Cashing out annual leave means that an employee receives payment instead of taking time off work. To set up cashed-out leave you'll need to create a new income type which you'll use to process the cashed-out leave and pay the employee. This leave type will be treated as annual leave taken.
Setting up Cashout Annual leave
To create an income type for cashed-out leave:
Choose Setups, Payroll, Income Types, Income Type Maintain.
Enter an Income Type Code, for example: AL-CASHO.
Enter a Description, for example: Annual Leave — Cash Out.
In Income Category, choose Annual Leave.
Select the Leave Cash Out check box.
Paying Cashout annual leave to the employee
To cash out annual leave and pay the employee:
Choose Transactions, Process Payroll, Time Sheets, Create or Modify.
Enter the Employee Code or choose Find (F2) to search for the employee.
In Line Type select Normal Rate.
In Code select the income type for cashed-out annual leave.
Type the number of annual leave hours to be cashed out.
Review and complete the remaining fields and lines of the time sheet.
Reporting and enquiring on cashed-out leave
The Leave History Report (Reports, Payroll, Leave, Leave History) displays details of cashed-out annual leave and leave amounts.
In Employee Enquiry (Masterfiles, Payroll, Employee Details, Enquire):
Income (F2) includes annual leave cashed out in the Annual Period to Date and Year to Date columns.
Summary (F7) includes annual leave cashed out in the Wages/Salary Period to Date and Year to Date columns.
The Wages/Salary screen (available by selecting Summary (F7) followed by Itemise (F6) then Wages/Salary), displays annual leave cashed out as a separate item in the Period to Date and Year to Date columns.
