How do we proceed with Year-End Processing if our organization doesn't have a leave encashment policy?

Introduction

If your organization doesn’t offer leave encashment, you can still complete Year-End Processing (YEP) in Keka. The system requires a leave encashment policy—so setting up a default, non-financial one is necessary to proceed.

This guide walks you through the steps to finalize your year-end leave records without impacting your existing leave policies.

Leave encashment policy for Year-End Processing

Create a default leave encashment policy

Even if you don't use leave encashment, Keka requires a policy to enable Year-End Processing.

• Set up a nominal or placeholder leave encashment policy.

• This policy won’t trigger any payouts or changes—it’s just a procedural requirement.

Clear pending leave requests

Make sure all leave requests are either approved or rejected before continuing.

• This ensures leave balances are up-to-date and carry over correctly into the new year.

Review and manage leave balances

Before finalizing:

• Check that carryforward balances are accurate.

• Confirm if any leave expiry rules are applied as per your policy.

• Adjust balances manually if needed.

Finalize Year-End Processing

Once the default encashment policy is in place and pending items are addressed:

• You’ll see the Finalize button enabled.

• Click Finalize to close out the current year’s leave records.
  
  

Notes, Tips, Important, Warnings

Note: Setting up a default encashment policy won’t affect payroll or employee balances. It only satisfies a system requirement to complete YEP.

Tip: Keep your leave policy documentation updated for future audits or internal reference.