The Leave Year-End Process in HRStop helps organizations finalize leave records for the current leave year and prepare for a new one — whether your leave cycle follows a calendar year (Jan–Dec) or financial year (Apr–Mar).
This process is crucial to ensure all leave balances are correctly:
- Carried Forward (as per carry-forward rules)
- Encashed (if allowed by policy)
- Lapsed (if neither carried nor encashed)
Pre-Requisites Before Running Year-End Process
To maintain data accuracy and compliance with payroll, complete the following tasks before running the Year-End Process:
1. Approve or Reject All Pending Leaves
- Make sure all leaves up to and including the transaction month (usually December) are finalized.
- Leaves still in Pending status may interfere with proper balance calculations.
2. Do Not Approve Future-Dated Leaves
- Avoid approving leaves applied for the next leave year (e.g., January) before running year-end.
- The system auto-adjusts these later, but manual approvals may affect balance syncs.
3. Run Payroll for the Transaction Month
- Mandatory Step: Ensure payroll for the last leave month (e.g., December) is processed before running this process.
- Why? If payroll isn't run, negative leave balances won’t be deducted (LOPs) and may roll over incorrectly.
Best Practice: Run payroll → Then perform year-end → Then credit new year's leaves.
How to Run the Year-End Process
Follow these steps to execute the Year-End Process:
Step 1: Navigate to the Year-End Option
- Go to : Control Panel -> Leaves -> Balance
- Click the dropdown next to Manually Adjust
- Select Run Year-End Process
Step 2: Configure Year-End Settings
Select Transaction Month
- Choose the month that marks the end of your leave year (e.g., December for Jan–Dec cycle).
Define Leave Encashment Calculation Basis
Select how the system should calculate the monetary value of encashed leaves:
| Option | Description |
|---|---|
| LOP | Encash amount = value per Loss of Pay day (if LOP-enabled pay component exists) |
| Basic | Encash amount = value of 1 day of employee's Basic Salary |
| Specified | Fixed encash value per leave unit (e.g., ₹500 per leave) |
If no LOP-enabled pay component exists in salary settings, LOP encash will result in ₹0.
Optional Checkboxes:
- Do not carry forward negative leave balance: Resets any (-ve) leave balance to zero for next year
- Include deactivated employees: Ensures even inactive employees’ balances are included in encashment or carry forward
Step 3: Configure Carry Forward & Encash Limits
Eligible leave categories (where “Can be carried” or “Encashable” is enabled) will appear in a table.
For each leave category:
- Enter Carry Forward Limit (e.g., 10 leaves max)
- Enter Encash Limit (e.g., up to 5 leaves can be encashed)
Leave categories without carry or encash rules will automatically lapse during this process.
Step 4: Preview and Modify
Click Next to proceed through confirmation stages:
Carry Forward Preview
- See employee-wise breakdown of leaves that will be carried forward
-
You can:
- Edit values manually
- Upload in bulk using the Import Carry Forward Balance feature
Encashment Preview
-
Displays:
- Number of leaves to be encashed per employee
- Corresponding encash amount (based on chosen calculation method)
-
You can:
- Download/Upload a sheet using Import Leave Encashment Balance
Final Step: Complete the Process
After reviewing and validating all values:
- Click Next
- Click Finish
The system will execute the process and apply the changes immediately.
What Happens After Running the Year-End Process?
Here’s what the system does automatically:
| Action | Outcome |
|---|---|
| Carried Forward Leaves | Added to employee balances for the new year starting January 1 |
| Encashed Leaves | Added as arrears in the next payroll cycle |
| Lapsed Leaves | Removed from system (leaves that exceeded carry + encash limits) |
| New Year Credits | New entitlements (if configured) are triggered as per leave credit rules |