Salary Structure represents employees earning and deduction
and based on that employee salary will be calculated.
Follow these steps to create salary structure in ERPNext
1)Goto
Human Resources->Setup->Salary Structure
As you can see in the above diagram,In salary Structure
select the employee to whom you are going to create salary structure,select Yes
if employee is active in Is Active.Also add Earning and Deduction in salary
structure.
2)In the Earning select earning type like Basic,Home Rent
Allowance and in deduction select deduction type like Income Tax,Provident Fund
As you can see in the above figure,Here you can see how we
added earning and deduction types in salary structure
3)You can also create new Earning Type by clicking Create
New Earning Type in Earning Row
or you can create earning type by going
Human Resource->Setup->Earning Type->New
As you can see in the above diagram,Enter the Name and
Description for Earning Type and Save it.
Deduction type is same as earning type
4)After entering all data Save and Submit the form
5)Salary Structure will be created for employee and from
salary structure you can create salary slip for employee by clicking Make
Salary Slip
Note:
1)If your employee takes more leaves than allocated or
employee runs out of leaves or employee takes leaves without approval(via Leave
Application) then these comes under Leave Without Pay(LWP). If your
organisation supports LWP then Check Leave Without Pay in Earning and Deduction
type.ERPNext will automatically deduct salary in case of LWP. Salary Amount
will be calculated based on LWP and total number of working Days.
As you can see in the above diagram,If your organisation
support LWP then Check Reduce Earning/Deduction for Leave Without Pay(LWP) in
Earning/Deduction master.In the figure we showed LWP for earnings and it is
same in deduction also.