Final Pay Calculation

[Carina Julian]

Can someone clarify for me the correct way to calculate final pay when applying annual leave entitlement on a monthly basis. Our system is set up to give employees 1.667 days annual leave each month after 1 months service. In this particular case the person has already taken some of the current years entitlement.

Which is the correct way to calculate their final pay as I seem to get a different answers:
Option 1
Should we take the balance of their entitlement as at their last entitlement date ( which would be the month prior ie. started 8/8/07 therefore last entitlement added was 8/5/10)and then 8% on earnings since their last entitlement or
Option 2
Should we taken the number of days that were owing as at their last anniversary date ie 8/8/09 - take 8% on the earnings since then and deduct off the value of 2010 leave entitlement already paid out since then. In my example the person had 11.667 days owing as at 8/8/09 and has taken 21 days leave since then. Therefore they have already taken 9.33 days from the 2010 leave entitlement. When I deduct the value of those days taken from the 8% earnings I get a different figure from the Option 1 calculation. That difference is equivalent to almost 1 days pay. I am not sure why. The person has been on the same pay rate for the period and not had any LWOP.

Can anyone assist please

Thanks Carina