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Allow Approved Historical Overtime to be Included in the Next Payroll

Configure Indigo to allow approved historical allocations to be sent to payroll after their original posting period, ensuring late approvals are included in the next payroll run

Written by Matthew Calleja

Table of Contents

Overview

By default, overtime and other payroll allocation items must belong to the current payroll posting period. If an allocation is approved after its original posting period has closed, it cannot be processed in payroll.

This may not always meet your requirements, so Indigo provides a couple of setting configurations across Attendance and Payroll to allow historical allocations to be processed after approval. Once both settings are enabled, allocations approved after their original posting period can be included in the next payroll run.

🔑 Before you begin, you'll need all necessary permissions to modify both Payroll and Attendance settings.

Enabling Both Settings

In Payroll

  1. Go to Payroll & Leave > Settings > Payroll > Calculation Settings.

  2. Click the ✏️ Edit button at the top.

  3. Check the box labelled Disable Dates Validation for Basic Hours, Overtime and Pay Items.
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  4. Save your changes by clicking the ✔️ check mark button at the top.

In Attendance

  1. Go to Attendance > Settings > Attendance > Allocations.

  2. Click Edit.

  3. Scroll to the Send to Payroll section.

  4. Tick the box labelled Allow late approvals of pending allocations.
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  5. Save your changes.

Result

When both settings are enabled:

  • An allocation can remain pending for an extended period.

  • A manager can approve the allocation after its original payroll period has closed.

  • The approved allocation is included in the next available payroll instead of being rejected because it belongs to an earlier posting period.

Use Case Example (click to expand)

An employee submits an overtime request in January. The request remains pending until July, when the employee's manager approves it.

With both settings enabled:

  • The overtime is accepted by Payroll.

  • The overtime is included in the next payroll run.

Without these settings enabled, Payroll would reject the allocation because it falls outside the current posting period.

🤓 Good to know, before you go!

  • The payroll setting is an existing feature that allows payroll validation to be bypassed for historical overtime and pay items.

  • The attendance setting works with the payroll configuration to allow approved pending allocations to flow into the next payroll run.
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⚠️ Make sure you've enabled both settings! Otherwise, this functionality won't work! ⚠️

Related articles:

How do I Approve Attendance Exception Allocations?

Reminder Emails for Pending Allocation Requests

Automatically Reject Overdue Allocation Requests

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