Overview

When Scheduled Conversion Leave is set to YES, the system applies a specific logic to determine:

  • How many leave credits are retained

  • How many are converted to cash

  • How many are forfeited

This logic applies only during the scheduled conversion process.


Key Rules

1. Max Credit Check

  • The system checks the employee’s remaining leave balance against the Max Credit.

  • Any credits exceeding the Max Credit are considered excess.

2. Conversion vs Forfeiture

  • Excess credits are processed in the following order:

    1. Convert to cash, up to the Max Convertible Credits

    2. Any remaining excess after conversion is forfeited

3. Recurring Credit Behavior

  • When Scheduled Conversion = YES:

    • Recurring credits are added first

    • Recurring credits do NOT check Max Credit

    • Recurring credits do NOT trigger conversion on their own

  • Conversion logic is applied after computing the total remaining balance.


Computation Flow (High Level)

  1. Compute Remaining Leave Balance

  2. Add Recurring Credits (if on the same date)

  3. Compare total balance with Max Credit

  4. Compute Excess

  5. Convert excess to cash (up to Max Convertible Credits)

  6. Forfeit any remaining excess

  7. Final leave balance = Max Credit


Scenarios & Expected Results

Scenario 1: Remaining Leave Credit is Over Max Credit

Configuration

  • Remaining Leave Credits: 30

  • Max Credit: 15

  • Max Convertible Credits: 15

Computation

  • Excess = 30 − 15 = 15

  • Convertible = 15

Result

  • Convert to Cash: 15

  • Forfeit: 0

  • Final Leave Credits: 15

Scenario 2: Remaining Leave Credit is Lower Than Max Credit

Configuration

  • Remaining Leave Credits: 5

  • Max Credit: 15

  • Max Convertible Credits: 15

Result

  • Excess: 0

  • Convert to Cash: 0

  • Forfeit: 0

  • Final Leave Credits: 5

Scenario 3: Remaining Leave Credit Equals Max Credit

Configuration

  • Remaining Leave Credits: 15

  • Max Credit: 15

  • Max Convertible Credits: 15

Result

  • Excess: 0

  • Convert to Cash: 0

  • Forfeit: 0

  • Final Leave Credits: 15

Scenario 4: Max Credit is 0 with Remaining Leave Credits

Configuration

  • Remaining Leave Credits: 30

  • Max Credit: 0

  • Max Convertible Credits: 15

Computation

  • Excess = 30 − 0 = 30

  • Convertible = 15

Result

  • Convert to Cash: 15

  • Forfeit: 15

  • Final Leave Credits: 0

Scenario 5: Recurring Credits on the Same Date as Scheduled Conversion

Configuration

  • Scheduled Conversion: YES

  • Remaining Leave Balance: 15

  • Recurring Credits: 15

  • Max Credit: 15

  • Max Convertible Credits: 15

Computation

  1. Total Balance = 15 (remaining) + 15 (recurring) = 30

  2. Excess = 30 − 15 = 15

Result

  • Convert to Cash: 15

  • Forfeit: 0

  • Final Leave Credits: 15


Important Notes

  • Recurring credits are always added first

  • Conversion is triggered only by excess over Max Credit

  • Final leave balance after scheduled conversion will never exceed Max Credit

  • If Max Credit is 0, all remaining credits are either converted or forfeited