Employee Purchase Leave based on financial year using Custom MDF Object

[Swapna21]

 Purchased leave allows employees to fund an additional period of leave through payroll deductions. In the setup, you designate the conditions for a purchase leave request, for example, how much or how often the employee can request to purchase leave.

We have a requirement as per the client the employee can purchase for below mentioned hours within the financial year.

Employee Purchase Leave 8 weeks – 304 hours

Employee Purchase Leave 4 week – 152 hours

Employee Purchase Leave 2 weeks- 76 hours

to start the configuration some permission needs to be granted. Detail of the permission is below.

Before creating Purchase Profile A deduction pay component is created for each request. The deduction can be a one-time deduction or a recurring deduction over a defined time period. This deduction pay component is added to the Time Account Purchase Profile setting

For recurring deduction, the setting for the pay component has Is Earning set to No, Recurring set to Yes, and Pay Component Type set to Number.

Note: A currency value must be selected for pay components. For Purchase Leave, the frequency is required and should be populated with a new, delivered frequency value of TDP or Total Deduction Period. TDP: This selection allows deductions to be evenly spread through the deduction period requested

Step-1: Create Time Account Purchase Profile through “Manage Data”

External Name: Enter name as per the Client requirement

Country/Region: Select the affected countries

Workflow Configuration: if approval is required for the profile, you select the workflow ID if not leave No Selection.

Allow users to select the Deduction Start Date:

• Yes, allows users to select a deduction start date at the time of submitting the request.
• No to set the Deduction Start Date as the Approval Date.

Equivalent Units:

• None allows this profile to request a purchase of leave for time in time account units, for example, hours or days.
• Weeks allow this profile to purchase leave in multiples of the user’s typical work week.

Deduction Type:

One-time - When the total purchase amount is a single deduction

Prorated – The total deduction for purchased leave is evenly split across all pay periods between the deduction’s start and end dates.

Deduction Schedule:

• Period in Months to allow employees to select the number of months for deduction to end.
• end date an employee can choose a Deduction end date.

Deduction Pay Components: Select deduction pay components previously created to assign to this profile.

Step-2 Create the Purchase leave validation Rules.

• As per the client requirement employee should select only 76 or 152 or 304 hours.
• The deduction starts and end dates are aligned with the payroll year, based on a configured lookup table that stores the financial year’s start and end dates.as shown below.

Step-3: Created the Error messages from Manage Data>>Message Definition.

Step-4: Configured a validation rule for above requirement.

Step-5: Created Time Account type

When configuring a Time Account Type for leave purchase, set the Account Creation Type to ‘Ad Hoc’, mark the Purchase Eligibility as ‘Eligible’, and assign the relevant Time Account Purchase Profile.

Step-6: As per the client requirement at the end of bookable period the PEP runs automatically, and the remaining balance will be payout the employees.

Step-5: Created the Time Type for Purchase leave and assign the Time account type.

Test Scenario:

Step-1

The employee initiates a Purchase Leave request by selecting the 'Purchase Time' time type in the system. They can then proceed by clicking "Create Purchase time request"

As per the defined business scenario, if an employee attempts to request more or less than 76 hours for Purchase Leave, the system triggers an error message prompting them to select only the allowed values 76, 152, or 304 hours.

As per the payroll year configuration, the deduction start date should be 1st September 2025 and the end date should be 31st August 2026. Since the employee selected a date outside this range, the system is triggering an error message instructing them to enter deduction dates in accordance with the defined payroll period.

When the employee selects the correct start date as per the provided instructions but chooses an incorrect end date, the system triggers an error message prompting them to update the end date in accordance with the defined payroll deduction period.

When the employee enters the correct purchase hours and selects deduction dates as per the defined instructions, the system does not trigger any error. The request is now valid and can be submitted successfully.

The employee has successfully received the purchased leave hours, and a recurring deduction has been created with an effective start date of September 1st, 2025, as per the configured payroll year settings.

Employee has applied Purchased leave of 38 hours

When employee terminated the remaining balance of purchase leaves cashout under Termination portlet

For purchased leave, any remaining balance at the end of the bookable period will be cashed out to the employee. We have run a simulation for the employee whose account is scheduled to close on 11 August 2026.