The Encashment column in Leave Cutoff during Leave Closing is used to specify the number of unused leave days that will be converted into cash and paid to the employee. These leave days are not carried forward and will instead be included as a leave encashment payment, typically in the January payroll process.

Example:

An employee has 10 days of unused Annual Leave at year-end:

• 5 days are carried forward using the CF (Carry Forward) column.

• 3 days are entered in the Encashment column.

• 2 days are forfeited based on company policy.

The 3 encashed days will be converted into a cash payment and reflected in the January payroll.