ContentsA. IntroductionB. Human Resources ChallengesC. ERP HR and Payroll Module

D. Features of HR and Payroll ModuleE. Components of HR and Payroll ModuleF. Attributes of HR and Payroll ModuleG. HR processes supported by ERPH. Management Control Modules

I. Benefits of HR module implementationJ. Some desired features in an HR and Payroll Module

K. Bibliography

A. IntroductionERP software is made up of many software modules. Each ERP software module mimics a major functional area of an organization. Common ERP modules include modules for product planning, parts and material purchasing, inventory control, product distribution, order tracking, finance, accounting, marketing, and HR. Organizations often selectively implement the ERP modules that are both economically and technically feasible.

Fig 1.1 ERP Modules

B. Human Resources ChallengesFollowing are the most commonly faced problems by HR Department in an apparel industry - • Maintaining accurate employee information• Job analysis and design• Applicant selection• Compensation• Benefit administration• Training• Governmental reporting

C. ERP HR and Payroll ModuleHR (Human Resources) is a widely implemented ERP module. HR module streamlines the management of human resources and human capitals. HR modules routinely maintain a complete employee database including contact information, salary details, attendance, performance evaluation and promotion of all employees. Advanced HR module is integrated with knowledge management systems to optimally utilize the expertise of all employees.

Fig 1.2 the client server model – all production units are interlinked through static IP and hence single database which can be accessed across the globe

Fig 1.3 Functional ArchitectureHuman Resources is the most important resource in an apparel industry. With ERP Software it is possible to maximize the potential of HR through Effective Recruitment, Staffing, Compensation, Performance Appraisal and Training. Automating HR with ERP software will reduce the work load on the HR staff, facilitate confidentiality, produce error-free information and enhance speed in accessing HR related information.

From hire to retire: Payroll accounting software system is a

comprehensive package which can be used as standalone payroll. To

compete effectively one needs to align all corporate resources – including

employees with business objectives i.e., human capital management – to

ensure that HR processes are streamlined. The payroll must be powerful,

highly flexible and designed to help you meet the payroll needs of the

organization.

Guaranteed Accurate: The payroll works meticulously to ensure the

accuracy of all Government compliance. It is convenient and easy to

use. There should be an option of internet version, cloud computing - Run

payroll anywhere and at any time using your internet connected computer.

No desktop based software should be required.

ERP systems include HR modules that offer records management, benefits administration, and payroll– Offer integrated operational and strategic level controls– Scalable and very flexible

Fig 1.4 Integration between a/c and HR

D. Features of HR and Payroll Module

It is specifically designed for the labor intensive apparel industry. Companies can monitor labor efficiency and track worker skill level.Employee training recordTrack employee skill sets and plan training accordinglyEmployee incentive schemeTie in employee incentive schemes with actual operations (such as efficiency targets etc.) – which makes such schemes more effective.Setup Deductions and Leave rulesSetup deduction and leave rules specific to a location, cost center or position.Monitor Cost Wise Manpower productivityCreate units in the organization that can be evaluated for manpower productivity and planning – these can also be tied with the line planning where requirements can be matched with manpower availability.

E. Components of HR and Payroll ModuleHR Management• Personnel records• ResumesBenefits administration• Links employee data to actual benefits• Allows selection from group of benefitsPayroll• Paychecks, tax reports, accounting dataTime and labor managementEmployee/Manager self service• Travel reimbursement• Personnel data and benefits changes• Training class

Fig 1.5 HR decisions supported by an ERP system

F. Attributes of HR and Payroll ModuleIntegrationCommon database• Provide audit trailsScalable and flexibleDrill-down capabilityWorkflow management for electronic routing of documents and other document managementProcess standardizationSecurityUser friendly and web-accessible

G. HR processes supported by ERPThe following are some key business processes (or procedures) which can be managed using ERP software. In ERP parlance, it is referred as ERP module. MIS (Management Information System) reports are shown for the module. The ERP user gets a set of pre-mapped best business practice solutions for the apparel industry. This is a general list of major input and output.

Payroll and HR

1. Master

1.1. Bank master

1.2. Bank-Branch master

1.3. Attendance Bonus setting

1.4. Bank master

1.5. Bank-Branch master

1.6. City master

1.7. Department master (Cost Center)

1.8. Designation master

1.9. Employee master

1.10. GL account Master

1.11. Grade master

1.12. Income Tax – Bank master

1.13. Income Tax – Earning and deductions (Section 80C, 80D, 80

U, 17(2) (V) etc.)

1.14. Income Tax – Form 16- Singing authority master

1.15. Labor Welfare Fund master (LWF)

1.16. Salary Heading - Earning heads & deduction heads Master

1.17. State Master

Fig 1.6 Salary Master

2. Transactions

2.1. Attendance – The number of days present by an employee will

have to be punched in the system by the concerned official of the HR

Department.

2.2. Income Tax Monthly Challan Entry

2.3. Income TAX Quarterly Acknowledgement Entry

2.4. Monthly Deductions.

2.5. Pay slip

Fig 1.7 Transactions

3. Reports

3.1. Attendance Register

3.2. Attrition Report

3.3. Bank Statement

3.4. Deduction head wise register

3.5. Earning head wise register

3.6. Employee Joining Report

3.7. Employee list

3.8. Employee resignation

3.9. ESI Report

3.10. Form 16

3.11. Gratuity register

3.12. Income Tax Yearly Report Per Employee wise (Automated)

3.13. Leave Encashment Statement

3.14. Loan register

3.15. Pay Slip

3.16. Payroll Register

3.17. PF statement

3.18. Professional Tax [Professional Tax] Statement

Fig 1.8 Bank statement

Fig 1.9 Employee list

Fig 1.10 ESIC statement

Fig 1.11 Gratuity register

Fig 1.12 Loan register

Fig 1.13 PF statement

4. ERP features

4.1. Daily wages, monthly wages – salary calculations.

4.2. Attendance types – absence, paid leave, unpaid leave, etc.

4.3. Loans and advances to employees

4.4. Employee type – manager, operator, etc.

4.5. Automatic calculation of income tax in pay-slip every month

based on Earning and Deduction feed into the system.

4.6. Modify all the transaction as many times as needed.

4.7. Salary lock. (After this no Modification is allowed, once one

Account have audited.

4.8. User Matrix – By which each user is given/denied access to

particular Report/Transaction resulting is high Security and blocking un-

authorized access.

4.9. Every Report can be easily transferred to Excel.

4.10. Very User Friendly GUI and Easy to understand Procedures

which require minimum Training.

4.11. Leave allotment master

H. Management Control Modules• HR information enables management of diverse workforce• Supports managerial decision making through query and reporting tools• Operational level controls– Maintain and update employee files– Job analysis files– Design files– Regulatory files– Skills inventory files• Strategic level controls– Human capital inventory for tracking employees– Position control linked to budgeting– Labor/management relationships– Business intelligence tools for predicting trends• Module integration is significant benefit

I. Benefits of HR module implementation• Eliminates manual process• Time-consuming• Error-prone• Better analysis• More control• Help reduce operating costs• Facilitate Day-to-Day Management• Support Strategic Planning• Keeping track of your employees – their attendance, time at work, and skill levels

J. Some desired features in an HR and Payroll Module Special Features

• Completely Masters Driven• Powerful and Flexible Business Logic to suit any kind of organization• Powerful and Flexible Organizational Structure Module• Multi Company Multi Location• Windows based easy- to- use• Different versions to suit different client requirements• Powerful reporting capabilities• Facility to print HR Letters• Facility to Email Letters / Reminders• Report Codes

• Powerful Reporting Tool• Facility to export all Reports • Powerful Security Module• Backup and Restore Module• Report Designer• Alerts• Centralized Documents Management• Facility to Scan Employee photographs and Signatures • Integrated with Payroll Software

Customizations It must be 100 % Customizable to meet specific needs. In case of any special needs HR Software must be customized as per your specific needs at a nominal cost. Implementation Support

• Master Entry / Business Policies Entry Support • Employee Masters Entry Support• Data Entry Support • Data Porting Support

Training SupportCompany must provide extensive Training to all users to get up to speed in the shortest possible time. It helps in understanding the numerous features. At the start of the implementation company must chart out the Training Map and by the end of Implementation users gain valuable expertise of the usage of the software.MaintenanceAfter Implementation and Training of all uses free Maintenance must start for a fixed period. Company shall take care of any queries during this period. The free Maintenance period lets you get settled down in the software. After you have developed confidence in the software and had a few months’ successful usages sign up for the paid Maintenance. Here you can get cost effective support on a annual basis along with new versions and updates. Internet / Intranet Based VersionHR Software should be integrated with Internet / Intranet. All employees can login securely with their username and password into the Intranet. This must be an browser based application where each Employee can interact with system and perform many activities so day to day tasks like Employee Details updating, Requests for information, Leave applications and status etc can be automated. One can also implement workflows related to Recruitment, Appraisal, Leave etc through JSM HR Software. An Employee can also view his / her (only) Payroll related details.

K. Bibliographyhttp://www.dnserp.com/dns_scope.htmhttp://www.sysoptima.com/erp/erp_benefits.phphttp://open-source-erp-site.com/erp-modules.htmlhttps://mail attachment.googleusercontent.com/attachment/u/0?ui=2&ik=f1cfeac5b8&view=att&th=13290f30b549b941&attid=0.6&disp=inline&realattid=f_gsvo8rf75&safe=1&zw&saduie=AG9B_P_RBzlIU1odTDmA2Z2ua7Ca&sadet=1316739949953&sads=vPOnmtheNISgXd7Q9c2t6F59eFchttp://www.jsmtechnologies.com/ERP/erp_modules.asp#Production Planning and Control :