Use Payroll > Full and final when a staff member leaves. It needs the Advanced payroll level. See Payroll: rate changes, arrears, adjustments and overtime.
Before you start
Set the leaving date on the staff record. Decide which leave types can be encashed and the notice rules in Payroll > Payroll settings (leave encashment list, the divisor for a day's wage and which components count as wages). The settlement says "No leave type is encashable (Payroll settings)" if none is set.
Steps
- Open Payroll > Full and final and press New settlement.
- 1. Who and why. Choose the Staff member and the Reason for leaving. The leaving date comes from the record. Optionally choose Paid with the salary of a month (empty means the month of leaving). Press Next.
- 2. Notice, loans and gratuity. Enter Notice required (days) and Notice served (days), and what to do For the days short (recover or not). Tick Pay gratuity when the person is eligible. Add any exemption already used before. Press Work it out.
- The settlement opens. Last working day, Service, what is Paid and what is Recovered, and the Net of the settlement show. Warnings are listed under Please check.
- How it was worked out shows the maths: for example wages divided by a day divisor for leave encashment, with a cap.
- To change inputs (days to encash for a leave type, notice days) edit them and press Save and work out again.
- Maker and checker. The person who prepared it shows. Another person presses Approve. If you approve your own, give a reason.
- The approved amounts go into the pay run of the chosen month as adjustments. Print the statement gives the F&F statement with the settlement and that month's line. It says "settled" once that run is paid.
To undo, press Cancel the settlement while the run is a draft.
What is included
- Salary for the last month, for the days worked.
- Leave encashment (the tax-exempt part is worked out from the rule).
- Gratuity when eligible (exemption considered).
- Notice pay in lieu or recovery.
- Outstanding loans: recovered in full with the pay run, or the instalments continue if you choose so.
- Bonus and arrears due.
Common questions
The net is negative.
Recoveries are larger than payments. Check loans and notice. The statement shows who owes what.
Gratuity is zero.
The person has not completed the minimum service, or you did not tick the option.