Which calendar do you need?

This one, is to create an annual limit:

If you want to have the absence limit, your absence group has to be set up like this:
 

The calendar type ist used here and you have to enter a limit definition, may be also details.
 

This setup in the absence is for the use in my absence calendar.

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To create the limit you “Generate Limit”
 

This could be done for an individual employee or for a template.

Thanks @JONEDE ,how does wage codes are mapped to absence type and linked to payroll foraccruals.

You link wage codes to the absences in tab TA Association.
In the wage code you can set the transfer to payroll.

Thanks @JONEDE  , would like to know how the wage code will reflect the payroll and what are the available options for setting it up.

In Wage Codes you have the Wage Type Time and a wage Type Payroll (I only worked with German Payroll, abd as the help says, this is only necessary for IFS-Payroll, we don’t need it). 

The important setting is Transfer option.

Only wage codes with an option other than “No transfer” will be transferred.

Maybe you need an absence or an absence period or for payment you may group the by org code for increments or wage hours.

The transfer itself is done through the PAYINT Payroll Interface (this is one moduel of IFS).

If you don’t have one of these third party payroll products, you will need to have an idividual payroll interface or one of these interfaces gives an output, your third party product could use.

What these hours or absences will do in your payroll product will be set up in the payroll system itself, like how many money is paid for one hour, how many taxes have to be paid, or is the absence vacation or illness or any othe sort of absence.