Time Quota Compensation (Infotype 0416) 
Definition
Time quota compensation allows a financial remuneration of time off entitlements that have not been deducted by absences.
Use
You can use the Time Quota Compensation infotype (0416) to remunerate employees’ time off entitlements. When the compensations are recorded, the employee’s remaining quota or leave that has not been deducted or compensated is reduced by the specified amount.
The infotype records are evaluated in the gross part of payroll accounting. The changes to the quota remainder are marked in the infotype when the compensation is processed.
Structure
Various methods for compensating quota remainders are defined in Customizing. They simplify the recording of quota compensation. The following methods are used, depending on the subtype of the infotype:
Automatic compensation
In Automatic compensation, the quota compensation is controlled by the Customizing settings, depending on the specified subtype. You only need to enter the value to be compensated. Depending on the quota type used for the deduction, the number specifies a value in days or hours.
Free compensation
You can normally use a subtype of the Quota Compensation infotype (0416) to carry out a free compensation. For free compensation, you enter the quota number to be compensated, and you can also specify methods to be used for the compensation. You can choose from the following methods:
Two options are available for automatic compensation:
You use a deduction rule for the compensation.
The R/3 System selects the quotas to be compensated according to the Customizing settings.

You specify a quota type for the compensation.
In this case, the R/3 System selects the quotas whose deduction period next expires from all the quotas of this type.
The list of absence quotas shows which quotas can be compensated. It displays all the employee’s time off entitlements that are available for deduction on the current day.
Payroll accounting calculates the monetary value that an employee receives for a compensated quota. In manual compensation, you can control this accounting procedure by specifying a wage type or a wage type/amount for a compensated quota. In this case, the rules specified in Customizing for the selection or valuation of a wage type are overridden.
Integration
You can only use this infotype if you use the R/3 Payroll Accounting (PY) component.