When terminating an employee, you will receive the error message 'You have not been configured for final leave balance' on the Leave page of the termination wizard if the Final Leave pay element isn't configured correctly or if it's been marked as Obsolete.
To resolve this issue:
Go to Setup and click Settings.
Click Module Settings, then Payroll Settings.
Click Pay Element and search for the element Final Holiday Pay.
Click the element and untick the Obsolete box.
Click Save.
Once these steps are completed, go back to the employee's profile in order to complete the termination process.