Hi SSMelbourne,

That is correct. You'll have to make sure to enter the hours in negative figure to adjust the annual leave hours. You can use the steps below:

1. On the pay run creation, click the employee name.
2. Click on Actions, and then select Adjust Leave. This will create a Leave Adjustment line, and in the Hours field, enter the negative hours of the accrued leave, and then Save.
3. When you finalise the pay run, the leave balances will apply.

For reference you can also check out this article on How to apply leave adjustments

Thanks for sharing your insights. Have a great day!