1. Employee Leave Balance 

2. Salary Register 

Salary Register shows net pay and its components of employee(s) at a glance.

3. Monthly Attendance Sheet 

Monthly Attendance Sheet shows you the employee-wise attendance status. If you assign shifts to employees, this sheet will also show you shift-wise attendance for each employee.

If you do not want to see day-wise attendance, and get a summarized view of total absent, present, leave days, etc. you can switch to the summarized view:

This will show you:

• Total Present Days
• Total Absent Days
• Total Leave Days
• Total Holidays
• Total Unmarked Days
• Number of leaves taken per leave type
• Total Late Entries
• Total Early Exits

You can also view the report grouped by Department, Branch, Designation, or Employee Grade.

4. Vehicle Expenses Report 

To track and monitor Vehicle Expenses you can use the Vehicle Expenses report. This report gives a one-stop view of all your Vehicle Expenses month-wise.

5. Employee Exits 

> Introduced in Version 14

This report gives a summary of Employee Exits:

• Employee Details: Employee, Reports to, Date of Joining, Relieving Date, Department, Designation
• Exit Interview
• Interview Status (Pending/Scheduled/Completed)
• Final Decision (Employee Retained/Exit Confirmed)
• Full and Final Statement

This report also provides extra filters for:

• Interview Pending
• Questionnaire Pending
• FnF Pending

Users can set up auto email reports on the above filters to make pending exit tracking easier.

6. Employee Birthday 

Employee Birthday Report shows month-wise birthdays of your Employees.

7. Employee working on a holiday 

Employee Holiday Attendance shows the list of Employees who attended on Holidays.

8. Bank Remittance Report 

This report helps you to track bank transactions of payroll entries between companie(s) and employees. It shows the transaction between the bank accounts of the Company and the Employee with the Payment Date.

9. Loan Repayment Report 

Loan Repayment Report allows you to keep a track of loans by showing the loan amount, interest, payable amount, and EMI. It also shows the paid and outstanding amount.

Any user with role, “Leave Approver” should be only able to access leave applications of those employees that belong in their department. This is a common use-case in most companies, and with some quick configurations, we can achieve it in HR.

In company “SX4”, let’s consider Chris as the Leave Approver for department, “Research And Development”. With this configuration, Chris will only be able to view Leave Applications raised by his department.

1. Under Role Permissions Manager, provide this role with access of Department DocType

2. Create the user in HR with Role as “Leave Approver”, and Employee In our example, this is Chris.

3. Now, create the necessary user permissions as per Company, Department, and Employee.

While adding the “Employee” permission for Chris, just keep Leave Application unchecked, so that Chris has access to only view other employees

4. Department: Set a “Leave Approver” in the Department master

——————————————————————————————————————-

Now, let’s say, we have an employee called Pepper who works in the “Research and Development” Department.

6. Pepper fills in a leave application.

7. When the Leave Approver, Chris, logins, he can only access the leaves raised by employees of his department.

8. Meanwhile, when we login via System Manager, there are few other Leave Applications in the list, too.

PS. We have assumed that the reader knows how to manage different leaves and allocations in HR. To explore that again, click here

Thanks for your time! 😉

Using the Attendance Request, employees can submit their attendance request for the days when their attendance wasn’t marked due to various reasons such as on-site duty or work from home. Attendance Request can also be used for Attendance Regularization to overwrite existing attendance records.

To access Attendance Request, go to:

> Home > Human Resources > Attendance > Attendance Request

1. Prerequisites 

Before creating an Attendance Request, it is advised that you create the following first:

• Employee

2. How to create an Attendance Request 

1. Go to Attendance Request list, click on New.
2. Select Employee who wants to submit the Attendance Request.
3. Select From Date and To Date of Attendance Request.
4. Select Reason and enter Explanation (optional).
5. Save and Submit.

> Note 1: You can check the ‘Half Day’ checkbox and enter the Date in case the attendance is for Half Day.

> Note 2: On submission of the same, Attendance documents will be created for the days you mentioned as shown.

As seen below, respective Attendance records are linked with the submitted Attendance Request.

If you cancel the Attendance Request, the linked Attendance documents created will be cancelled as well.

3. Features 

3.1 Overwrite an existing Attendance record 

Consider a scenario where the auto-attendance tool marked an employee as Absent. If the employee wants to rectify their attendance, they can raise a request. On submission, the Attendance record will be updated:

The submission can be controlled via workflows to undergo approvals.

3.2 Request for Attendance in bulk 

Employees can also request for attendance for an entire month or week. On submission, attendance marking is skipped for holidays or leave days.

Attendance warnings are shown on the request dashboard for the same:

This tool helps you to upload bulk attendance from a csv file.

To upload the attendance go to:

> Home > Human Resources > Attendance > Upload Attendance

1. Prerequisites 

Before uploading bulk Attendance record, it is advised that you create the following first:

• Employee

2. How to upload attendance in bulk 

1. Enter Attendance From Date and Attendance To Date.
2. Click on ‘Get Template’ button. It will download a csv file with the Employee Details as shown.
3. Enter the Status (Present / Absent) of the Employee for the selected dates.
4. Save the file.
5. Upload the saved file.

Once the bulk attendance is uploaded, respective attendance records will be created.

Loan Application is a document which contains the information regarding the Loan Applicant, Loan Type, Repayment Method, Loan Amount and Rate of Interest.

Employee can apply for loan by going to:

> Human Resources > Loan > Loan Application

1. Prerequisites 

Before creating a Loan Application, it is advisable to create the following documents:

• Employee
• Loan Type

2. How to create a Loan Application 

1. Go to: Loan Application > New.
2. Enter the Applicant name.
3. Enter loan information such as a Loan Type, Loan Amount and Required by Date.
4. Select the Repayment Method and based on loan information, information such as Total Payable Amount and Interest will be calculated.
5. Save and Submit.

   

3. Features 

3.1 Repayment Method 

There are two types of Repayment Methods in Loan Application:

1. Repay Fixed Amount Per Period 

• Enter the Monthly Payment Amount.
• Save.
• Once saved, based on the Rate of Interest, the Total Payable Interest and Total Payable Amount will be calculated along with Period in Months.
• Submit.

  

2. Repay Over Number Of Periods 

• Enter the Repayment Period in Months.
• Save.
• Once saved, based on the Rate of Interest, the Total Payable Interest and Total Payable Amount will be calculated along with Monthly Repayment Amount.
• Submit.

  

An Appraisal Cycle is a defined period of time during which the overall performance of an employee is assessed.

To create an Appraisal Cycle, go to:

Home > Human Resources > Performance > Appraisal Cycle

1. Prerequisites 

Before creating an Appraisal Cycle, you should create Appraisal Templates for different designations.

You can link them in the Designation master for fetching them automatically in the cycle or manually select relevant templates in the Appraisees child table.

2. How to create an Appraisal Cycle 

1. Go to the Appraisal Cycle list, and click on New.
2. Enter the Cycle Name.
3. Select the Company and set the Start and End dates.
4. Select the KRA Evaluation Method:
   • Automated Based on Goal Progress (Default): Your KRA/Goal score will be automatically calculated based on your goal completion linked to that KRA. You can read more about here.
   • Manual Rating: You can choose to rate Goals/KRAs manually. This is the original evaluation method used until v13.

   

3. Actions 

3.1 Create Appraisals 

You can create appraisals in bulk from the Appraisal Cycle.

1. In the “Applicable For” tab, set relevant filters to fetch the employees included in this cycle. You can choose to create separate cycles for a particular Branch, Department, or Designation. Ex: Engineering could have an yearly cycle but Sales might need a half-yearly cycle.
2. After setting the filters, click on the Get Employees button and save. This will fetch the employees based on the set filters.
3. You can check the Employees table to find the fetched employees. You can add more employees to be included in the cycle manually by clicking on the Add Row button.
4. Click on the Create Appraisals button. This will create all the Appraisal documents for the selected employees.
5. Click on Start button to start the cycle.

If an employee joins after the cycle has already started, you can:

• Create an Appraisal document for them separately and select the cycle.
• Or, add rows for new employees in the cycle’s Employees child table, save and click on Create Appraisals again. This will create appraisals for the newly added employees.

3.2 View Goals 

With this button, you can view the goals linked to the cycle. This button will navigate you to the Goal Tree filtered by the Appraisal Cycle.

4. Features 

4.1 Appraisal Stats 

The Stats section in the cycle will give you an overview of:

• Appraisees: The number of appraisees included in the cycle
• Self Appraisal Pending
• Employees without Feedback
• Employees without Goals

An appraisal is a process in which an employee’s performance is documented and evaluated.

To create an Appraisal Cycle, go to:

Home > Human Resources > Performance > Appraisal

1. Prerequisites 

Before creating an Appraisal, you should create the following:

• Appraisal Template
• Appraisal Cycle

2. How to create an Appraisal 

Appraisals can be created in bulk from the Appraisal Cycle.

However, if you want to create an appraisal manually, here are the steps:

1. Go to the Appraisal list, and click on New.
2. Select the Employee
3. Select the Appraisal Cycle.
4. If the Appraisal Template for the employee is already set in the cycle’s Employees child table, it will be auto-fetched. Else you can select a template for the employee. Save.

3. Features 

3.1 KRA Evaluation 

Based on the KRA Evaluation Method selected in the Appraisal Cycle one of the following processes would be applicable:

3.1.1 Automated Based on Goal Progress 

This is the default KRA Evaluation method.

In this method you can create goals and sub-goals aligned to your KRAs.

A KRA vs Goals table will be visible in your appraisal document.

• KRA and weightage: Fetched from the appraisal template
• Goal Completion (%): Your goal completion percentage will be auto-calculated based on the progress of the goals linked to your KRAs.
• Goal Score (weighted): Based on the weightage assigned to each KRA, the Goal Score will be computed from the completion percentage. For ex: In the screenshot below, the Development KRA has 30% weightage and the employee has completed 75% of the goals. So the goal score is 22.5 out of 30, and so on.

You will finally get a Total Goal Score (out of 5) based on the Goal Score (%).

3.1.2 Manual Rating 

You can choose to rate Goals/KRAs manually. This is the original evaluation method used until v13.

1. Based on the template selected, the KRAs will be fetched in the Goals section.
2. Enter the score (0-5) for each KRA.
3. Based on the weightage mentioned, the Score Earned will be calculated for each KRA.
4. Save.

Based on the Score Earned for each KRA, the system will calculate the Total Score (out of 5) for the Employee.

3.2 Feedback 

Employee Performance Feedback is captured in the Employee Performance Feedback DocType.

But to get an overview of the employee’s performance, you can see the history of all the feedback employee has received in the cycle under the Feedback tab.

You can see the rating summary with the average feedback score, no of reviews, and the percentage distribution of the stars the employee has received.

Note: Only submitted feedback documents are visible in this history and the view is permission sensitive.

In every review, you can see the reviewer, their designation, avg rating given to the employee, the feedback and the time when the feedback was given. You can also click on the link icon to see the entire Employee Performance Feedback document.

If you have the required permissions, you can submit the performance feedback right from this view by clicking on the New Feedback button.

3.3 Self Appraisal 

Under the Self Appraisal tab, employees can rate themselves and add reflections on their performance. The Total Self Score is calculated based on the rating and the weightage against each Feedback Criteria.

3.4 Final Score Calculation 

The Final Score is calculated as an average of your Goal Score, Avg Feedback Score, and Self Appraisal Score.

3.5 View Goals 

You can view the Employee’s goals linked to that Appraisal Cycle by clicking on the View Goals button:

3.6 Approvals for Appraisals 

Finally, once you have captured all the feedback and updated goals and self appraisal in the Appraisal document, you can submit it.

You can also set up a Workflow for approvals before Appraisal submission.

The Employee Performance Feedback document allows you to capture 360° feedback on the employee’s performance. Reviewers can rate the employee based on some criteria set up in the Appraisal Template and add a written feedback assessing the employee’s performance throughout the cycle.

To create an Employee Performance Feedback, go to:

Home > Human Resources > Performance > Employee Performance Feedback

1. Prerequisites 

Before creating a Performance Feedback, you should create the following:

• Appraisal Template
• Appraisal Cycle
• Appraisal Cycle

2. How to create an Employee Performance Feedback 

2.1 From the Appraisal 

You can directly give feedback to an employee from their Appraisal document. If you have the required permissions, you can submit the performance feedback right from this view by clicking on the New Feedback button.

For more details about the feedback timeline check Appraisal

2.2 Direct creation 

1. Go to the Employee Performance Feedback list, and click on New.
2. Select the Employee.
3. If your session user is linked to some employee, that employee will be auto-selected as the reviewer. Else you can select the reviewer.
4. Select the Appraisal document against which you want to give the feedback.
5. The feedback criteria set in the Appraisal Template in the Appraisal document will be pulled into the Feedback Ratings child table.
6. You can rate the employee for each criteria and add your feedback under the feedback.
7. Save and Submit.

3. Features 

3.1 Average Feedback Score 

On submitting a feedback, the average feedback score will be updated in the linked appraisal. Cancelling the feedback will update the score again.

3.2 Approvals for Appraisals 

If you don’t want employees to submit feedback directly, You can also set up a Workflow for approvals before submission.

Goal setting is the process of planning specific, measurable and role-oriented goals that employees work towards in your company.

To check the goal list, go to:

Home > Human Resources > Performance > Goal

1. Prerequisites 

Before creating a Goal, you should create the following:

• Employee

If you want the goal’s progress to impact your appraisals, you will also need to create:

• Appraisal Cycle
• Appraisal

2. Goal Setting 

2.1 From the tree view 

Since goals have a hierarchical structure, its easier to add new goals from the tree view. You can also update the progress for your child goals from the tree view. Parent goal’s progress is auto-calculated based on child goals.

You can apply a filter for the Appraisal cycle and your Employee record. These fields will be picked up in the New Goal dialog.

2.2 From the list view 

1. Go to the Goal list, and click on New.
2. Enter your goal. You can optionally add a detailed description of your goal.
3. You can break down your goals into sub-goals for better tracking. To do so, select the goal in the Parent Goal field. Ex: I have a goal called Quality Improvement aligned to the Quality KRA. I can add multiple goals under Quality Improvement like:
   • Bring down GitHub issues by 20%
   • Increase test converage by 30%
4. Mark the goal as Is Group if this goal is going to have sub-goals
5. Select the Employee.
6. Set the Start and End Dates for your goal.
7. If you want the goal’s progress to impact your appraisal, select the Appraisal Cycle and tag the KRA for your goal. Now on updating the goal’s progress the goal score linked to your KRA will be updated.
8. Save. The status of your goal is auto-updated based on the progress.

3. Features 

3.1 Goal Progress Update 

Whenever a child goal is updated, the parent’s goal progress is also updated.

How does a goal’s progress affect its parent?

Ex: progress for the goal child2 is 25%: the average of its children (child3 and child4) progress for the goal parent is 12.5%: the average of its children (child1 and child2)

parent (12.5%)
|_ child1 (0%)
|_ child2 (25%)
        |_ child3 (50%)
        |_ child4 (0%)

Whenever a goal is updated, the average goal completion against the KRA linked to that goal is also updated. Ex: In the screenshot below, the Development KRA has 30% weightage and the employee has completed 75% of the goals. So the goal score is 22.5 out of 30, and so on.

3.2 Archive Goal 

Sometimes you add a goal while planning but later on, you don’t want to work on that goal anymore. In that case, you can archive the goal. Archived goal’s progress won’t contribute to the KRA/Goal score.

The Vehicle document allows you to define the different types of Vehicles in your Organization. It acts as the Vehicle Master for Fleet Management.

To access the Vehicle master, go to:

> Human Resources > Fleet Management > Vehicle

1. How to create a Vehicle document 

1. Go to Vehicle list, click on New.
2. Enter information such as License Plate, Make (Brand) and Model.
3. Enter Odometer value (Last).
4. Enter other additional details such as Fuel Type ad Fuel UOM.
5. Save.

2. Features 

Apart from the aforementioned mandatory features, some additional features that can be captured in the Vehicle master are as follows:

2.1 Additional Vehicle Details 

Additional Vehicle details such as Chassis No., Acquisition Date, Vehicle Value (Amount), Location, Employee managing the Vehicle and Insurance details can be captured in the Vehicle master.

2.2 Vehicle Attributes 

Additionally, Vehicle attributes like Color, Wheels, Door, Last Carbon Check, Fuel Type and UOM can be saved in the Vehicle master.

Vehicle Log is used to enter Odometer readings, Fuel Expenses and Service Expense details.

To access Vehicle Log, go to:

> Human Resources > Fleet Management > Vehicle Log

1. Prerequisites 

Before creating a Vehicle Log, it is necessary that you create the following documents:

• Vehicle

2. How to create a Vehicle Log 

1. Go to Vehicle Log list, click on New.
2. Select License Plate and Employee.
3. Enter Odometer Reading information such as Date and Odometer (reading).
4. Enter Refueling Details [optional] such as Fuel Qty, Fuel Price, Supplier and Invoice Ref.
5. Additionally, Vehicle Service Details can also be added as shown (optional).
6. Save. Once the information is saved, the Model and Make values will be automatically fetched.

3. Features 

Fleet Management in HR allows you to automatically create an Expense Claim against your Vehicle Expenses.

3.1 Make Expense Claim against Vehicle Expenses 

Click on Make Expense Claim button. This button appears only in case of Submitted Vehicle Logs.

When you click on ‘Make Expense Claim’,

1. The Date, Employee, Expense total are fetched over to the created Expense Claim.
2. The sum of Fuel Expenses and Service Expenses is calculated and fetched over to Expense Claim Amount.
3. Employee can submit the Expense Claim for further processing.

Holiday List is a list which contains the dates of holidays.

Most organizations have a standard Holiday List for their employees. However, some of them may have different holiday lists based on different Locations or Departments. In IONIC ERP, you can configure multiple Holiday Lists and assign them to your employees based on your requirements.

To access Holiday List, go to:

> Home > Human Resources > Leaves > Holiday List

1. How to create a Holiday List 

1. Go to Holiday List, click on New.
2. Enter Holiday List Name. It can be based on the Fiscal Year or Location or Department as per the requirement.
3. Select From Date and To Date for the Holiday List.

2. Features 

Some of the additional features in the Holiday List are as follows:

2.1 Adding Weekly Holidays 

You can quickly add Weekly Offs in the Holiday List as follows:

1. In the ‘Add Weekly Holidays’ section, select the day in the Weekly Off field.
2. Click on the ‘Add to Holidays’ button.
3. Save.

Once the Weekly Offs are added, it is reflected in the Holidays table.

> Note: You can add multiple days in the Weekly Offs.

You can also add specific days (like festival holidays) manually by clicking on the ‘Add row’ option in the Holidays table.

> Note: Each time a new holiday is updated in the Holidays table, the Total Holidays field gets updated.

2.2 Holiday List in Company 

You can set a default Holiday List at the company-level in the Company master in the ‘Default Holiday List’ field.

2.3 Holiday List in Employee 

If you have created multiple Holiday List, select a specific Holiday List for an Employee in the respective master.

When an Employee applies for Leave, the days mentioned in the Holiday List will not be counted, as they are holidays already.

> Note: If you have specified a Holiday List in the Employee master, then that Holiday List will be given priority as compared to the default Holiday List of the Company. You can form as many holiday lists as you wish. For example, if you have a factory, you can have one list for the factory workers and another list for office staff. You can manage between many lists by linking a Holiday List to the respective Employee.

2.4 Holiday List in Workstation 

You can also set a Holiday List at workstation-level as shown in the screenshot below.

The dates in the Holiday List tagged in the Workstation master will be considered as the days the Workstation will remain closed.

Leave Type refers to the types of leaves allocated to an Employee which they can use while making Leave Applications.

You can create any number of Leave Types based on your company’s requirements.

To access Leave Type, go to:

> Home > Human Resources > Leaves > Leave Type

1. How to create a Leave Type 

1. Go to Leave Type list, click on New.
2. Enter Leave Type Name.
3. Enter Max Leaves Allowed, Applicable After (Working Days), Maximum Continuous Days Applicable (optional).
4. Save.

Below is a detailed explanation of all the fields and checkboxes in Leave Type.

• Max Leaves Allowed: This field allows you to set the maximum number of the annual allocation of this Leave Type while creating the Leave Policy.
• Applicable After (Working Days): Enter the minimum number of working days here. Only the employees who have worked for this number of days or more will be allowed to apply for this particular leave type. Any other leaves (such as Casual Leave, Sick Leave.etc.) availed by the Employees after their joining date will also be considered while calculating working days of the Employee.
• Maximum Continuous Days Applicable: It refers to the maximum number of days this particular Leave Type can be availed at a stretch. If an employee exceeds the maximum number of days, their extended leave will be considered as ‘Leave Without Pay’.
• Is Carry Forward: If checked, the balance leaves of this Leave Type will be carried forward to the next allocation period.
• Is Leave Without Pay: This ensures that the Leave Type will be treated as leaves without pay and salary will get deducted for this Leave Type.
• Is Optional: Optional Leaves are holidays that Employees can choose to avail from a list of holidays published by the company. The Holiday List for Optional Leaves can have any number of holidays, but you can restrict the number of such leaves by setting the Max Days Leave Allowed field.
• Allow Negative Balance: If checked, the system will always allow to apply and approve Leave Applications for the Leave Type, even if there is no leave balance.
• Allow Over Allocation: If checked, the system will allow allocating more leaves than the number of days in the allocation period.
• Include holidays within leaves as leaves: Check this option if you wish to count holidays within leaves as a ‘leave’. For example, if an Employee has applied for leave on Friday and Monday, and Saturday and Sunday are weekly offs, if the ‘Include holidays within leaves as leaves’ checkbox for the Leave Type is checked, the system will consider Saturday as Sunday as leaves too. Such holidays will be deducted from the total number of leaves.
• Is Compensatory: Compensatory leaves are leaves granted for working overtime or on holidays, normally compensated as an encashable leave. You can check this option to mark the Leave Type as compensatory. An Employee can request for compensatory leaves using Compensatory Leave Request.

> Introduced in version 13

• Is Partially Paid Leaves: This checkbox ensures that Leave Type will be treated as partially paid and some part of daily earnings will be paid through salary slip. If this checkbox is enabled then a field “Fraction of Daily Salary Per Leave” appears where you can define the fraction of daily salary paid on the partial leave day.

> Note: The Leave Type can be either Leave Without pay or Partially Paid.

2. Features 

2.1 Leave Encashment 

It is possible that Employees can receive cash from their Employer for unused leaves granted to them in a Leave Period. Not all Leave Types need to be encashable, so, you should set “Allow Encashment” for only those Leave Types which are encashable.

> Note: Leave encashment is allowed only in the last month of the Leave Period.

Encashment Threshold Days: This field indicates the number of leave days the Employees won’t be able to encash. Above the mentioned days, the Employee is eligible to encash leaves.

For example, if there are 10 leaves of a particular Leave Type which is encashable, and the Employee has 8 leaves left. If Encashment Threshold Days = 5, the Employee is given encashment of only 8 – 5 = 3 leaves.

Earning Component: This field allows you to specify the Salary Component that will be encashed to Employees as a part of their Salary in the Salary Slip.

> Note: On submitting a Leave Encashment for an Employee, ERPNext automatically creates an Additional Salary which will get added to the Salary Slip of the Employee when processing the next payroll.

2.2 Earned Leave 

Earned Leaves are leaves earned by an Employee after working with the company for a certain amount of time. Checking “Is Earned Leave” will allot leaves pro-rata basis by automatically updating Leave Allocation for leaves of this type at intervals set by ‘Earned Leave Frequency’.

For example, an Employee is allotted 24 Privilege Leaves in a year, wherein the Privilege Leave is set as Earned Leave with Monthly allotment. In this case, the Employee will earn 2 (24 leaves/12 months) Privilege Leaves at the end of every month. The leave allotment process (background job) will only allot leaves considering the max leaves for the leave type and will round to ‘Rounding’ for fractions.

> Note: The initial allocation of this Leave Type will be 0. Leaves will be updated at the end of the Month (or as per the ‘Earned Leave Frequency’ set).

2.3 Default Leave Types 

There are some pre-loaded Leave Types in the system, as below:

• Leave Without Pay: You can avail these leaves for different purposes, such as extended medical issues, educational purposes, or unavoidable personal reasons. The ‘Leave Without Pay’ checkbox for this Leave Type is checked by default. The employee does not get paid for such leaves.
• Privilege leave: These are like earned leaves that can be availed for travel, family vacation, and so on.
• Sick leave: You can avail of these leaves if you are unwell.
• Compensatory off: These are compensatory leaves allotted to employees for overtime work. The ‘Is Compensatory’ checkbox for this Leave Type is checked by default.
• Casual leave: You can avail of this leave to take care of urgent and unseen matters.

A Leave Period is a duration of time for which leaves are allocated.

Most companies manage leaves based on a Leave Period, corresponding to a calendar year or the fiscal year. To access Leave Period, go to:

> Home > Human Resources > Leaves > Leave Period

1. Prerequisites 

Before creating a Leave Period, it is advisable to create the following:

• Company
• Holiday List

2. How to create a Leave Period 

1. Go to Leave Period list, click on New.
2. Enter the From Date and To Date of the Leave Period.
3. Select the Company name for which the Leave Period is applicable.
4. Save.

The Leave Period also allows you to select a Holiday List for Optional Leaves (optional) which will be considered for allocating Optional Leaves for the period.

> Note: The ‘Holiday List for Optional Leaves’ is not the same as the usual ‘Holiday List’. This list will contain a list of optional holidays only. ‘Holiday List for Optional Leaves’ can be created from the Holiday List document. You can create two Holiday Lists for a Leave Period; one containing the usual set of holidays and the other for optional holidays.

Additionally, you can check the ‘Is Active’ checkbox if you want to enable this particular Leave Period.

3. Granting leave using Leave Period 

> In version 12, leaves could be granted via Leave Period through the “Grant Leaves” button. In version 13, leaves will be granted using Leave Policy Assignment.

Once the information is saved, the Leave Period will also be used as a tool to help you grant leaves for a category of employees.

The Grant button will generate Leave Allocations based on the Leave Policy applicable to each Employee. You can allocate leaves based on Employee Grade, Department or Designation as shown below.

The amount of entitled leaves in a Company for an Employee in a Leave Period is known as Leave Policy.

It is a practice for many enterprises to enforce a general Leave Policy to effectively track and manage Employee leaves. IONIC ERP allows you to create and manage multiple Leave Policies and allocate leaves to Employees as defined by the policy.

To access Leave Policy, go to:

> Home > Human Resources > Leaves > Leave Policy

1. How to create a Leave Policy 

1. Go to Leave Policy list, click on New.
2. Select the Leave Type and enter its Annual Allocation.
3. Save and Submit.

Once submitted, you can enforce the Leave Policy through the dashboard, either to an Employee or an Employee Grade.

When a Leave Policy is assigned to an Employee Grade, it will ensure that all leave allocations for employees of this grade will be as per the Leave Policy. In case you need to selectively update the Leave Policy for a particular Employee, you can do so by tagging the Leave Policy in the Employee master under the ‘Attendance and Leave Details’ section.

Leave Allocation enables you to allocate a specific number of leaves of a particular type to an Employee.

To access Leave Allocation, go to:

> Home > Human Resources > Leaves > Leave Allocation

1. Prerequisites 

Before creating a Leave Allocation, it is advisable you create the following documents:

• Employee
• Leave Type
• Leave Period
• Leave Policy

2. How to create a Leave Allocation 

1. Go to Leave Allocation list, click on New.
2. Select the Employee, Leave Type, From Date and To Date.
3. Enter the number of New Leaves Allocated for that particular Leave Type.
4. Save and Submit.

> Note: Enable the ‘Add unused leaves from previous allocations’ option in case you want to carry forward unused leaves from the previous allocation period for this particular Leave Type.

2.1 Allocating Leaves through Leave Period 

Leaves are usually allocated for a particular Leave Period. Once a Leave Period is created and saved, you can click on the Grant button to generate Leave Allocations based on the Leave Policy applicable to each Employee.

You can allocate leaves based on Employee Grade, Department or Designation.

Once granted, the leaves will be automatically allocated to the selected Employees based on the Leave Policy set in their Employee master. You can check the newly allocated leaves in the Leave Allocation list.

Compensatory Leave is a leave that is granted to an Employee as compensation for working overtime or on holidays.

IONIC ERP allows Employees to request for Compensatory Leaves through the Compensatory Leave Request document. It is necessary that the dates mentioned in the Compensatory Leave Request should be in default Holiday List and also that the Employee should have their attendance marked Present.

> Note: Only Leave Types which are marked as ‘Is Compensatory’ can be selected in the Compensatory Leave Request.

To access Compensatory Leave Request, go to:

> Home > Human Resources > Leaves > Compensatory Leave Request

1. Prerequisites 

Before creating a Compensatory Leave Request, it is necessary to create the following documents:

• Employee
• Leave Period
• Leave Type
• Leave Policy
• Leave Allocation
• Holiday List
• Attendance

2. How to create a Compensatory Leave Request 

1. Go to Compensatory Leave Request list, click on New.
2. Select the Employee ID. Once selected, The Employee Name and Department will get automatically fetched.
3. Select Leave Type.
4. Select Work From Date and Work End Date. This is the date of the day(s) the Employee has worked on, during a Holiday.
5. Enter the Reason.
6. Save and Submit.

On submitting the Compensatory Leave Request, IONIC ERP updates the Leave Allocation record for the Compensatory leave type, allowing the Employee to apply for leaves of this type later on depending upon the number of leaves left.

Leave Encashment refers to an amount of money received in exchange for Leaves not availed by an Employee. You can submit Leave Encashment for Leave Types which are encashable.

To access Leave Encashment, go to:

> Home > Human Resources > Leaves > Leave Encashment

1. Prerequisites 

Before creating Leave Encashment, it is advisable you create the following documents:

1. Employee
2. Leave Type
3. Leave Policy
4. Leave Period
5. Salary Structure
6. Salary Structure Assignment

2. How to create a Leave Encashment 

1. Go to Leave Encashment list, click on New.
2. Select Leave Period.
3. Select the Employee. Once the Employee is selected, the Employee’s Department is automatically fetched.
4. Select Leave Type for which the Leave is encashed. Make sure the Leave Type is encashable (the ‘Allow Encashment’ checkbox in the Leave Type is checked).
5. Select Encashment Date. Based on the date selected, the amount will be encashed in that particular Payroll Entry.
6. Save and Submit.

> Note: As you select Employee and Leave Type, Leave Balance and Encashable Days (which is total leave balance minus the threshold days set in Leave Type) will be shown along with the Encashment Amount based on the Leave Encashment per day as configured in the Employee’s assigned Salary Structure.

On submitting a Leave Encashment for an Employee, ERPNext automatically creates an Additional Salary which will get added to the Salary Slip of the Employee when processing the payroll.

Leave Block List is a list of dates in a year, on which employees cannot apply for leave.

To access Leave Block List, go to:

> Home > Human Resources > Leaves > Leave Block List

IONIC ERP allows you to define a list of Leave Approvers who can approve Leave Applications on blocked days, in case of urgency. You can also define whether the list will be applied to the entire company or on any specific departments.

1. Prerequisites 

Before you create a Leave Block List, it is advisable you have the following documents:

• Company
• Department
• Leave Period
• Holiday List

2. How to create a Leave Block List 

1. Go to Leave Block list, and click on New.
2. Enter Leave Block List Name.
3. Enter Block Date and Reason in the ‘Leave Block List Dates’ table.
4. Enter Users to approve Leave Applications for Blocked Days in the ‘Leave BLock List Allowed’ table.
5. Save.

> Note: Enable the ‘Applies to Company’ option if you want the Leave Block List to be applicable for the entire Company. If not checked, the list will have to be added to each Department where it has to be applied.

A unified ledger for all leave related transactions for an employee. This maintains all the leaves related transactions, this includes the leave allocations, leave applications and leave encashments of your employees.

Staffing Plan helps you to plan manpower requirements for your Company.

HR allows you to do this at a company level helping you efficiently plan and budget new hirings for a period. Job Openings can only be created as per the number of vacancies and budget as per the active Staffing Plan.

To access Staffing, go to:

> Home > Human Resources > Recruitment > Staffing Plan

1. Prerequisites 

Before creating a Staffing Plan, it is necessary you create the following:

• Department
• Designation

2. How to create a Staffing Plan 

1. Go to Staffing Plan list, click on New.
2. Enter the Name, From and To Date and select the Department for which you want to create the Staffing Plan.
3. Enter the Staffing Plan Details such as Designation, Vacancies, Estimated Cost Per Position, Total Estimated Cost and Number of Positions.
4. Save and Submit.

3. Features 

Some of the additional features in the Staffing Plan doctype are explained below:

• Designation: The designations for which the Staffing Plan is created.
• Number of Positions: The number of positions you plan to recruit for between the From and To Dates of the Staffing Plan.
• Current Count: This is the number of Employees already hired against the particular Designation.
• Vacancies: The number of vacancies based on the Number of Positions you wish to recruit and the current Employee count.
• Estimated Cost Per Position: You can specify the cost to company per position so that hiring officials can stick to the budget.
• Total Estimated Budget: Once you enter the recruitment plan for all the designations, Staffing Plan will draw up the total estimated budget as per the plan.

A Job Applicant is a person who applies for a job in your Company against a particular Job Opening.

In IONIC ERP, you can maintain a list of people who have applied against a particular Job Opening.

To create a Job Applicant, go to:

> Home > Human Resource > Recruitment > Job Applicant

1. Prerequisites 

Before creating a Job Applicant, it is advisable you create the following:

• Staffing Plan
• Department
• Job Opening

2. How to Create a Job Applicant 

1. Go to Job Applicant list, click on New.
2. Enter Applicant Name and Email Address.
3. Select Job Opening.
4. Select Source (Campaign, Employee Referral, Walk In, Website Listing).

> Note: If you select the Source as Employee Referral, you will have to select the Employee name in the Source Name Field.

3. Features 

3.1 Linking with an Email Account 

You can link Job Application with an Email account. Suppose you link Job Application with an email job@example.com, the system will create a New Job Applicant against each email received on the mailbox.

• To link Email Account with Job Applicant, go to:

> Settings > Email Account > New Email Account

• Enter the Email Address and the password, and select ‘Enable Incoming’
• In ‘Append To’ select ‘Job Applicant’

Training Program defines programs designed for training employees or other individuals in specific skills.

In IONIC ERP, you can create a Training Program and schedule Training Events under it.

To access Training Program, go to:

> Home > Human Resources > Training > Training Program

1. How to create a Training Program 

1. Go to Training Program list, click on New.
2. Enter the Training Program name.
3. Enter the Trainer Name, Trainer Email and Contact Number.
4. Select the Supplier n(optional) in case an outside vendor/expert was called to conduct the training.
5. Additionally, you can also write a short description of the Training Program in the Description box (optional).

> Note: By default, the Status of the Training Program is ‘Scheduled’. However, you can change the status to ‘Completed’ or ‘Cancelled’ as per the requirement.

Once the Training Program is saved, you can create Training Events under the same.

Training Event allows you to schedule seminars, workshops, conferences, etc. under a Training Program.

You can also invite your employees to attend the event using this feature.

To access Training Event, go to:

> Home > Human Resources > Training > Training Event

1. Prerequisites 

Before creating a Training Event, it is advisable you create the following documents:

• Training Program
• Employee

2. How to create a Training Event 

1. Go to the Training Event list, click on New.
2. Enter the Event Name.
3. Select the Event Type.
4. Select Event Level (Beginner, Intermediate, Expert).
5. Enter the Trainer Name, Email and Contact Number.
6. Select the Event Course. Enter the Start Time, End Time and Location of the Training Event.
7. Additionally, you can also write a short description of the Event in the Description box.
8. Save and Submit.

> Note: Check the ‘Has Certificate’ checkbox if the Training Event is a certified course.

3. Features 

3.1 Inviting Employees for the Event 

You can invite your employees to attend the Training Event. You can do so by selecting the employees to be invited in the Employees table.

By default the status of the employee will be ‘Open’.

When you submit the Training Event, a notification will be sent to the employee notifying that the Training has been scheduled. This is sent via Email Alert “Training Scheduled”. You can modify this Email Alert to customize the message.

After completion of the training event, employee-wise training results can be stored based on the evaluation done by the trainer.

IONIC ERP allows you to create training results and share it with the employees with the Training Result doctype.

To access Training Result, go to:

> Home > Human Resources > Training > Training Result

1. Prerequisites 

Before creating a Training Result, it is advisable you create the following documents:

• Training Program
• Training Event
• Employee

2. How to create a Training Result 

1. Go to the Training Result list, click on New.
2. Select Training Event.
3. Enter the Hours, Grade and Comments against the Employee Name.
4. Save and Submit

When the Training Result is submitted, all the employees will receive an email notifying them that they must share their feedback via Training Feedback. This is also managed via an Email Alert, so you can customize this alert too.

> Note: You can also access Training Result directly from the Training Event dashboard.

Once the Training is complete, employees can share their feedback via Training Feedback.

To access Training Feedback, go to: > Human Resources > Training > Training Feedback

1. Prerequisites 

Before creating a Training Event, it is advisable you create the following documents:

• Training Program
• Training Event
• Employee

2. How to create a Training Feedback 

1. Go to the Training Feedback list, click on New.
2. Select the Employee.
3. Select the Training Event. Based on that, the corresponding Event Name, Course and Trainer Name will get fetched.
4. Enter the feedback in the Feedback box.
5. Save and Submit.

> Note: You can also access Training Feedback directly through the Training Event dashboard.

In the process of hiring an Employee, there are set of standard activities which need to be executed. This feature helps you to maintain the masters of these activities, and create a set of tasks at the time of each Employee hiring.

Employee Onboarding is created for a Job Application, who is approved for the hiring.

Use Case: Let’s assume that following are the activities which need to be performed as soon as a job applicant is approved to be hired.

• Perform a legal and professional background check
• Create an Employee master
• Create an Email Account
• Create an identity card
• Allocate leaves

In HR, these standard activities can be tracked in the Employee Onboarding Template. To access Employee Onboarding, go to:

> Human Resources > Employee Lifecycle > Employee Onboarding

1. Prerequisites 

Before creating an Employee Onboarding, it is advisable that you create the following documents:

• Job Applicant
• Employee
• Department
• Designation
• Employee Grade

2. How to create an Employee Onboarding 

1. Go to: Employee Onboarding > New.
2. Select the Job Applicant. once the Job Applicant is selected, the corresponding Employee will automatically get fetched.
3. Select the Employee Onboarding Template. Based on the template selected, information such as Department, Designation and Employee grade will be automatically fetched (if already mentioned in the Onboarding Template).
4. Enter Date of Joining.
5. Save and Submit.

   

> Note 1: If an Employee Onboarding Template isn’t created, you can directly fill the onboarding information in the Employee Onboarding doctype itself.

> Note 2: The ‘Status’ of the Employee Onboarding will change to Completed once all the associated Activities are complete.

3. Features 

3.1 Employee Onboarding Template 

The Employee Onboarding Template is a blueprint which contains a predefined list of Activities for Employee Onboarding. An Employee Onboarding Template can be created for a particular Department, Designation and Employee Grade.

To create a new Employee Onboarding Template:

1. Go to: Human Resources > Employee Lifecycle > Employee Onboarding Template > New.
2. Enter the Department, Designation and Employee Grade (optional).
3. Mention the Activities for onboarding. For each Activity, you can also mention the User or Role, or one of it, to whom this Activity will be assigned.
4. You can also schedule the Onboarding Activities by specifying the Begin On (Days) i.e. when the activity has to start and the Duration (in Days) for the same.

   

3.2 Tasks and Assignments 

On submission of the Employee Onboarding, a Project will be created. Within the Project, Tasks will also be created for each Activity. If you have set the date and duration against activities, tasks will be created with appropriate Start and End Date excluding holidays.

You can view the created Projects and Tasks as shown below:

Additionally, each Activity can be assigned weights based on its importance.

Based on the progress on the Tasks, progress can be updated in the Employee Onboarding process.

3.3 Employee Creation 

You can directly create an Employee through the Employee Onboarding doctype (if not already created) once all the mandatory onboarding tasks are complete.

Promotion or career advancement is a process through which an Employee of a company is given a higher share of duties, a higher pay-scale or both.

In HR, you can manage Employee Promotion and its various associated activities using this document.

To access Employee Promotion, go to:

> Human Resources > Employee Lifecycle > Employee Promotion

1. Prerequisites 

Before creating an Employee Promotion, it is advisable that you create the following documents:

• Employee
• Department

2. How to create an Employee Promotion 

1. Go to: Employee Promotion > New.
2. Select the Employee.
3. Enter the Promotion Date.
4. In the Employee Promotion Detail table, select the Property and set the Current and New value.

   

> Note: Promotion document can be submitted on or after Promotion Date. Once submitted all the changes added to Promotion Details table will be applied to the Employee. HR also keeps a record of all promotions of the Employee in the Employment History table in Employee document.

Employee Separation is a situation when the service agreement of an Employee with his/her organization comes to an end and the Employee leaves the organization.

Employee Separation is created for an Employee who has resigned or terminated from the organization.

Use Case: Let’s assume that following are the activities which need to be performed as soon as an Employee needs to be separated from the organization.

• Collect laptop
• Clear dues
• Delete Employee Email Account
• Collect identity card

In HR, these standard activities can be tracked in the Employee Separation Template. To access Employee Separation, go to:

> Human Resources > Employee Lifecycle > Employee Separation

1. Prerequisites 

Before creating an Employee Separation, it is advisable that you create the following documents:

• Employee
• Department
• Designation
• Employee Grade

2. How to create an Employee Separation 

1. Go to: Employee Separation > New.
2. Select the Employee. Once the Employee is selected, the corresponding Employee information such as Department, Designation and Employee Grade will automatically get fetched.
3. Select the Employee Separation Template. Based on the template selected, information such as Department, Designation and Employee grade will be automatically fetched (if already mentioned in the Separation Template).
4. Enter the Resignation Letter Date.
5. Additionally, you can also enter the Exit Interview Summary.
6. Save and Submit.

   

> Note 1: If an Employee Separation Template isn’t created, you can directly fill the separation information in the Employee Separation doctype itself.

> Note 2: The ‘Status’ of the Employee Separation will change to Completed once all the associated Activities are complete.

3. Features 

3.1 Employee Separation Template 

The Employee Separation Template is a blueprint which contains a predefined list of Activities for Employee Separation. An Employee Separation Template can be created for a particular Department, Designation and Employee Grade.

To create a new Employee Separation Template:

1. Go to: Human Resources > Employee Lifecycle > Employee Separation Template > New.
2. Enter the Department, Designation and Employee Grade (optional).
3. Mention the Activities for separation. For each Activity, you can also mention the User or Role, or one of it, to whom this Activity will be assigned.
4. You can also schedule the Separation Activities by specifying the Begin On (Days) i.e. when the activity has to start and the Duration (Days) for the same.

   

3.2 Tasks and Assignments 

On submission of the Employee Separation, a Project will be created. Within the Project, Tasks will also be created for each Activity. If you have set the date and duration against activities, tasks will be created with appropriate Start and End Date excluding holidays.

You can view the created Projects and Tasks through View > Project/ Tasks.

Additionally, each Activity can be assigned weights based on its importance.

Based on the progress on the Tasks, progress can be updated in the Employee Separation process.

3.3 Employee Status 

You can directly view the separated Employee through the Employee Separation doctype through View > Employee once the form is submitted.

Employee Transfer is a form of internal mobility, in which the Employee is shifted from one job to another usually at a different location, department, or unit.

In HR, you can record Employee transfers to different Company or Department by using the Employee Transfer document.

To access Employee Transfer go to:

> Human Resource > Employee Lifecycle > Employee Transfer

1. Prerequisites 

• Employee
• Department

2. How to create a Employee Transfer 

1. Select the Employee.
2. Select the Transfer Date.
3. Select the New Company in case the Employee is transferred to a different company (optional).
4. In the Employee Transfer Details table, select the Property and set the Current and New value.
5. Additionally, ‘Create New Employee’ checkbox can be checked to create a new Employee ID for the transferred Employee.

> Note: If Create New Employee ID is checked, a new Employee will be created with property changes in Transfer Details table and old Employee will be marked as relieved. Leave allocations for the new Employee has to be manually created from Leave Period.

> Note: Transfer document can be submitted on or after Transfer Date. Once submitted all the changes added to Transfer Details table will applied to Employee.

Payroll processing is an important function of every enterprise HR. HR greatly simplifies this process by offering an array of features that you can utilize from Salary Structure management to bulk processing Payroll of employees. Read the following documentation to understand how to configure and use HR Human Resources to super power your Payroll processing.

Related Topics 

1. Payroll Period
2. Salary Component
3. Salary Structure
4. Salary Structure Assignment
5. Payroll Entry
6. Additional Salary
7. Retention Bonus
8. Employee Incentive

A Payroll Period is a period for which Employees get paid for their occupation with the Company.

Payroll Period helps you define Salary Structures and to calculate tax for a specific period based on applicable Income Tax Slab.

To access Payroll Period, go to:

Home > Human Resources > Payroll > Payroll Period

1. How to create a Payroll Period 

1. Go to Payroll Period list, click on New.
2. Enter Name.
3. Select Start Date and End Date of Payroll Period.
4. Save.

Income Tax Slab is a document to define income tax rates based on different taxable income slab.

In many countries, income tax is levied on individual taxpayers based on a slab system where different tax rates have been prescribed for different slabs and such tax rates keep increasing with an increase in the income slab. In Frappe HR, you can define multiple Income Tax Slabs and link them to individual employee’s salary structure via Salary Structure Assignment.

To access Income Tax Slab, go to: > Home > Human Resources > Payroll > Income Tax Slab

1. How to create an Income Tax Slab 

To create a new Income Tax Slab:

1. Enter a Name for the IT Slab, Company and the date from which it will be Effective From.
2. Enable the checkbox ‘Allow Tax Exemption’ if applicable.
3. Save and Submit.

2. Features 

2.1 Tax Slabs 

In the Tax Slab table, you can define the rate for different income slabs. To define slab, From Amount and To Amount should be entered. For the first slab, From Amount is optional and for the last slab, To Amount is optional. Both the amount is inclusive while evaluating tax based on taxable income.

The tax slab can be applicable based on specific conditions. Conditions can be written using all field names of Employee, Salary Structure, Salary Structure Assignment, and Salary Slip documents.

Examples:

// Apply tax if employee born between 31-12-1937 and 01-01-1958 (Employees aged 60 to 80)
date_of_birth > date(1937, 12, 31) and date_of_birth < date(1958, 01, 01)

// Apply tax by employee gender
gender == "Male"

// Apply tax by Salary Component
base > 10000

// Annual Taxable income is greater than 5 lakhs
annual_taxable_earning > 500000

2.2 Other Taxes and Charges on Income Tax 

If other taxes are applicable on calculated income tax, you can enter those using this table. You can also define the min and max taxable amount for which this tax will be applicable. For example, Health and Education Cess is applied additionally on income tax to everyone in India.

2.3 Other Properties 

• Allow Tax Exemptions: Tax exemptions can be allowed for a specific Income Tax Slab. If enabled, while calculating taxes based on this tax slab, Employee Tax Exemption Declaration and Proof Submission are considered for calculating taxable income.
• Standard Tax Exemption Amount: If exemption is allowed, the Standard Tax Exemption Amount defined by the government can be added here. This exemption generally does not need any kind of document proof and applicable to all employees linked to this income tax slab.

Salaries are paid by organizations to their employees in exchange for the services rendered by them. The different components that make up the Salary Structure are called as Salary Components.

Salary paid to the employees comprises of several different components, such as basic salary, allowances, arrears, etc. HR allows you to define these Salary Components and also specify its various attributes.

To access Salary Component, go to: > Home > Human Resources > Payroll > Salary Component

1. How to create a Salary Component 

To create a new Salary Component:

1. Go to Salary Component list, click on New.
2. Enter its Name and Abbreviation.
3. Enter Description of the Salary Component (optional).
4. Enter the Company name and the Default Account of the Salary Component in the Accounts table.
5. Save.

2. Features 

Apart from the above mentioned mandatory fields, some of the additional features of the Salary Component are given below:

2.1 Condition and Formula 

In this section, the Condition and Formula required for the calculation of the Salary Component can be specified. To specify the formula, enable the ‘Amount based on formula’ checkbox.

In case the Salary Component is based on a pre-defined amount, HR allows you to directly enter the amount in the Amount field (disable the ‘Amount based on formula’ checkbox).

You can also use some mathematical/date functions while writing formulae.

# Consider a component `basic` with amount as 1220.32 as an example:

# int - cast the amount as int
int(basic) # evaluates to 1220

# flt - cast the amount as flt
flt(basic, 1) # evaluates to 1220.3

# round - rounds the amount
round(basic) # evaluates to 1220

# ceil - rounds the number up to the nearest integer
ceil(basic) # evaluates to 1221

# floor - rounds the number down to the nearest integer
floor(basic) # evaluates to 1220

# getdate/date - casts the value `start_date` to a `datetime.date` object
# eg: Professional Tax is 300 in February and 200 in every other month. `start_date` takes up the value of salary slip's `start_date`
# In that case the condition can be written as given below:

300 if getdate(start_date).month == 2 else 200

> Note: This above setup is optional. You can define Amount and Formula/Condition for a Salary Component directly in the Salary Structure also. If they are specified in the Salary Component document itself, the information will be directly fetched in the Salary Structure when the Component is selected.

2.2 Additional Properties 

Some of the additional attributes of the Salary Component that can be enabled using checkboxes are as follows:

• Is Payable: Select this if the Salary Component is payable.
• Depends on Payment Days: If this checkbox is enabled then the Salary Component will be calculated based on the number of working days.
• Is Tax Applicable: This checkbox is applicable for Earning Components. Selecting this checkbox allows tax to be applied on this Salary Component.
• Deduct Full Tax on Selected Payroll Date: If checked and the component is used in Additional Salary, the tax amount applicable on the additional amount will be deducted on the specific payroll month. If not checked, the tax will be distributed over the remaining months of the payroll period. For example, if a bonus is given in a particular month using Additional Salary, then you can deduct full tax amount in the same month only.
• Round to the Nearest Integer: Selecting this checkbox allows you to round the amount of this Salary Component to the nearest integer.
• Statistical Component: If selected, the value specified or calculated in this component will not contribute to the earnings or deductions. However, it’s value can be referenced by other components that can be added or deducted. If you set a Salary Component as a Statistical component, then you do not have to set the Default Account for the same. Also, you would not be able to set this component as a Flexible Benefit.
• Do Not Include in Total: Selecting this checkbox ensures that the Salary Component is not included in the Total Salary. It is used to define the component which is part of the CTC but not payable (e.g. Usage of Company Cars).
• Variable Based On Taxable Salary: The component is calculated automatically on taxable income based on applicable Income Tax Slab (e.g. TDS or Income Tax).
• Exempted from Income Tax: If checked, the full amount will be deducted from taxable income before calculating income tax without any declaration or proof submission. For example, Professional Tax in India is deducted from taxable income before calculating income tax.
• Disabled: This checkbox can be selected to disable this Salary Component. A disabled Salary Component cannot be used in the Salary Structure.

2.3 Flexible Benefits 

This section is shown if the Salary Component is an Earning Component. Flexible Benefit plans allow employees to avail the benefits they want or need from a package of programs offered by an employer. They may include health insurance, pension plans, telephone expenses, etc. To set a Salary Component as a Flexible Benefit, check the ‘Is Flexible Benefit’ checkbox.

Enter the maximum yearly amount for this flexible benefit in the ‘Max Benefit Amount (Yearly)’ field. Some of the additional attributes of the Flexible Benefits that can be enabled using checkboxes are as follows:

• Pay Against Benefit Claim: Enable this checkbox if you want to pay this benefit via the Employee Benefit Claim.
• Only Tax Impact (Cannot Claim But Part of Taxable Income): If set, the flexible benefit will be part of taxable income.
• Create Separate Payment Entry Against Benefit Claim: If this checkbox is checked, it will let you create a separate payment entry against the Benefit Claim.

Salary Structure Assignment form allows you to assign a particular Salary Structure to the employee.

In HR, you can create multiple Salary Structure Assignments for the same Employee for different periods.

To access Salary Structure Assignment, go to: > Home > Human Resources > Payroll > Salary Structure Assignment

1. Prerequisites 

Before you create a Salary Structure Assignment, it is advisable you have the following documents:

1. Employee
2. Salary Component
3. Salary Structure

2. How to create a Salary Structure Assignment: 

1. Go to Salary Structure Assignment list and click on New.
2. Select the Employee and Salary Structure.
3. Select the From Date from which this particular Salary Structure will be applicable.
4. Select preferred Income Tax Slab for the employee.
5. Enter Base and Variable amount as per requirement. Base amount refers to the Base Salary of the Employee, which is fixed and paid out, regardless of employees meeting their goals. Variable pay, on the other hand, is the portion of sales compensation determined by employee performance. When employees hit their goals (aka quota), variable pay is provided as a type of bonus, incentive pay, or commission.

   

2.1 Alternate ways to create Salary Structure Assignment 

You can also assign a Salary Structure to Employee(s) directly through the Salary Structure document. To assign the Salary Structure to a single employee, click on the ‘Assign Salary Structure’ button in the Salary Structure document.

If you want to bulk assign the Salary Structure to multiple employees, you can do so via the ‘Assign to Employees’ button.

You can optionally filter out employees based on Employee Grade, Department, Designation, and Employee itself.

Once this is done, click on the ‘Assign’ button to assign the Salary Structure accordingly.

Additional Salary is something that an Employee receives from the company they work for, other than their usual pay.

HR offers you a feature called Additional Salary to add or deduct ad hoc salary for a particular Employee while processing the Payroll. Some examples of Additional Salary could be Performance Bonus, Deputation Allowance, Arrears, Incentives, or other adjustments.

To access Additional Salary, go to:

> Home > Human Resources > Payroll > Additional Salary

1. Prerequisites 

Before creating an Additional Salary, it is advisable to create the following:

• Employee
• Salary Component

2. How to create an Additional Salary 

1. Go to the Additional Salary list, click on New.
2. Select Employee.
3. Select Salary Component.
4. Enter the Amount.
5. Enter the Payroll Date. If Payroll Date for Additional Salary is in the interval when the salary is processed, it will be added to the earnings/deduction.
6. Save and Submit.

Select the ‘Overwrite Salary Structure Amount’ checkbox to overwrite the Additional Salary component on the Salary Structure amount. Additionally, the ‘Deduct Full Tax on Selected Payroll Date’ checkbox can be selected if full tax needs to be deducted on the Additional Salary component for that particular payroll date.

3.Features 

3.1 Recurring Additional Salary 

This feature allows users to create an Additional Salary for a fixed interval. When ‘Is Recurring’ is checked you need to fill ‘To Date’ and ‘From Date’. This will add or deduct the additional salary amount for this employee within the selected date range and it will be reflected in the Salary Slip for the employee. The Additional Salary will be repeated every month between ‘From Date’ and ‘To Date’ interval.

Retention bonus is a payment or reward outside of an employee’s regular salary that is offered as an incentive to keep a key employee on the job.

HR allows you to configure Retention Bonus for an Employee for a particular period.

To access Retention Bonus, go to: > Home > Human Resources > Payroll > Retention Bonus

1. Prerequisites 

Before creating a Retention Bonus, it is advisable to create the following:

• Employee
• Salary Component

2. How to create a Retention Bonus 

1. Go to Retention Bonus list, click on New.
2. Select Employee and Bonus Payment Date.
3. Enter the Bonus Amount.
4. Select the Salary Component under which you want to give the bonus.
5. Save and Submit.
6. On submit, ‘Additional Salary’ document of the specified ‘Salary Component’ is created. This will be fetched while running Payroll Entry.

   

Employee Incentives are a way of compensating and motivating employee performance apart from the usual salary.

When an organization wants to encourage productivity among its employees, one of the options available is rewarding the Employee with an incentive. HR allows you to create Employee Incentives as and when required for a particular payroll entry.

To access Employee Incentive, go to: > Home > Human Resources > Payroll > Employee Incentive

1. Prerequisites 

Before creating an Employee Incentive, it is advisable to create the following:

• Employee
• Salary Component

1. How to create an Employee Incentive 

1. Go to Employee Incentive list, click on New.
2. Select the Employee.
3. Enter the Incentive Amount.
4. Select the Payroll Date.
5. Select the Salary Component under which you want to give the incentive.
6. Save and Submit.
7. On submit, the ‘Additional Salary’ document of the specified ‘Salary Component’ is created. This will be fetched while running the Payroll Entry.

   

Tax exemption is the monetary exemption of income, property or transactions from taxes that would otherwise be levied on an Employee.

At the beginning of a Payroll Period, employees can declare the amount of exemption they will be claiming from their taxable salary. HR allows you to specify tax exemption category/sub-category, tax exemption amount and other related information in the Employee Tax Exemption Declaration form.

To access Employee Tax Exemption Declaration, go to:

> Home > Human resources > Employee Tax and Benefits > Employee Tax Exemption Declaration

1. Prerequisites 

Before creating an Employee Tax Exemption Declaration, it is advisable you create the following:

• Employee
• Employee Tax Exemption Category
• Employee Tax Exemption Sub Category

2. How to create Employee Tax Exemption Declaration 

To create a new Employee Tax Exemption Declaration:

1. Go to: Employee Tax Exemption Declaration > New.
2. Select the Exemption Sub Category and Exemption Category.
3. Enter the Maximum Exemption Amount and Declared Amount.
4. Save and Submit.

   

The Total Exemption Amount will be exempted from annual taxable earnings of the employee while calculating the tax deductions in Payroll.

> Note: Employees can only submit one Employee Tax Exemption Declaration for a Payroll Period.

3. Features 

3.1 Employee Tax Exemption Category 

Exemptions from taxable salary are usually restricted to spendings on particular categories decided by the Government or regulatory agencies. HR allows you to configure various categories which are allowed to be exempted. Examples of these (for India) could be, 80G, 80C, B0CC etc.

You can configure Employee Tax Exemption Category by going to, Employee Tax and Benefits > Employee Tax Exemption Category

3.2 Employee Tax Exemption Sub-Category 

Under each category, there could be many heads for which the exemptions are allowed. For example, in India, sub categories under 80C could be Life Insurance Premium

You can configure Employee Tax Exemption Category by going to, Employee Tax and Benefits > Employee Tax Exemption Sub-Category

3.3 HRA Exemption (Regional – India) 

For the current fiscal year, in India, House Rent Allowance (HRA) exemption from taxable earnings is the minimum of:

• The actual amount allotted by the employer as the HRA.
• Actual rent paid less 10% of the basic salary.
• 50% of the basic salary, if the employee is staying in a metro city (40% for a non-metro city).

As part of the Employee Tax Exemption Declaration, employees can also fill out the HRA Exemption. HR calculates the exemption eligible for HRA and exempts it while calculating the taxable earnings.

Enter the Monthly House Rent and check the ‘Rented in Metro City’ checkbox if applicable and submit the form. The Annual and Monthly HRA Exemption will be automatically calculated.

Once the declaration is submitted, you can submit the proof of your tax exemption by clicking on the Submit Proof button.

> Note: HRA component needs to be configured in Company master under HRA Settings sections for the HRA exemption to work.

Employee Other Income is a document to declare other income of an employee from different sources.

Other income of an employee is also important to calculate the income tax liability of an employee. In HR, an employee can declare their other income using this document.

To access Employee Other Income, go to: > Home > Human Resources > Employee Tax and Benefits > Employee Other Income

1. How to create an Employee Other Income 

1. Go to: Employee Other Income > New.
2. Select the Employee and Company.
3. Select the Payroll Period.
4. Enter the Amount and its Source.
5. Save and Submit.