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Final Settlement & Exit Clearance

Final Settlement & Exit Clearance is a key feature of PrismERP’s Human Capital Management (HCM) system that simplifies and automates the offboarding process for employees. It ensures that all dues, recoveries, and clearances are calculated accurately and completed efficiently before an employee leaves the organization.

Key Features​

  • Automated Final Settlement Calculation

PrismERP calculates the final settlement based on unpaid salary, accrued leave encashment, provident fund contributions, gratuity, bonuses, and any other statutory or contractual dues. Recoveries such as advances, loans, or penalties are automatically deducted to provide an accurate payable amount.

  • Exit Clearance Workflow

The system manages a structured exit process by tracking clearances from various departments, such as IT, Admin, Finance, and HR. Employees cannot be fully offboarded until all departmental clearances are completed, reducing errors and pending tasks.

  • Integration with Payroll & PF/Gratuity

Final settlements are fully integrated with payroll, PF, and gratuity accounting, ensuring all contributions, withdrawals, and benefits are correctly accounted for. This integration reduces manual calculations and ensures statutory compliance.

  • Document & Asset Management

PrismERP allows attaching supporting documents such as exit forms, asset return checklists, and approval notes, providing a complete audit trail for HR and finance teams.

  • Reporting & Audit

The module generates detailed reports on final settlements and exit clearances, including pending dues, completed clearances, and department-wise approvals, which aids in transparency and auditing.

Benefits of Using PrismERP for Final Settlement & Exit Clearance​

  • Ensures Accurate Payments: Eliminates errors in salary, leave encashment, PF, gratuity, and other dues.

  • Streamlines Offboarding: Automates exit workflows and departmental clearances.

  • Supports Compliance: Aligns with statutory requirements and internal policies.

  • Provides Audit Trail: Maintains records of all transactions, approvals, and clearances.

  • Enhances Employee Experience: Makes the offboarding process smooth and transparent for departing employees.