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Leave encashment process change

Hi Experts,

We are doing leave encashment by following method (they are using since 2011)

let say Quota balances in 2006 100 days they will enter no of days to compensate (50-) in 2013 with negative operation and the number 50 they will enter

in 0015 additional payments info type,when they execute payroll, amount will be calculated and get populated in result table

but based on this configuration employees are getting paid wrongly.

So now they want to implement quota compensation method.

if we implement this method it will impact any other areas and what are the necessary things to be consider.?

please provide me some inputs.



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    author's profile photo Former Member
    Former Member
    Posted on May 22, 2013 at 04:39 PM

    HI Venkatesh,

    Please follow the path i am giving below for quota compensation (0416)


    spro-->pm-->pa-->payroll data-->Leave compensation-->Time quota compensation--> Define time quota compensation method's --> New entries.

    * Here we need to give esg,psg and need to create quota compensation method (ex-ZABC), and need to give quota type.(no need to maintain rule).


    Now we have to create one wage type (process will be same as basic), but in quota compensation no need to maintain entry permeability for ESG & PSG and wage type characteristics.

    * maintain processing calsses & valuation classes as per your requirement.


    Country Specific payroll-->indian payroll-->Time quota compensation--> assign wage types to the quotas to be compensated --> new entries.

    you need to maintain following fields here.



    *CO- Compensation method

    *Q- Quota number

    *C- (in this field you need to maintain =)

    * No need to maintain year

    * % factor - (how much % your client paying)

    * Wage type

    * Start date & End date.

    * Save the table

    Step -- 4

    * Go to Pa30- create record in infotype 416 (give method in subtype)

    * give the no. of days in the field compensate

    * save and run the payroll.

    Thanks & Regards

    G.Pradeep Kumar

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    • Former Member Venkatesh Orusu

      Hi venkatesh,

      Here % factor is nothig but how much percent you are paying to the employee for one day leave encashment. Is it 100% or 75% or as per the compnay policy.

      If your payroll caliculation is daybase then you have to mention 800%. And this % factor you can maintain in valuation calsses table also (V_512W_B)

      And you need to specify for the wagetype on which base it will be caliculate (Basic or hra or Basic&hra or Gross). you need to speicify that in processing classes table.



  • author's profile photo Former Member
    Former Member
    Posted on May 22, 2013 at 09:06 AM


    Normally leaveencash are paying F&F time ,but some cases we are paying middle also ,

    we can pay 2 types through it 0015 and it 0416 ,

    for quota compensation method it will not effect any others ..



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