Some organizations allow remaining vacation balance from one year to carry over into the next, resulting in overlapping Vacation Entitlement periods.

Example configuration:

• Vacation 2024: Valid until Mar 31, 2025
• Vacation 2025: Valid from Jan 1, 2025

When deduction is required, the system must always consume the oldest valid entitlement first.

Business Purpose

• Prevents balance expiration during overlapping validity periods
• Provides predictable and rules-based deduction handling
• Minimizes the need for manual adjustments

System Behavior

• All overlapping entitlement allocations of the same Entitlement Type are evaluated together
• Deduction follows the earliest Validity Start date (oldest-first prioritization)
• When an older entitlement is fully deducted or no longer valid, remaining deduction automatically continues from the next valid entitlement