Contents A. Introduction B. Human Resources Challenges C. ERP HR and Payroll Module E. F. G. H. D.

Features of HR and Payroll Module Components of HR and Payroll Module Attributes of HR and Payroll Module HR processes supported by ERP Management Control Modules

I. Benefits of HR module implementation J. Some desired features in an HR and Payroll Module K. Bibliography

A. Introduction ERP 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 Challenges Following 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 Module HR (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 Architecture Human 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 record Track employee skill sets and plan training accordingly Employee incentive scheme Tie in employee incentive schemes with actual operations (such as efficiency targets etc.) which makes such schemes more effective. Setup Deductions and Leave rules Setup deduction and leave rules specific to a location, cost center or position. Monitor Cost Wise Manpower productivity Create 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 Module HR Management Personnel records Resumes Benefits administration Links employee data to actual benefits Allows selection from group of benefits Payroll Paychecks, tax reports, accounting data Time and labor management Employee/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 Module Integration Common database Provide audit trails Scalable and flexible Drill-down capability Workflow management for electronic routing of documents and other document management Process standardization Security User friendly and web-accessible G. HR processes supported by ERP The 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. 1.1. 1.2. 1.3. 1.4. 1.5. 1.6. 1.7. 1.8. 1.9. 1.10. 1.11. 1.12.

Master Bank master Bank-Branch master Attendance Bonus setting Bank master Bank-Branch master City master Department master (Cost Center) Designation master Employee master GL account Master Grade master Income Tax Bank master

1.13. Income Tax Earning and deductions (Section 80C, 80D, 80 U, 17(2) (V) etc.) 1.14. 1.15. 1.16. 1.17. Income Tax Form 16- Singing authority master Labor Welfare Fund master (LWF) Salary Heading - Earning heads & deduction heads Master State Master

Fig 1.6 Salary Master 2. 2.1. Transactions 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. Income Tax Monthly Challan Entry Income TAX Quarterly Acknowledgement Entry Monthly Deductions. Pay slip

2.2. 2.3. 2.4. 2.5.

Fig 1.7 Transactions 3. 3.1. 3.2. 3.3. 3.4. 3.5. 3.6. 3.7. 3.8. 3.9. 3.10. 3.11. 3.12. 3.13. 3.14. 3.15. Reports Attendance Register Attrition Report Bank Statement Deduction head wise register Earning head wise register Employee Joining Report Employee list Employee resignation ESI Report Form 16 Gratuity register Income Tax Yearly Report Per Employee wise (Automated) Leave Encashment Statement Loan register Pay Slip

3.16. 3.17. 3.18.

Payroll Register PF statement 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. 4.1. 4.2. 4.3. 4.4. 4.5. 4.6. 4.7. 4.8. ERP features Daily wages, monthly wages salary calculations. Attendance types absence, paid leave, unpaid leave, etc. Loans and advances to employees Employee type manager, operator, etc. Automatic calculation of income tax in pay-slip every month based on Earning and Deduction feed into the system. Modify all the transaction as many times as needed. Salary lock. (After this no Modification is allowed, once one Account have audited. User Matrix By which each user is given/denied access to particular Report/Transaction resulting is high Security and blocking unauthorized access. Every Report can be easily transferred to Excel.

4.9.

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 Support Company 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. Maintenance After 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 Version HR 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. Bibliography http://www.dnserp.com/dns_scope.htm http://www.sysoptima.com/erp/erp_benefits.php http://open-source-erp-site.com/erp-modules.html https://mail attachment.googleusercontent.com/attachment/u/0? ui=2&ik=f1cfeac5b8&view=att&th=13290f30b549b941&attid=0.6&disp=inline&realattid=f_gs vo8rf75&safe=1&zw&saduie=AG9B_P_RBzlIU1odTDmA2Z2ua7Ca&sadet=1316739949953& sads=vPOnmtheNISgXd7Q9c2t6F59eFc http://www.jsmtechnologies.com/ERP/erp_modules.asp#Production Planning and Control :