Sometimes the dashboard users may face an issue like 'custom leave is not working although it is created'. This is because you might forget to activate this leave in policy. So, you need to activate it.
1. Go to 'Setting'.
2. Click on 'Policy' and choose the policy in which inactive leave type is existed.
3. Click on 'Leave' and enter leave type you want activate.
4. Scroll down and enable 'Temporary disable this ... leave' to activate.
5. Click on 'Confirm'.
6. Then click on 'Update the Policy' and 'Confirm'.
Here is the tutorial video how to do.