How does the "include pending leave applications in projected balance calculation" leave setting work?

How does the "include pending leave applications in projected balance calculation" leave setting work?

Alert
This feature is available on Premier and Master editions

By default, only approved future leave applications are factored into the projected leave balance when an employee submits a leave request via ESS, or when a company level user processes a leave application on admin level.

The following setting may be activated to include pending leave applications in the projected leave balance. 

     Navigate > Config > Human Resources > Leave Administration > Leave Scheme Parameters > Advanced Options

      

InfoImportant
The projected leave balance will only decrease if the employee has any pending leave applications.