NaturalHR generally expects users to only archive Time off entries from the previous holiday, not the current one as this creates a grey area in the system. archived entries are no longer recognised as current year time off bookings so Employees are able to use the allowance that was previously 'taken' again, thereby granting that allowance back to their balance. When time off has not been archived and the Employee does not have enough allowance. they will receive an error message stating that they do not have enough allowance to make the request.
It's best to ensure that 'current' data, in other words data form this holiday year stays active until the year has passed when it can then be archived as it's no longer being referenced in the system or used in any calculations for time off allowances/proration.