This article explains how negative balances are handled during the time-off update cycle. You will learn how the system compensates negative balances using accumulated hours and what happens when this option is enabled or disabled.
Overview
This setting determines how the system reacts when a time-off balance becomes negative at the end of the update cycle. Accumulated hours from the time-off counter are automatically used to cover negative balances. If the accumulated hours are insufficient, the counter itself can go negative.
How to use
- In your sidebar, go to Organisation
- Select employee and access Time Planning section within the employee portal
- Ensure rest days are properly defined for each employee
- Verify that all planning data is up to date — the system will use these rest days as the source of truth
Tips and best practices
- Review policies regularly to ensure the negative balance behaviour is aligned with internal HR guidelines.
- Communicate clearly with collaborators so they understand how negative balances affect their total time-off entitlement.
FAQ
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Can the negative balance exceed a specific limit when this option is enabled?
No. When enabled, negative transfers are unlimited, meaning there is no cap unless your organisation defines one operationally.
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Can I limit how negative the balance can go?
No. Factorial allows negative balances to transfer without limits. This is a built-in system behaviour and cannot be restricted.
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Can I disable negative balance transfers?
No, negative balances always transfer to the time-off counter when accumulated hours are insufficient.
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Does a negative balance affect future accruals?
Yes. Future accruals will first be used to compensate the negative balance before increasing the available time-off balance.
If negative balances are not transferring, check whether the update cycle has run or if the policy settings apply to the correct group of collaborators.
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