| Availability |
Odoo Online
Odoo.sh
On Premise
|
| Odoo Apps Dependencies |
•
Discuss (mail)
• Employee Contracts (hr_contract) • Invoicing (account) • Time Off (hr_holidays) • Employees (hr) • Calendar (calendar) |
| Lines of code | 704 |
| Technical Name |
mfx_leave_encashment |
| License | OPL-1 |
| Website | https://macrofix.com |
| Versions | 17.0 18.0 19.0 |
| Availability |
Odoo Online
Odoo.sh
On Premise
|
| Odoo Apps Dependencies |
•
Discuss (mail)
• Employee Contracts (hr_contract) • Invoicing (account) • Time Off (hr_holidays) • Employees (hr) • Calendar (calendar) |
| Lines of code | 704 |
| Technical Name |
mfx_leave_encashment |
| License | OPL-1 |
| Website | https://macrofix.com |
| Versions | 17.0 18.0 19.0 |
Why Leave Encashment?
Employees accumulate unused leave balances throughout the year. Instead of letting those days expire, Leave Encashment lets them convert unused leave into cash — calculated automatically from their contract wage and work schedule. The entire process, from request to journal entry, is handled within Odoo.
Key Features
Everything you need for leave encashment in one module
Encashable Leave Types
Mark specific leave types as encashable. Only those types appear in the request form.
Auto Rate Calculation
Per-day rate computed from contract wage and work schedule. Zero manual input.
Approval Process
Submit → Approve/Reject flow with manager notifications and activity tracking.
Accounting Integration
Auto-creates draft journal entries on approval. Accountant reviews and posts.
Balance Validation
Validates leave balance at submission AND approval to prevent over-encashment.
Chatter & Activities
Full audit trail with chatter. Manager gets activity notification on new requests.
Module Screenshots
See the actual Odoo 18 interface in action
ENCASHMENT LIST VIEW
Color-coded status badges, amount totals, and search filters for easy management.
ENCASHMENT FORM — DRAFT STATE
Employee details, auto-calculated encashment amount, and reason field. Accounting section visible to admins only.
ENCASHMENT FORM — APPROVED STATE
Approved request showing journal entry link, approval details, and chatter audit trail.
LEAVE TYPE CONFIGURATION
New "Allow Encashment" toggle added to the existing Leave Type form.
SETTINGS — DEFAULT ACCOUNTS
Configure default journal and accounts under Settings → Employees to auto-fill new requests.
MENU STRUCTURE
Integrated under Time Off with sub-menus: My Requests, All Requests, Pending Approvals.
Mark Leave Types as Encashable
New "Allow Encashment" toggle on each leave type
Only encashable types appear in the request form
Control exactly which leave types can be encashed (e.g., Earned Leave yes, Sick Leave no)
Seamlessly added to the existing Leave Type form
Automatic Per-Day Rate Computation
Per-Day Rate = Monthly Wage ÷ Working Days per Month
Working days derived from employee's work schedule (Mon-Fri = 21.67 days/month)
Encashment Amount = Days to Encash × Per-Day Rate
Wage pulled from active contract — no manual entry
Supports different schedules (4-day, 5-day, 6-day weeks)
Single-Level Approval with Full Automation
Draft → Submitted → Approved / Rejected state flow
Manager receives activity notification when request is submitted
On approval: leave balance auto-deducted + journal entry created in draft
Reset to Draft available for resubmission
Approve/Reject buttons restricted to managers only
Automatic Journal Entries on Approval
Debit: Employer Leave Encashment Expense account
Credit: Employee Leave Encashment Payable account
Journal entry created in draft on approval — accountant reviews and posts
Quick-link stat button to view the journal entry from the request form
Accounting section visible only to Account Managers & Admins — employees see a clean form
Dual-Stage Balance Validation
Balance validated at submission — prevents requesting more days than available
Balance re-validated at approval — catches if leaves were consumed meanwhile
Active contract required — no contract, no submission
Accounting fields validated at approval — clear error message guides to the right person if missing
Days to encash must be greater than zero (constraint enforced)
Configurable Defaults in HR Settings
Default Journal, Expense Account, and Payable Account in Settings → Employees
Defaults auto-fill new requests when configured in Settings
Overridable per-request — different accounts per encashment if needed
Accounting section hidden from regular employees — only Account Managers and System Admins can configure
Full Chatter Integration & Activity Tracking
Every state change logged in chatter with tracking
Manager receives To-Do activity when request is submitted
Activities marked as done on approve/reject
Key fields tracked: Employee, Leave Type, Days, Amount, Status
How It Works
4 simple steps from configuration to payout
Configure
Mark leave types as encashable. Set default accounts in Settings.
Request
Employee picks leave type, enters days. Amount computed instantly.
Submit
System validates balance and contract. Manager notified via activity.
Approve
Manager approves. Leave deducted + draft journal entry created for review.
Security & Access Control
Two roles with proper record rules and access rights
Encashment Officer
For employees and HR officersEncashment Manager
For HR managers and adminsMenu Structure
Integrated under the Time Off application
Quick Setup Guide
Get started in 3 simple steps
Enable Encashable Leave Types
Go to Time Off → Configuration → Leave Types, open the desired leave type and enable the "Allow Encashment" toggle.
Set Default Accounts (Recommended)
Go to Settings → Employees → Leave Encashment Defaults and configure a default Journal, Expense Account, and Payable Account. These will auto-fill on every new encashment request.
Ensure Active Contracts
Employees must have an active (Running) contract with a wage set. The encashment rate is derived from contract wage and the employee's work schedule.
Technical Details
MODELS
hr.leave.encashment (new)
hr.leave.type (inherited)
res.config.settings (inherited)
DEPENDENCIES
hr_holidays (Time Off)
hr_contract (Contracts)
account (Invoicing)
mail (Discuss)
HIGHLIGHTS
Sequence: ENC/YYYY/XXXXX
License: OPL-1
Multi-company: Supported
Unit tested: Yes
Need Help or Customization?
Our team is ready to assist with installation, configuration, or custom feature requests.
Macrofix • Odoo Development Partner
Odoo Proprietary License v1.0 This software and associated files (the "Software") may only be used (executed, modified, executed after modifications) if you have purchased a valid license from the authors, typically via Odoo Apps, or if you have received a written agreement from the authors of the Software (see the COPYRIGHT file). You may develop Odoo modules that use the Software as a library (typically by depending on it, importing it and using its resources), but without copying any source code or material from the Software. You may distribute those modules under the license of your choice, provided that this license is compatible with the terms of the Odoo Proprietary License (For example: LGPL, MIT, or proprietary licenses similar to this one). It is forbidden to publish, distribute, sublicense, or sell copies of the Software or modified copies of the Software. The above copyright notice and this permission notice must be included in all copies or substantial portions of the Software. THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT. IN NO EVENT SHALL THE AUTHORS OR COPYRIGHT HOLDERS BE LIABLE FOR ANY CLAIM, DAMAGES OR OTHER LIABILITY, WHETHER IN AN ACTION OF CONTRACT, TORT OR OTHERWISE, ARISING FROM, OUT OF OR IN CONNECTION WITH THE SOFTWARE OR THE USE OR OTHER DEALINGS IN THE SOFTWARE.
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