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Provident & Gratuity Funds

PrismERP PF & Gratuity Fund Accounting is a key feature of its robust Human Capital Management (HCM) system. This module is designed to record, monitor, and integrate provident fund (PF) and gratuity fund transactions directly into the organization’s financial accounting.

Key Functionalities​

  • Full PF & Gratuity Fund Accounting The system maps specific GL (general ledger) accounts for all PF and gratuity-related transactions. This ensures contributions, refunds, gratuity payments, and interest flows are accurately recorded and fully traceable in the financial system.

  • Integration with Payroll PF and gratuity contributions are automatically processed with payroll. Any employer or employee contributions, deductions, or gratuity accruals reflect in the ledger without manual intervention.

  • Refund, Withdrawal & Gratuity Payment Handling The system supports PF refunds, withdrawals, and gratuity disbursements when an employee leaves or retires. All transactions include proper accounting entries and a complete audit trail.

  • PF & Gratuity Loan Management Employees taking loans against PF or gratuity balances are tracked seamlessly. PrismERP manages loan repayments, interest, and principal adjustments, reflecting accurate fund balances.

  • Policy & Account Configuration Admins can define PF and gratuity fund policies, configure accounts for contributions, refunds, and payments, and set up multiple rules for interest calculation and gratuity accruals.

  • Audit & Reporting PrismERP generates detailed PF and gratuity fund reports for auditing, compliance, and financial transparency. All journal entries are maintained for easy tracking.

Why Provident & Gratuity Fund Accounting Matters in PrismERP​

  • Ensures Statutory Compliance: Meets legal requirements for provident and gratuity fund accounting.

  • Improves Financial Transparency: Integrates employee fund transactions into the general ledger for clear liability tracking.

  • Reduces Manual Work: Automates PF and gratuity entries alongside payroll processing.

  • Supports Employee Self-Service: Employees can view PF balances, gratuity accruals, refunds, and loan status via the ESS portal, enhancing trust and engagement.