How to create Salary Structure for Employee in ERPNext ?

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.

How to create Employee Salary Slip in ERPNext ?

Salary Slip is a statement which is given to employee to show how much money he/she earned how much taxes has been taken off.

follow below steps to create salary slip in ERPNext

1)Goto

Human Resource->Documents->Salary Slip->New

or

You can also create Salary Slip for employee from Salary Structure

In the above figure you can see,Select the employee to whom you are going to create salary slip.

2)After selecting employee,the total earning and deduction will be fetched automatically from salary structure.

As you can see in the above figure,Here you select Month and if your organisation supports LWP then mention days in LWP.ERPNext will automatically takes working day and earning/deduction type in salary slip.

3)If there is any changes in earning/deduction then you can also edit in Salary Slip.

As you can see in the above diagram,here you can edit Amount if there is any change. If salary slip is depends on LWP then Depends on Leave Without Pay is Checked automatically from salary structure in Earning/Deduction row/master.In any cases if you don't want to consider LWP then you can uncheck Depends on Leave Without Pay

4)After that Save and Submit the salary slip.

As you can see in the above figure,this is the PDF format of salary slip and you can email salary slip to your employee.

5)Using Process Payroll you can create salary slip for multiple employee

goto

Human Resources->Tools->Process Payroll

As you can see in the above figure,Here you can generate salary slip for multiple employee, as well you can generate salary slips for employees based on Department,Branch and Designation also.Select month and year which you want to create salary slips.

When you click Create Salary Slip button in Process Payroll,the salary slips will be created for active employees for the month you selected.If the salary slips are created then system will not allow you to create any more salary slip for that selected month.

Once salary slips are created, you can also check whether they are created correctly or not and you can also edit salary slips(If you want to deduct LWP).

Once salary slips are checked(if you ensure created salary slips are correct) then you can Submit all salary slips together by clicking on Submit Salary Slip button in Process Payroll.If you want mail salary slip automatically  to all employee then make sure to check Send Email.

You can also create Bank Entry/JV for salaries by clicking button Make Bank Entry in Process Payroll.

Note:

1)ERPNext will take working days automatically

If you want to include holidays in total number of  working days then

goto

Human Resources->Setup->HR Setting

in HR Setting check Include holidays in Total no. of Working Days

How to create Offer Letter in ERPNext ?

Offer Letter which confirms the details of the offer of employment including job description, salary, benefits, paid time off, work schedule, reporting structure, etc.

ERPNext allows you to record offer letters that you provided to your candidates.

Follow the below step to create New Offer Letter

1)Goto

Human Resources->Documents->Offer Letter->New

As you can see in the above figure,Select the Job Applicant(to whom you are offering job),Designation,Offer date,Status(Rejected/Accepted/Awaiting Response) and also enter offer terms and its description.Make sure to enter Terms and Condition also

2)After Entering all data Save and Submit the form

In the above figure you can see how we created new offer letter

3)Click on Print button to print the offer letter

Above figure shows the pre-defined print format of offer letter.

4)If the candidate Accept/Reject the offer letter then update the Status in his/her offer letter

How to create Leave Application in ERPNext ?

If your organisation has a system where your employee need to apply for leave and leave can be track able then ERPNext allows to create Leave Application for employee.

Follow these steps to create Leave Application

1)Goto

Human Resources->Documents->Leave Application->New

As you can see in the above diagram,

In the Leave Application Form enter the details

Leave Type-Leave Type like Sick Leave,Casual Leave,Privilege Leave

From Date/To Date-Select dates, shows Leave period which is taken

Employee-Name/ID of the employee

Leave Approver-Leave Approver is a user who can approve Leave Application for an employee and you need to mention Leave Approver list in Employee Master

2)You need to allocate leaves for employee.To allocate leave goto

Human Resources->Tools->Leave Allocation Tool

As you can see in the above figure,Select Employee Type,Branch,Department,Designation to allocate leave. And also select Leave Type like Sick Leave,Casual Leave and enter the  Leaves number in Days(Say total 10 sick leave per year for all employee).Check Carry Forward if leaves can be carry forwarded(if your organisation maintains carry forward leaves).Then click on Allocate to allocate leaves.

or

You can also allocate leave for Particular Employee, to allocate leave goto

Human Resources->Setup->Leave Allocation->New

As you can see in the above figure,Select the Employee,Leave Type and enter the total number of leaves in New Leaves Allocated for particular employee.Check Carry forward if leaves are carry forwarded.After entering all data Save and Submit the form

3)After entering all data in Leave Application form the form looks like

4)When employee saves Leave Application,ERPNext will automatically sends Notification to Leave Approver. 

See above figure,how Leave Application form looks for Leave Approver.

Leave Approver can approve/reject the leave by selecting Approved/Rejected in status and Only Leave Applications with status 'Approved' can be submitted.

Note:

What will happen after Submitting Leave Application

-In Employee Leave Balance Report(Human Resources->Standard Reports->Employee Leave Balance),Employee can see information about how many leaves are allocated,how Many leaves are taken,how many leaves are remaining

How to create Job Openings in ERPNext ?

Job Opening is nothing but job vacancy. Using Job Openings you can make record of open vacancies in your company.

Follow the below steps to create New Job Openings in ERPNext

1)Goto

Human Resources->Job Opening->New

As you can see in the above diagram,In the Job Opening form enter the details of the job positions/vacation like Job Title and its Description. If job position is open then make sure to select Open in Status.After that Save the form

Job Applicant in ERPNext or How to create Job Applicant in ERPNext ?

You can maintain list of people who have applied for a job openings in your organization.

Follow these steps to create Job Applicant in ERPNext

1)Goto

Human Resources->Job Applicant->New

As you can see in the above diagram,Enter Applicant information and for which job he/she applied.

2)After entering all data save the form

As you can see in the above figure,select job opening in Job Opening(you can also create new job opening by clicking Create New Job Opening) field and in status field you can choose Open,Hold,Replied,Rejected. After entering all data Save the form.

Note:
1)You can Also link Job Application with an Email Account. If you link Job Application with an Email account system will automatically create New Job Applicant against each emailid received on the mailbox.

To link Email account with Job Applicant goto

Setup->Email Account->New

As you can see in the above figure, enter email id and password,check Enable Incoming and in Append To field select Job Applicant. After entering all details Save it.

Expense Claim in ERPNext or How to create Expense Claim in ERPNext ?

Expense Claim is made when Employee spends money from his/her pocket on behalf of company. For example,they travel to meet customers,here they have to request for repayment via Expense Claim Form

Follow below steps to create Expense Claim in ERPNext

1)Goto

Human Resources->Expense Claim->New

As shown in the above figure,in the Expense Claim enter details for Expense Approver,Employee who made expense,Expense Date,Expense Description,Claim Amount

etc

2)After entering details expense form looks like

In the above figure you can see,How we created expense claim

3)You can also link expense claim to any project/Task

4)Expense Approver wants to approve the claim then he/she need to enter Sanctioned Amount/Approved Amount and then he/she has to choose Approval Status as Approved.If claim is rejected then he/she need to choose Rejected.You can also add comments about claim approve/rejection in comment section

In the above diagram you can see,How expense form looks for Expense Approver

5)After entering all data Save and Submit the form.

The approved Expense Claims must be converted into Journal Entry and Payment should be done.

In the above diagram you can see,By clicking button Make Bank Entry, you can convert Expense Claim to Journal Entry.

How to create Employee in ERPNext ?

Employee is a person employed for wages or salary, especially at non-executive level

Follow these steps to create employee in ERPNext

1)Goto

Human Resources->Employee->New

As you can see in the above figure,enter the details of the employee in the form.

2)Before creating employee decide on what basis you are recording employee.Every organization maintain employee record by Employee Number and few organization record employee details on Naming Series. So set how you are going to save employee details by Employee Number/Naming Series.

To set employee creation on the bases Employee Number/Naming Series

Goto

Human Resource->Setup->HR Setting

In the above diagram you can see,Set the Employee Record to be created by Naming Series/Employee Number.Here you can also set for employee payroll. You can check/uncheck Include holidays in Total no, of Working Days(If checked, Total no. of Working Days will include holidays, and this will reduce the value of Salary Per Day)

3)In the employee form add employee details 

As you can see in the above figure add employee details like Name,Role,Department,Date of Joining/Retirement,Salary Mode,Personal/Contact Details,Previous Work Experience,Educational Qualification etc

4)You can also add Leave Approver for employee as well to whom employee should Reports to

In the above figure you can see,In the Organisation Profile in Employee form select to whom employee should reports in Reports to field. Also you can set leave approver for an employee.In the above figure you can see,you can choose one or more Leave Approver for an Employee.

5)After entering all data Save the form

6)From Employee form you can create Salary Structure for the Employee

As you can see in the above figure,you can create salary structure for employee by clicking button Make salary Structure

Attendance in ERPNext or How to create employee attendance in ERPNext ?

Attendance report gives information about how many employees has been present on particular day.

Follow these steps to create employee attendance in erpnext

1)Manually you can create employee  attendance on particular date in ERPNext

Goto

Human Resources->Attendance->New

As you can see in the above figure,in the attendance form choose the employee,attendance status(Present,Absent,Half Day) and Attendance Date. After entering all data Save and Submit the attendance form.

2)You can also upload bulk attendance by using Upload Attendance Tool

Goto

Human Resources->Upload Attendance

As you can see in the above figure, you can Import bulk attendance (CSV/Excel). Before importing you need to enter data in ERPNext attendance template. So first download Attendance Template and enter the data (refer instructions to enter data in template). After that import attendance data to ERPNext.You can see in below image to know how attendance template looks like

3)You can see Employee's monthly attendance report by going to the

Human Resources->Standard Reports->Monthly Attendance Sheet

Appraisal in ERPNext or How to create Appraisal in ERPNext ?

Appraisal is the systematic evaluation of the performance of employees and to understand the abilities of a person for further growth and development or performance evaluation of an employee over a particular period.

ERPNext allow you to manage employee’s appraisals by creating appraisal template for each role with the parameters.

Follow these steps to create Appraisal in ERPNext

1) Go to

Human Resource->Appraisal->New

As you can see in the above diagram,select the Appraisal template or you can also create new template by clicking Create a new Appraisal Template.

2)After selecting template the remaining form appears

3)In the Goals section

add goals,weight(in%) and Score(0-5)

4)After adding all goals and score Save and Submit the form.You can create appraisal record for each period where you can track employee performance.

In the above diagram you can see,Here we created an employee appraisal record for the month September.Like this you can create an employee appraisal record for each period.

Note:

1)To create New Appraisal Template goto

Human Resources->Appraisal Template->New

As you can see in the above diagram,in the appraisal template enter the title of the appraisal in Appraisal Template Title and also enter description.

In KRA(Key Result Area/Key Performance Area) add key parameters/goals and weightage(in %) and make sure that the overall KRA weight % should be 100%.After that Save the template