Provident Fund Management

In this feature, company can create polices which allows you to set value of contribution for both parties (Employee & Employer), their payment terms etc.

1) Configure Provident Fund
Process:
Settings --> Configuration --> PF & Gratuity (tab)
Entry Process:
First you need to declare which employment type will be eligible for Provident Fund. You can also set a time period of those who are eligible for Provident Fund. Determine that from where Provident Fund will be deducted, whether it’s from Basic or Gross salary. Now you need to set the deduction rate for contribution of both Employee & Employer.

 

From Provident Fund Applicability settings, you may choose what type of employees you would want PF to be applicable for.

From Provident Fund Accounts Settings, you may choose which accounts are responsible for the transactions related to PF.

From Provident Fund Calculation and Contribution Settings, you may choose on what basis you are planning to perform the PF calculation.

 

2) Payment Slabs
Process:
Settings --> Payroll --> PF Refund Rule
Entry Process:
First is to determine which service period is applicable for this rule. Then specify how much Employee Contribution that employee can get. You can also configure the percentage of Investment return that employee can get from both parties contributed amount.

Suppose if any employee works less than 2 years, that employee will get only his/her contribution & no investment return will be added.
To do this, you need to set value ‘0’ to ‘1’ in Service from & to respectively. Now Set value 100 in employee contribution as that employee refunded all of his contribution & set value to ‘0’ in Employer Contribution as he/she doesn’t get any contribution. Also set the value ‘0’ in both income gain information.

Active Payroll Schedule:

Calculation Process:
Payroll -->Active Payroll Schedule --> Post Schedule
 

From the menu, you may now select PF and then select Active PF schedules. On the right hand side, you can see an option called ‘Post Schedule’ where you can choose for which month you want to post the PF.

Make sure to backup regularly before posting. You can take backup from Settings --> Backup and Restore.  

At this stage, it is very important to note that it is not suggested to delete an active PF schedule if you have made any errors in the PF calculation process. You are advised to select the ‘Rollback’ option to go back and edit any necessary changes before making final posting.

Entry Process:
Provident Fund calculation is done automatically by the system when the salary is calculated. You can view different report regarding Provident Fund.

3) Payment:

Process:
Employee-->Employee Closing --> Final Settlement
Entry Process:
To refund PF to your employee, you need to do close that employee. All you need to do is selecting that employee then employee closing types (resign/terminate/retire) and finally approve it. In final settlement, you will find total refundable amount in Provident fund row. 

4. Distribute PF income:

You may distribute PF income by selecting ‘Distribute PF income’ from PF on the menu. After selecting, you will land in a page such as:

 

By clicking next, you will go through the further steps to input the necessary data related to PF income and the employee selected to get the PF income.

 

After clicking on Post Accounts on the right, you will land here. Click on Save to finalize the transaction.

 

 

5) PF Posting:

PF accounts posting from PF menu looks like this: