I’ve been thinking it would be great if paid leaves were recorded as liabilities. I found someone else had created this feature request in 2017. https://github.com/frappe/erpnext/issues/7388
This feature could work if the payroll module could supply each users current daily pay and expense account used, the leave allocation would then use this amount to create a journal entry to record the liability against the payroll expense at the time of allocation. Then, the payslip module would need to deduct from the liability instead of the expense when paid leave is taken. The tricky part is that the liability for outstanding leave would need to recalculated when the employees pay changes. Perhaps each time a payslip is generated would work.
In the feature request, they also asked for a way to have a custom calculation for leave allocation. This too would be great as many governments have their own ways of calculating vacation. I believe it would be difficult for ERPNext to support all the different methods for calculating leave.
Does anyone else think this worthy of time?