How to do Full and Final Settlement using Odoo
Full and Final settlement Applicability: All employees
Information Gathered :
- Employee writes e-mail directly to Manager, marking copy to HR. Once Manager approves, HR will process
- Employee sends e-mail to Manager who approves the same & forwards a copy to the HR to process
- **Note: If employee resigns without notice, no Full & Final Settlement will be processed and configured in Odoo
Resignation Date: Date on which the employee applies for resignation will be considered, even not Manager approves at a later date
** Note: Notice period across Grades & Ranks is 1 month from Date of Resignation
Properties taken back/surrendered by employee upon resignation
Bag | Sim Card | Tablet | Laptop |
Company ID Card | Visiting Card | Product Brochure |
Notice Period Scenarios:
Scenario 1: Normal employee less than 5 years in the company – no advance taken (resigned within 1 year)
- Joining Date: 20-05-2018
- Resignation Date: 20-06-2019
- Relieving Date: 20-07-2019
- Salary for June 2019 would be computed
- Salary for July 2019 for 20 days would be computed
- EPF & ESI (if applicable) would be computed proportionate to number of days
- Professional Tax for the period April 2019 – July 2019 based on earned gross would be computed and deducted
- TDS (if applicable) would be taken into consideration for the period April 2019 to July 2019 would be deducted proportionately and deducted
- Full & Final Settlement Cheque would be given after 90 working days
- Full & Final Settlement Cheque would be sent as courier to the communication address
- Leave encashment not applicable
- Bonus not applicable
Scenario 2: Normal employee more than 5 years in the company – no advance taken
- Resignation Date: 20-06-2019
- Relieving Date: 20-07-2019
- Salary for June 2019 would be computed
- Salary for July 2019 for 20 days would be computed
- EPF & ESI (if applicable) would be computed proportionate to number of days
- Professional Tax for the period April 2019 – July 2019 based on earned gross would be computed and deducted
- TDS (if applicable) would be taken into consideration for the period April 2019 to July 2019 would be deducted proportionately and deducted
- Leave encashment: (Basic + DA)*no of days/30 (subject) to maximum of 100 days
- Bonus would have been paid (per Bonus policy if applicable) till 2018
- Gratuity: A fund is created with State Bank of India with a Gratuity Number for the employee. Last drawn (Basic + DA)*15/26*no of years would be alone given
- Gratuity: The above-mentioned amount would be given in the name of Company via cheque
- Gratuity: Company would deposit the money into their bank account & for the same amount give a cheque to the employee
- Super Annuation: Applicable only for employees joined on or before a specific date
- Super Annuation: A fund is created with State Bank of India with a Super Annuation Number for the employee
- Super Annuation: A computation methodology developed by SBI.
- Super Annuation: This amount would be given in the name of the employee
- Full & Final Settlement Cheque would be given after 90 working days
- Full & Final Settlement Cheque would be sent as courier to the communication address
- Gratuity cheque would be sent as courier to the communication address
- Super Annuation cheque would be sent as courier to the communication address
**Note:
- Salary Entry during his month of resignation would have already been posted
- The Other components like Salary Advance, Leave Encashment, LTA, Bonus, Gratuity etc will have to be taken into consideration for accounting entry
Account Code | Particular | Debit | Credit |
23402 | Salary Payable | 10000 | |
51005 | Leave Encashment Exp | 5000 | |
51010 | Bonus Exp | 10000 | |
51015 | LTA Exp | 10000 | |
51020 | Gratuity Exp | 25000 | |
15902 | Salary Advance | 15000 | |
23520 | Leave Encashment Payable | 5000 | |
23521 | Bonus Payable | 10000 | |
23522 | LTA Payable | 10000 | |
23523 | Gratuity Payable | 25000 | |
21003 | Bank Account | 25000 | |
Total | 75000 | 75000 |