This page explains the Offset Functionality in HR for Dynamics. This functionality works automatically in the system.
You don't have to do anything, this tutorial page is for your information only.
How the balancing of leave entitlements works
Objective
What is this?
This functionality will balance out negative remaining leave entitlements with positive existing leave entitlements.
This process works automatically in the system, the HR Manager does not need to take any action.
For example, if an employee overbooked his leave entitlement and later receives a new leave entitlement, or if a negative remaining entitlement was carried forward to the next fiscal year, the new leave entitlement would first be used to offset the negative entitlement and then the remaining entitlement can be used for requesting leave.
This process works automatically in the system, the HR Manager does not need to take any action.
For example, if an employee overbooked his leave entitlement and later receives a new leave entitlement, or if a negative remaining entitlement was carried forward to the next fiscal year, the new leave entitlement would first be used to offset the negative entitlement and then the remaining entitlement can be used for requesting leave.
| Balancing a negative entitlement (employee takes more vacation days than his entitlements allows) with an additional entitlement | Balancing a carried forward negative entitlement with a newly rolled out annual leave |
| This will occur when the employer manually adds a new entitlement to counter balance the negative amount (the Manager grants more days of vacation). | Every new fiscal year, when the employee receives the new entitlements (as per their Employment Term), the offset calculation will balance out against the negative amount from the previous fiscal year. |
Prerequisites
- Employees must have a valid Employment Term
- Employees must have Leave Entitlements connected to their Employment Term
- Employees must have a valid license assigned
Example: Overbooking a Leave Entitlement
The employee Anna Smith has a leave entitlement for the absence type Vacation for 28 days for the current year 2023. For this year she plans to go on a long summer holiday overseas. Therefore, she makes a leave request from 1 July 2023 to 9 August 2023 which uses up her whole vacation entitlement of 28 days.
While she is on holiday her flight back home gets cancelled and the next flight is only available in 5 days. Therefore, she has to extend her vacation. Her HR Manager approves the request.
Now Anna has taken 33 days of leave and her leave entitlement with 28 days is overbooked by 5 days.
While she is on holiday her flight back home gets cancelled and the next flight is only available in 5 days. Therefore, she has to extend her vacation. Her HR Manager approves the request.
Now Anna has taken 33 days of leave and her leave entitlement with 28 days is overbooked by 5 days.
What happens to Anna's leave summary?
As you can see, the vacation entitlement with 28 days is not overbooked. Instead, a new entitlement is created automatically, with 0 days entitlement, and containing the overbooked amount of days. Also, this means that a leave allocation is created for every overbooked leave request that automatically creates a new leave entitlement with the amount of zero.
| Absence Type | Entitlement | Taken | Remaining |
| Vacation (Entitlement) | 28 | 28 | 0 |
| Vacation (Overbooked Amount) | 0 | 5 | -5 |
To find out how offsetting a negative leave entitlement with an additionally granted entitlement works, please go to Case A.
To find out what a case looks like when the negative leave is carried forward to the next fiscal year, please refer to Case B.
Case A: Offsetting a negative leave entitlement with an additional entitlement
After Anna is back from her holiday she has her annual performance review in autumn. In order to acknowledge her hard work, Anna's HR Manager grants her an additional 6 days of vacation. As she still owes the company 5 days from her prolonged summer holiday, she does not receive the full entitlement of 6 days. The new entitlement immediately gets offset against the negative remaining entitlement. Therefore, only one day that is leftover remains as vacation entitlement available for Anna to use.
| Absence Type | Entitlement | Taken | Offset | Remaining |
| Vacation | 28 | 28 | 0 | 0 |
| Vacation (Overbooked Amount) | 0 | 5 | 5 (from Additional Entitlement) | -5 (before Offset) -> 0 (after Offset) |
| Vacation (Additional Entitlement) | 6 | 0 | -5 (from Overbooked Amount) | 6 (before Offset) -> 1 (after Offset) |
Case B: Offsetting a carried forward negative leave entitlement with newly rolled out annual leave
For her prolonged summer holiday, Anna owes the company 5 days of leave. As explained above, this entitlement is set to "Transfer To New Period", so it will get carried forward to the next fiscal year 2024. At the beginning of the next fiscal year, her new annual leave entitlement of 28 days of vacation is rolled out. However, because she still owes the company 5 days from the year 2023…
| Absence Type | Entitlement | Taken | Remaining |
| Vacation (Overbooked Amount) | 0 | 5 | -5 |
… this entitlement will be carried forward and get offset against her newly rolled out annual leave entitlement of 28 days. As the negative leave is immediately deducted from her new positive entitlement, she can only use 23 days of vacation in 2024. This is what the leave summary looks like:
| Absence Type | Entitlement | Taken | Offset | Remaining |
| Vacation (new Entitlement) | 28 | 0 | -5 (from Overbooked Amount) | 28 -> 23 |
| Vacation (Overbooked Amount) | 0 | 5 | 5 (from new Entitlement) | -5 -> 0 |
As you can see, the positive entitlement of 28 days is used as "Offset From" and balances out Anna's negative remaining days.