Payrun Error : Leave Encashment / EOS Leave Encashment Recovery preferences need to be setup properly

When creating a payrun, if you receive the error “Leave Encashment preferences need to be set up properly” or “Leave Encashment Recovery preferences need to be set up properly,” this indicates that the Leave Encashment configuration has not been set for the location of the affected employee.

Steps to Resolve

1. Identify the Employee’s Location
   
   • View the profile of the affected employee and note their assigned location.
     
     
2. Navigate to the Leave Encashment Settings
   1. Go to Settings → Preferences → Business Payroll.
      
      
      
      
   2. Select EOS Leave Encashment.
      
      
3. Verify and Configure Settings
   1. Check if the settings exist for the employee’s location.
      
      
      
      
   2. If missing, configure the following:
      • Eligibility terms (e.g., after probation or after 1 year of service).
      • Whether the leave term should be prorated or full.
      • Calculation based on Gross or Basic salary.
      • Daily rate calculation method.
      • Pay group that should process this calculation.
        
        
        
        
   3. Click Save once configuration is complete.
      
      
4. Requery the Payrun
   1. Requery the payrun for this specific employee.
   2. The failure should now be cleared.
      
      

      Notes

      If the employee’s country is not listed under EOS Leave Encashment and customization is unavailable, please raise a request by emailing help@yomly.com.
      Include the country name in your request — the support team can either add the country or create a custom pay category for it.