The Year End Process should be triggered after running the payroll for the transaction month. If there is (-ve) balance for an employee and if you run year end process before running payroll then this (-ve) balance will get carry forwarded to the next month and the current leave balance becomes zero. Now if you run payroll then there is no (-ve) balance, hence there will be no LOP for the current month salary.
Use case: Let?ÇÖs say your leave calendar year is Jan 1 ?Çô Dec 31 ( which will make Dec your transaction month). An employee had certain balances available in his/ her account and has applied for two different sets of leaves: one for the month of Dec and second for Jan. As an admin, you need to ensure below before running payroll:
- Approve all leaves applied for Dec
- Do not touch leaves applied for Jan or future dates
- Run payroll for Dec
Refer to the following steps to run year end process:
- Navigate to: Control panel -> Leaves -> Balance
- Click on the drop down of Manual adjust button (given in the page action bar), Click on Run Year End Process option
- A new page will open up showing fields to enter the details
- Enter the Transaction Month (all the leaves till the month selected get expired and the carried leaves will be credited in the next month)
- Select the option on which Leave Encash is Based On (LOP/ Basic/ Specified , in case of specified enter the value, value mentioned will be used as the amount per leave unit)
- LOP: If this is selected then encashable amount per leave unit would be equal to the loss of pay of salary per day for the employee. Important- If there is no pay component for which ?ÇÿLOP?ÇÖ is enabled then in year end process the ?ÇÿLOP?ÇÖ per leave unit would be zero i.e. zero amount would be encashed.
- Basic: If this is selected then encashable amount per leave unit would be equal to the ?ÇÿBasic?ÇÖ pay component value for the employee.
- Specified: If this is selected then encashable amount per leave unit would be equal to the specified value for all employees.
- Enter the Base Days (this help in calculating the number of days in a month on which the salary is calculated)
- In order to Do not carry forward negative leave balance (mark the check box)
- To Allow Deactivated employees also in year end process (mark the check box)
- In the table below, enter the Carry limit, Encash limit of the respective leave type
- Click on Next to get on Carry forward balance
- Details of all employee with their leave data is given on this page
- Option of Import Variable pay is also given on top right corner
- Click on Next button to get on encashment
- On this page calculated values of encashment is shown with rest of the details
- Again in case of Manual adjustment, option of import is given on the top
- Click on Next button
- Click on Finish button to finish the year end process
Note that this process can only be processed once in a financial year. All the changes will be made instantly.
What happens when you run Year End Process?
- Leave Category whose ?Ç£Can be carried?Ç¥ setting is enabled, gets carried forwarded to the new year as per the limits you configure.
- Leave Category whose ?Ç£Encashable?Ç¥ setting is enabled, goes out for encashment. Amount of Encashed leaves gets added as arrears in the system which gets automatically added to next payroll.
- If for a Leave Category ?Ç£Can be carried?Ç¥ or ?Ç£Encashable?Ç¥ settings are disabled, then all the leave balances of all employees (for this leave category) will get elapsed.
- If there is a Leave Category for which both settings i.e. ?Ç£Can be carried?Ç¥ and ?Ç£Encashable?Ç¥ are enabled then the carry limit rules you entered will get credited to the next month. From the balance (i.e. Initial Leave Balance ?Çô Carry Limit) the encash limit leaves will get encashed. The remaining leaves (i.e. [Initial Leave Balance ?Çô Carry Limit] ?Çô Encash Limit ) will get elapsed.