Posts tagged ‘Opensource ERP’

September 1, 2012

Seamless integration of Sysfore HR & Payroll with Openbravo ERP Finance module

One of the key features required in any Human Resources and Payroll module is the ability of automated generation of financial entries for various salary processed for each of the employees. This helps all organizations to effectively track various resources cost under the respective accounting heads. In Sysfore HR & Payroll module, there are multiple levels at which you could setup these account mappings. As part of a generic setup to the finance module, the salary payable, loss of pay, overtime, standard deductions and additions accounts can be configured. This is described in the image-1 below:


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Pay Components
Pay Components form the basis of any employee’s salary structure. There are pay additions or deductions which are defined for each pay grade.

Pay Additions: Some of the organizations give “Overtime Allowance” as a pay addition component in the salary. From an organization’s financial tracking it is important for the management to see such kind of salary components paid out every month. For that purpose, the pay addition is mapped against the respective COA sub account, so that when payroll is processed the G/L Journals are created. As normal, these can be verified by the accounts team before posting the transactions. See Image-2 below for details:


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Pay Deductions: In certain countries, as per the prevailing law, organizations make certain deductions like tax and state insurance from the salary. “Employee State Insurance” is defined as a deduction component in the salary. From an organization’s financial operations it is important for consolidating such deductions and do the necessary remittance to the government based on the salary paid out every month. For that purpose, the pay deduction is mapped against the respective COA sub account, so that when payroll is processed the G/L Journals are created. As normal, these can be verified by the accounts team before posting the transactions. See Image-3 below for details:


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Once payroll is processed in the respective salary cycle, G/L Journals will get created automatically during the payroll run as in the below Image-4:


Image-4

Payroll Accounting: In the Finance module, the accounts users can review and post the G/L Journals. Thus the Sysfore HR & Payroll module gives a complete end to easy setup and integration to the Openbravo ERP Finance module. Refer Image-5 below:


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