Master year-end leave processing with Keka HRMS. Learn how to manage carry-forwards, encashments, and adjustments to streamline employee leave management.
As HR managers and global admins of the Keka HR portal for your organization, you're the orchestrators of the organization's operational harmony, especially when it comes to managing employee benefits like leave balances. End of the year is a critical time to ensure all leave balances are accounted for before the curtain rises on a new year. Keka's year-end leave processing functionality is designed to handle this process with confidence and ease.
In this detailed guide, we'll navigate the steps of finalizing the leave records for the year. From carrying forward the entitled leaves to processing encashment requests and making necessary adjustments, Keka's platform offers an all-encompassing solution to tackle these year-end tasks. With Keka, you can guarantee that your team members step into the new year with a clear picture of their leave entitlements and without the worry of losing out on their hard-earned leave benefits.
Preparation for Year-End Processing
Before diving into YEP, it’s important to prepare adequately:
- Balances Verification: Start by ensuring you have an accurate report of the current leave balances on Keka. You can download the necessary report from Keka's Leave Balance Report.
- Updating Consumed Leaves: Make sure that all consumed leave balances are updated up to December or the end month of your leave calendar. If needed, update consumed leaves using this link: Updating Consumed Leaves.
- Encashment Policy Check: Review and confirm that your organization’s encashment policies are correctly set up in Keka. Here’s a guide to help you manage leave encashment policies: Managing Leave Encashment.
- Leave Applications: Inform your employees about the YEP. Encourage them to apply for any required leaves within the current year, as they will not be able to submit applications once the YEP is finalized.
- Do Not Move Employees Between Leave Plans: Ensure not to transfer employees from one leave plan to another until the LYP/YEP is concluded, as this could lead to complications in the leave balance calculations.
- Year-End Process Settings Check: It's critical to reassess your organization’s YEP settings for each leave type on Keka, ensuring they are correctly configured according to your policies.
With these preparatory steps complete, you’re ready to proceed with Year End Processing.
Go to the Time Attend (1) section, then open the Leave (2) section and find the Leave Plans (3) tab.
After accessing the Leave page, locate your desired leave plan(1), and then click on Year End Processing(2) to proceed with year-end processing for that specific leave plan in Keka HR. Finally, click the Begin Year End Processing(3) button to proceed.
Additionally, keep in mind that until December, we offer a "Preview Year-End Processing" feature that allows you to preview the data without making any changes. This helps you get a sneak peek at the year-end information before the official year-end processing begins. Once December arrives, you'll find that the Begin Year End Processing option becomes active, allowing you to execute the necessary actions with confidence. This ensures a seamless transition into the new year with accurate and well-managed HR records.
After clicking on the Begin Year End Processing button, a new page will open with three sections. The first section is PENDING LEAVE REQUEST where you can review any pending leave requests for the year and take action by approving or rejecting them directly from this section.
Note : You must complete this step before proceeding to the next section
In the second section, titled LEAVE BALANCE ACTIONS you can view the leave balances for the employee, including their available balance, any encashed days, carry forward days for the next year, and days that are set to expire.
If you'd like to change the ratio of encashed or carry forwarded leave, you can override the text by hovering over the value and clicking on the Edit icon.
In the third section, you will encounter Leave Encashment. It's important to note that you must first set up a leave encashment policy in payroll if you intend to use this feature.
For organizations without a specific leave encashment policy, a default policy must be established within Keka to facilitate the Year-End Processing. This default policy serves as a procedural placeholder and is required even if leave encashment is not typically practiced within your organization.
You can refer to this article to setup leave encashment policy : Managing leave encashment policies
However, if you have a leave encashment policy in place, you will see details such as the type of leave being encashed, the specific encashment policy being applied, the amount to be paid, and the option to select the month for disbursing the encashed amount.
While the encashment amounts are automatically calculated based on the default policy's formulae, you have the flexibility to adjust these amounts for individual employees as required. This can be done after the system has performed the initial calculation.
Once you have reviewed all the amounts and employee balances and ensured that everything aligns with your intentions, you can proceed by clicking on the Finalize button to complete the year-end processing.
Executing the leave year-end processing in your Keka HR portal is a straightforward process that involves carefully reviewing and managing leave requests, balances, and, if applicable, leave encashment policies. By following the simple steps outlined in this guide, HR administrators can efficiently and accurately close out the year, ensuring that leave records and balances are up-to-date and in compliance with organizational policies.
If you have any further questions or need assistance, please refer to our support resources or reach out to our dedicated support team. Streamline your year-end HR processes with Keka HR and ensure a smooth transition into the new year.
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