The Full and Final Settlement process is where all the dues payable to and receivable from the employee who has resigned/separated are calculated.
There are several steps in the processing of the Final Settlement where the first step is to separate or offboard the employee.
Click “How to offboard an employee” for more details.
On completion of the offboarding of the employee, the name will reflect in the Exit grid.
To view the same, go to Team-->Directory-->Manage Exits.
Please find the steps to process the Final Settlement calculation
Select the Employee for whom the FFS process has to be done.
Search for the Employee by typing in the Employee Name/code.
You can also select the month from the drop-down.
Once you select the month all the separated employees for that month will be displayed.
Click the “Edit” button if you wish to view the exit details like the FFS process type.
You have two options under the Edit drop down-Process and Revoke.
Click “Process” to process the full and final settlement. This will calculate all the dues payable to and receivable from the employee.
Once the process is completed you will be able to arrive at the final amount which is due from/payable to the employee.
Click “Revoke” to cancel the full and final settlement. This will cancel the final settlement calculations and the employee will become “Active”.
If you wish to make any changes to the employee exit details like the last working date, resignation date, ffs process type, you have to revoke the employee and update the necessary changes. After which you can add back the employee to the mange exit with the corrected information.
Pls note: You cannot make any changes to the employee's exit without revoking the employee.
Process the Full and Final Settlement
Click” Process” from the “Edit” drop-down.
The details entered during the “Offboarding” of the employee are automatically displayed like the
- Resign Date
- Last Working Date
“Settlement Process Date”. The date will be automatically displayed which is the Last working date.
Please Note: You can change it to a future date, but the date cannot be lesser than the “Last Working Date”.
Click On “View Pending Details” to see the status of the pending request of Leave, Comp Off, FBP Claim & Reimbursement.
Make sure that there are no pending requests in the view pending application before processing the Final Settlement.
In case there are any pending approvals, the Reporting Manager must approve, or even the HR/Admin can approve the same.
Click on “View declaration audit details” to view the audit status relating to the Income Tax Declaration.
During the final settlement process, only the Audited and Approved Investment proofs are considered for Income Tax Calculation.
If the "Is Audited" is shown as “No”, then the proofs will not be considered, and applicable Income Tax will be deducted from the employee’s Final Settlement.
Loss of pay Details: LOP days will be fetched automatically from LMS & Bio-Metric. You can also enter the LOP days manually.
The LOP data from LMS and Biometric cannot be edited. If you wish to make any changes, please contact the Support team.
To contact the Support team, please click here.
- Earned leave will be automatically fetched from Leave Management System (LMS) and the leave encashment amount will be calculated based on the formula configured.
- If the LMS module is not opted, earned leave should be manually entered, and the leave encashment amount will be calculated based on the formula configured.
Note: The system also allows the overriding of the Leave Encashment amount.
To enable the override, you need to check the box “Allow edit of Leave Encashment amount” under Settings.
Go to Settings --> Configure Rules --> Advance Settings
- Actual Pending amount: The pending loan data will be taken from the Loan Module. The employee’s pending loan amount will be displayed. This will be the amount that will be deducted in the final settlement calculation.
- Deduction Amount: In this field, you can enter/override the loan amount to be deducted.
- FBP Actual Unclaimed Amount: Employee’s FBP Unclaimed amount will be displayed. The unclaimed FBP amount will be paid as taxable.
- FBP Unclaimed Amount Override: In this field, you can enter/override the FBP Unclaimed amount manually.
- Pay: Select this option if there is any notice period payable by the employer.
- Recovery: Select this option if there is any recovery from the employee.
Enter the Notice Period (days). Based on the days entered in this field, the system will calculate the Actual Notice Amount.
- Notice Amount-Override: In this field, you can enter/override the Notice Amount manually.
Note: Only if the Notice pay and Notice recovery component is created and mapped, it will reflect in the FFS report.
To know how to create a Notice Pay/Recovery component click here.
- The system will automatically calculate Gratuity based on employees' DOJ and LWD.
- Calculated Years and Amount can be seen in the Actual Gratuity Period (Years) & Actual Gratuity Amount.
- You can enter/override the period/amount manually in Gratuity Period (Years) & Gratuity Amount
To know how to create a gratuity component click here.
After entering all fields click “Process Settlement”.
If there are any one-time payments or deductions, the same needs to be updated in the “Adjustment Amount”.
Enter the amounts against the relevant pay head.
You can view the settlement details.
The tax will be deducted based on the calculations.
If there are any tax adjustments you would like to update, they can be updated under “Adjustable IT”.
This amount will override the system-calculated tax.
Check/Validate if all the information is correct.
Check the box “Mark as Settled”.
In the Manage exit search option, the settlement process will reflect “Yes” if the “Mark as Settled” option is checked.
You can go back to previous pages to edit/update the correct details if there are any corrections.
Click on "Report", to generate the Full and Final Settlement (FFS) Report.
Please note that all the payments related to FFS are to be processed manually. If you want the payment details like payment mode, bank account details, and payment date to be reflected in the FFS report then please update the payment details.
FFS payment details can be updated in 2 ways:
- While processing FFS
- After processing FFS
1. While Processing FFS
Click Process in the dropdown list next to the edit option under Manage Exits.
Click Process Settlement.
Click “Update Payment Details” at the top right.
Fill in the details.
2. After processing FFS
Go to Manage Exits
Search for the employee
Click on “Update Payment Details” at the bottom of the screen to update the payment details.
Enter the following details:
Bank and Branch Name-the name of the Bank and Branch from where the settlement payment is credited.
Transaction Date- The Date of Payment of the settlement.
Payment Mode- Select either Bank Transfer, Cheque, or Cash from the drop-down.
Your settlement is updated with the Payment details.