A brief description of ERPNEXT in some HR topics

1. ERPNext
HR System

2. ERPNext
▪ ERPNext is a fully featured
ERP system designed for Small
and Medium Sized business.
ERPNext covers a wide range
of features including
Accounting, CRM, Inventory
management, Selling,
Purchasing, Manufacturing,
Projects, HR & Payroll,
Website, E-Commerce and
much more.
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3. ▪ The Human Resources (HR) Module covers
the processes linked to managing a team of
co-workers. Most important feature here is
processing the payroll by using Payroll Entry
to generate Salary Slips. Most countries
have complex tax rules stating which
expenses the company can make on behalf
of the Employees. There are a set of rules
for the company to deduct taxes and social
security from employee payroll. ERPNext
allows to accommodate all types of taxes
and their calculation.
▪ It also maintains a complete employee
database including contact information,
salary details, attendance, performance
evaluation, and appraisal records.
▪ .
Human Resources
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4. Employee
In ERPNext, you can manage Employee master. The Employee master captures
demographics, personal and professional details.
Follow these steps to create an Employee:
1. Go to Human Resources->Employee->New
2. In the employee form add employee details which are
(Series, Salutation, Full Name, Company, User ID, etc)
 Employment Details
 Job Profile
Organization Profile
Contact Details
Personal Details
Educational Qualification
 Previous Work Experience
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5. Employee
3. In Employment Details: you should list the Holiday days in order not to be
deducted from the salary
4. In Organization Profile: you should select to whom employee should reports in
Reports to field. Also you can set leave approver for an employee and you can
choose one or more Leave Approver for an Employee
5. After entering all data Save the form
6. Once an Employee is created, you can update Department, Designation,
Employee to whom he/she will report to and any data which you want to update.
Note: Before creating an 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
Go to Human Resource->Setup->HR Setting
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6. Leave Application
If your company has a formal system where Employees have to apply for leaves
to be able to qualify as paid leaves, you can create Leave Application to track
approval and usage of leaves. You have to mention the Employee, Leave Type
and the period for which the leave is taken.
Basic Workflow:
 Employee applies for leave through Leave Application
 Approver gets notification via email, "Follow via Email" should be checked for
this.
 Approver reviews Leave Application
 Approver approves/rejects Leave Application
 Employee gets notification on the status of his/her Leave Application
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7. Leave Application
Follow these steps to create Leave Application:
1. You need to allocate leaves : go to Human Resources-> Leave Allocation
Tool
2. In the Leave Control Panel: 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
organization maintains carry forward leaves), then click on allocate to allocate
leaves.
3. Human Resources > Leaves and Holiday > Leave Application > New Leave
Application
4. In the Leave Application Form enter the following details
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8. Leave Application
Leave Type: like Sick Leave, Casual Leave, Privilege Leave
 (From Date/To Date) Select dates to show 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
4. After entering all data save and submit the form
5. When employee saves Leave Application, ERPNext will automatically sends
notification to Leave Approver. 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
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9. Salary And Payroll
Payroll is the administration of financial records of employees' salaries, wages,
bonuses, net pay, and deductions.
To process Payroll in ERPNext:
1. Define Payroll Period (optional)
2. Create Salary Structure with Salary Components (Earnings and Deductions)
3. Assign Salary Structures to each Employee via Salary Structure Assignment
4. Generate Salary Slips via Payroll Entry.
5. Book the Salary in your Accounts
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10. Salary And Payroll
 Salary Structure: - represents employees earning and deduction and based on
that employee salary will be calculated.
Follow these steps to create salary structure:
1. Go to Human Resources ->Salary Structure
2. In salary Structure select the employee to whom you are going to create salary
structure, select Yes if employee is active. Also add Earning and Deduction in
salary structure*.
3. In the Earning select earning type like Basic, Home Rent Allowance and in
deduction select deduction type like Income Tax, Provident Fund*
Note : If you want to add new Earning or Deduction (just click on the component then choose create a new
salary component) or Go to Human Resources ->Salary Components ->New
Note: here you can add condition , formula or amount for salary components
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11. Salary And Payroll
4. After entering all data Save and Submit the form*
5. Salary Structure will be created for employee
 Payroll Entry:- Payroll Entry enables bulk processing of payroll for employees
company wide or employees of a particular branch, department or designation.
Payroll Entry helps you create Salary Slips in bulk for selected employees
Note: 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
organization 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.
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12. Salary And Payroll
Follow these steps to create payroll:
1. Go to Human Resources -> Payroll Entry-> New
2. Enter payroll’s details(Company, Posting Date, Payroll Frequency, Branch,
Department, Designation*, etc)
3. Click the button of get employee details
4. Save and submit
5. Go to Human Resources -> Salary Slip (you will notice that the salary slip is
created after you submit the payroll; just enter your id to search)
Note: in the payroll form if you don’t enter the Designation all employee who are in the same Department will
appear when you click on button of get employee details
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13. Salary And Payroll
 Salary Slip: - 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 these steps to create salary slip:
1. Go to Human Resource->Salary Slip->New
Or you can also create Salary Slip for employee from Salary Structure
1. Select the employee to whom you are going to create salary slip
2. After selecting the employee, the total earning and deduction will be fetched
automatically from salary structure, then save.
Note: When you open employee form and search for your name, you will find red mark with numbers in your
Leave Application, Salary Slip or any feature which is worked
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14. Appraisal
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:
1. Go to Human Resources->Appraisal Template->New
2. In the appraisal template enter the title of the appraisal in Appraisal Template
Title and also enter description.
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15. Appraisal
4. In KRA(Key Result Area) add key parameters/goals and weightage(in %) and make
sure that the overall KRA weight % should be 100%.After that Save the template
5. Go to Human Resource->Appraisal->New ( or you will be Transferred
automatically)
5. Choose the Appraisal Template
6. After selecting template the remaining form appears (choose the employee)
7. Determine the (Start Date and End Date)
8. In the Goals section add goals, weight(in%) and Score(0-5)
9. 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.
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16. My Application in
the Demo
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17. My Application in the Demo
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18. My Application in the Demo
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19. My Application in the Demo
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20. My Application in the Demo
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