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

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

How to Create Lead in ERPNext ?

Lead is potential customer,someone who can give you business.

Follow these steps to create New Lead in ERPNext

1)Goto CRM->Documents->Lead->New

In the Above figure you can see, How Lead form looks

2)In the Lead form you can add details about Lead ie

Person Name-Lead Name

Organization Name-The organization which lead belongs to

Source-How he got to know about your company like by Advertisement,Blogspot,Call,Website

Status-Status of the lead ie the person is interested/seeing opportunity

Lead Owner-Who is lead owner

Next Contact By-Person who is contacting to lead next time

Next Contact Date-On which date and time person is contacting to lead

Address & Contact-Here you can add lead address,Mobile No,website etc

More Info-Here you can choose Lead Type,Market Segment,Request Type etc

In the above figure you can see how we entered lead information

3)After entering all information Save the form

In the above figure you can see,When Lead is converted into Customer you can create customer from lead by clicking Create Customer in the right side of lead form. You can also create Opportunity and Quotation from Lead.

Note:

When Customer created from Lead then Lead status will become Converted.

How to create Customer in ERPNext ?

Customer is a person who buys goods or services from a shop or business or seller.

Follow below steps to create customer in ERPNext

1)You can create customer via

Selling->Documents->Customer->New

or

Accounts->Documents->Customer->New

or

CRM->Documents->Customer->New

In the above diagram we are going to create customer via Selling->Documents->Customer->New

In the Customer form add all customer details like

Full Name-Customer full name

Customer Group-Select the customer group like Individual,Commercial or you can create new customer group by clicking Create a new Customer Group in Customer Group field

Type-Here you can select customer type like Company/Individual

Territory-Here you can select customer territory. You can also create new territory by clicking Create a new Territory

From Lead-If customer came from lead then here you can select the lead

Tax ID-Here you can enter customer Tax Id

Customer Details-Here you can add customer details

You can also add other information like Currency,Price List,Credit Limit etc in Customer form

Sales Partner-Sales Partner is a 3rd party distributor/dealer/reseller who sells the company products, for a commission. Here you can add details of your sales partner or sales person like his/her commission,contribution,incentive etc

2)After entering all data save the customer form and the form looks like

3)When you create new customer,ERPNext will create Accounting Ledger automatically for customer under Account Receivable in the Company set in the customer record.

4)You can also create Customer while entering new Sales Order/Delivery Note/Sales Invoice

In the above figure you can see while creating new Sales Order we can create a new Customer by clicking create a new Customer in Customer field.

How to enter online transactions in ERPNext?

If you are selling goods online and you are receiving payments online through any payment gateways like Payumoney,Paytm,CCAvenue and you are paying TDS for that then here is the solution for how to enter online transaction in ERPNext.

Step1) Consider that if you are a selling a product for Rs 250 then you have to create sale invoice for Rs 250 only. Customer will pay full amount for that and TDS amount will be deducted when transaction completes(ie When you receive that amount in bank).

Consider that  you are using Payumoney payment gateway and payumoney charges 2% TDS and 14% tax on that. If customer pays 250 then payumoney charges 2% on that ie Rs 5 and 14% Tax on that ie Rs 0.7. Total Payumoney charges is Rs 5.7 and you will receive Rs 244.3 in bank.

Step2) While entering JV the Customer Account should be in credit side and your bank account should be in debit side and TDR charges will be in debit side.

Your JV should look like above.

How to create Journal Entry in ERPNext?

All types of accounting entries are made using the Journal Entry or Journal entry is an entry to the journal. Journal is a record that keeps accounting transactions in chronological order, i.e. as they occur. Ledger is a record that keeps accounting transactions by accounts. Account is a unit to record and summarize accounting transactions.

Follow these steps to create Journal Entry in ERPNext

1)Goto Accounts->Journal Entry->New

you can see in the above figure,

In the New Journal Entry

Voucher Type-Here select the voucher type like if you doing entry for bank transaction then select Bank Entry or if you are entering cash transaction  then select Cash Entry in Voucher Type

Posting Date-On which date you are posting the JV/Journal Entry

2)Add Accounts details in accounting field

In the above figure you can see

Account-Select respective account head

Party Type-Here Party Type means Supplier/Customer

Party-Select the party name

Cost Centre-Select Cost Centre for income/expense

Amount-Enter the amount to Debit/Credit

Reference Type-Select the reference type like sales invoice,purchase invoice,journal entry

Reference Name-Select the reference name like sale invoice no/purchase invoice no

Is Advance-Select “No” if you are not taking advance amount or Select “Yes” if you want to make selectable in an invoice.

3)After adding rows for individual account entries,Credit/Debit amount,Reference,the Journal Entry look like

In the above diagram you can see, Debitor and Creditor accounts and amounts. Creditor and Debitor amount should be equal, otherwise it will show difference amount in Difference field(Difference(Dr-Cr)) and also you cannot submit Journal Entry.

Difference(Dr-Cr)-The “Difference” field is the difference between the Debit and Credit amounts. This should be zero if the Journal Entry is to be “Submitted”. If this number is not zero, you can click on “Make Difference Entry” to add a new row with the amount required to make the total as zero.

4)From Purchase Invoice/Sales Invoice you can create/generate Journal Entry/Payment Entry

In the above diagram you can see,you can create/goto Journal Entry by clicking Payment button in Purchase Invoice and it is same in Sales Invoice also.

5)Here you can see some common journal Entries for Food and Beverages/Telephone Bill/Rents