Wasting $157K on Manual Leave Tracking? Manage Allocation & Accrual in Odoo 18

Company has 247 employees. HR manually tracks vacation days in Excel. Employee hired Jan 1: Gets 15 days annual leave. HR types into spreadsheet. Employee uses 3 days in March. HR updates: 15 - 3 = 12 remaining. Another employee accrues 1.25 days monthly (15 days ÷ 12 months). HR forgets to add March accrual. Employee requests leave: "You have 11 days." Employee: "No, I accrue monthly. Should be 12.25 days." HR recalculates manually. Takes 20 minutes. Happens 47 times monthly (different accrual rates: monthly, biweekly, based on tenure). Employee with 5 years tenure gets 20 days. New hire gets 15 days. HR forgets which employee has which rate. Gives 5-year employee only 15 days. Employee complains. HR fixes manually. Annual reconciliation: 247 employees × manual calculation = 87 hours. Errors in 23% of allocations (wrong accrual rate, forgot to add monthly increment, double-counted days). Compliance issue: Labor law requires accurate leave tracking. Audit finds errors. Fine: $47,000. Annual cost: $87K HR time + $47K fine + $23K payroll errors (paid for unused days due to wrong balance) = $157K leave chaos.

Odoo 18 Time Off fixes this: Create accrual plans (1.25 days/month, 15 days/year, tenure-based rates). Assign to employees (manual or bulk). System auto-accrues (monthly, biweekly, daily). Real-time balance (employee sees accurate days). Leave requests auto-check balance (prevent overuse). Carryover rules (unused days roll over or expire). Maximum accrual caps (prevent unlimited accumulation). Milestone transitions (5 years = upgrade to 20 days/year automatically). Manager approval workflow. Reports: Who's taking leave when, balance by employee. Compliance: Audit trail, accurate records. Here's how to manage leave allocation and accrual plans in Odoo 18 so you stop losing $157K annually to manual leave tracking chaos.

What Leave Allocation & Accrual Does

Automated leave management: Create accrual plans → Assign to employees → Auto-accrue over time → Real-time balance tracking → Carryover rules → Manager approval → Compliance reporting.

Step 1: Create Accrual Plan

1. Go to Time Off → Configuration → Accrual Plans
2. Click New
3. Configure accrual plan:
   • Name: "Standard PTO Plan" or "Tenure-Based Vacation"
   • Accrued Gain Time: When employee starts accruing
     • At the start of accrual period (accrues on day 1)
     • At the end of accrual period (accrues after period completes)
   • Carry-Over Time: When unused days roll over
     • At the start of the year (Jan 1)
     • At the allocation date (anniversary of hire date)
     • Other (custom date)
   • Based on worked time: Enable if accrual based on hours worked
     • Excludes unpaid leave, absences from accrual calculation
     • Only counts actual worked days
   • Milestone Transition: When employee moves to next accrual tier
     • Immediately (upgrade mid-period)
     • After this accrual period (upgrade at period end)

Step 2: Create Accrual Milestones (Rules)

1. In accrual plan form, click New Milestone in Rules section
2. Configure milestone:
   • Employee Accrual:
     • Amount: 1.25 days (or hours)
     • Frequency: Monthly, Biweekly, Weekly, Daily, Hourly, Yearly, Twice a month, Twice a year
     • Example: "1.25 days every month" = 15 days/year
   • Cap accrued time: Enable to set maximum balance
     • Type: Days or Hours
     • Maximum: 30 days (prevent unlimited accumulation)
     • Once cap reached, accrual stops until employee uses days
   • Milestone reached: When this rule activates
     • 0 days = Immediate (starts at hire)
     • 90 days = After probation
     • 1 year = After first year
     • 5 years = Tenure upgrade
   • Carryover: Unused days handling
     • Not at all (reset to 0 yearly, lose unused days)
     • Carryover accrued time (unlimited rollover)
     • Maximum carryover (e.g., max 5 days rollover, rest lost)
3. Click Save & Close or Save & New to add more milestones

Example Accrual Milestones

Step 3: Allocate Leave to Single Employee

1. Go to Time Off → Management → Allocations
2. Click New
3. Fill allocation form:
   • Description: "2024 Annual PTO Allocation"
   • Time Off Type: Select type (Paid Time Off, Sick Leave, etc.)
   • Allocation Type:
     • Regular Allocation: One-time fixed amount (e.g., 15 days given immediately)
     • Accrual Allocation: Gradual accrual based on accrual plan

For Regular Allocation:

1. Validity Period: Start and end dates (e.g., Jan 1 - Dec 31, 2024)
2. Allocation: Number of days/hours (e.g., 15 days)
3. Employee: Select employee
4. Click Save
5. Employee immediately has 15 days available

For Accrual Allocation:

1. Accrual Plan: Select plan created in Step 1
2. Start Date: When accrual begins (e.g., hire date)
3. Run until: Optional end date (or leave blank for ongoing)
4. Employee: Select employee
5. Click Save
6. Employee accrues days automatically based on plan schedule

Step 4: Bulk Allocate to Multiple Employees

1. Go to Time Off → Management → Allocations
2. Click Actions → Multiple Requests
3. Configure bulk allocation:
   • Mode: How to select employees
     • By Employee: Select specific employees (multiple individuals)
     • By Company: All employees in selected company
     • By Department: All employees in selected department (e.g., Sales, Engineering)
     • By Employee Tag: All employees with specific tag (e.g., "Full-Time", "Contract")
   • Time Off Type: Select leave type
   • Allocation Type: Regular or Accrual
   • Validity Period / Start Date: Dates
   • Allocation: Days/hours (for regular) or Accrual Plan (for accrual)
4. Click Create Allocations
5. All selected employees receive allocation

Example Bulk Allocation

Step 5: Employee Requests Allocation Increase

1. Employee logs into Odoo
2. Goes to Time Off dashboard
3. Clicks New Allocation Request
4. Fills request:
   • Time Off Type: Select type
   • Allocation: Days/hours requested (e.g., 5 additional days)
   • Reason: Justification ("Worked extra hours during peak season")
5. Submits request
6. Manager receives notification
7. Manager approves or rejects
8. If approved, days added to employee balance

How Accrual Works (Behind the Scenes)

Monthly Accrual Example

Carryover Rules Explained

Not at all (Use It or Lose It)

• Dec 31: Employee has 8 unused days
• Jan 1: Balance resets to 0
• All 8 days lost
• Encourages employees to use time off

Carryover Accrued Time (Unlimited)

• Dec 31: Employee has 8 unused days
• Jan 1: All 8 days carry over
• New balance: 8 days (plus new accruals start)
• Can accumulate indefinitely (if no cap)

Maximum Carryover (Partial Rollover)

• Carryover limit: 5 days maximum
• Dec 31: Employee has 8 unused days
• Jan 1: 5 days carry over, 3 days lost
• New balance: 5 days
• Balances encouragement to use days with flexibility

Employee Leave Balance Dashboard

1. Employee logs into Odoo
2. Opens Time Off app
3. Dashboard shows:
   • Current balance per leave type (15.5 days PTO, 5 days Sick)
   • Pending requests (awaiting approval)
   • Upcoming time off (approved dates)
   • Request new time off button
   • Request allocation increase button
4. Real-time updates (balance changes immediately when approved)

Manager Approval Workflow

1. Employee submits leave request
2. Manager receives notification (email + Odoo)
3. Manager reviews:
   • Employee's current balance
   • Days requested vs available
   • Team coverage (who else is off?)
   • Request reason/justification
4. Manager clicks Approve or Refuse
5. If approved:
   • Balance auto-decremented
   • Calendar marked (team can see coverage)
   • Employee notified

Reporting & Analytics

Time Off Analysis

1. Go to Time Off → Reporting → Analysis
2. View metrics:
   • Total days taken per employee
   • Unused balance per employee
   • Department time off trends
   • Peak vacation months
   • Carryover liability (how many days owed)
3. Filter by date, department, leave type, employee

Compliance Reports

• Audit trail of all allocations
• Accurate balance records for labor law compliance
• Export to Excel for external audits
• Historical data preserved (never deleted)

Real-World Impact

FAQs