Employee funds could be either of the following categories -

• Provident fund
• Gratuity fund
• DPS fund

From the membership screen select the Employee fund (1) Existing and new employees (non-members) will be displayed automatically upon selection of the employee fund on your left-hand side table as they are new employees. You can select one or more employees and then click on "Add to member" (2). This will prompt a small window to input the Date of membership (3). After you enter the membership date, the system will automatically create the membership of those employees.

Different rules are defined for each fund created which is applicable to all the members equally. There are different rules and parameters configured like..

• Contributory: This indicates whether the contribution to the fund is made by the employer or not and obviously, "contributory" indicates the fund is contributed by the employer in addition to the fact that it is also contributed by the employees at the same rate.
• Contribution percent: The percentage (%) indicates, the percentage of basic salary contributed by each enployee member.
• Control account: This registers a set of GL Accounts in order to prepare journals automatically.
• Company: The company field registers the company, related to the fund

Membership is transferred only when the employee is transferred from one company to another within the same group. This is triggered automatically when a transfer is posted to the respective employee profile.

A fund membership can be voluntarily withdrawn or terminated by the management or will be closed at the time of separation of the employee from the company.

Provident fund can be withdrawn partially as follows which will be taken into consideration when the profit is distributed. This withdrawal is one way transaction, can't be returned to the trustee account anymore.

The members can optionally withdraw their own membership. This is permanent, can not be revoked.

After the membership withdrawal (partial or full) is approved, accounts payable will be created automatically and let accounts department process the payments.

For any special reasons (e.g. employee on suspension) the membership of the employee can be on-hold.

When any membership is in "on-hold" status, PF contribution will be stopped and it will be started after the member status is "Active".

When Posted, the membership hold becomes effective and the member status becomes "on-hold".

If you select the on-hold as secondment, the employer's contribution will continue even the membership is on-hold.

When the membership needs to be resumed to be active, somply select the on-hold member(s) and click "Post unhold". This will unhold the member and the status of the member will become "Active".

The funds can be defined (user-definable) as contributory or non-contributory. In both cases, the employees contribute to the fund which is typically deducted from salary in the Payroll module. In the case of contributory funds, the employer also contributes (typically an equivalent amount). The deduction of contribution from salary is automatically done at the time of calculating the member's salary.

The deduction and fund loan recovery data is interfaced with members' accounts of the fund electronically with a "One-click" process that updates

• Members' Account detail
• Member account balance
• Journal entry for the Fund accounts

This interface from Payroll module updates can be done in different ways:

1. Nightly job schedule (fully automatic)
2. One-click process from the Journal screen
3. One-click process from the Member Acct detail screen

The payroll interface journal will be created once the salary payscale payroll "payment" has been created as the prerequisite.

The same Interface journal can be generated from the member account detail screen.

The rule of contribution is defined in the respective fund's profile.

A Member's account is finally settled due to the following events:

• The member is separated from the company
• The member has voluntarily withdrawn his/her membership from the fund

As explained in the organization module when and how is it generation; the final settlement of the provident fund, and gratuity fund is triggered when a separation of employees is approved.

The fund rule of the respective fund drives the entitlement and amount of benefits the employee will get.

Investment has two steps -

1. Bank-Cash entry for the investment made
2. Creation of the investment account

When the invest entry (step 1 above) is approved, the corresponding investment account (step 2 above) is created automatically by the system i.e. for end users, it is only one step (1).

When renewed, the interest rate is updated so that the interest can be calculated accurately with relevant rates for the periods.

Loan process overview:

The collection of loan instalments is totally automatic based on the loan payment schedule of the respective loan account. The loan instalment collection from Payroll to Employee funds is interfaced into the Fund account. Like in the Contribution of funds, this data can be interfaced in 3 different alternative ways.

The accounts payable module makes bridge between different transactions and payments by accounts department. For example, when the membership is withdrawn or the membership is closed due to separation, accounts payable is generated automatically when the original document (e.g. membership withdrawal) is approved

The fund balance be considered either a) independent of loan and b) net of loan amount for profit distribution. Check the appropriate option in fund rules as indicated below.

Bank or cash transactions can be processed to deal with -

1 - General - payment of expenses and receipt of misc. revenues 2 - Loan payments 3 - Early loan repayments 4 - A/P - Withdrawal of membership 5 - Final settlements

When Bank cash entries are posted, general ledger details and Trust gl account balance is updated e.g. a Fund loan of 60,000 paid reflected as follows in the Trust GL account details:

Journals can be created manually for accounting closing apart from payroll interface journals.

Menu: Master data > Accounts > Accounts Group

Menu: Master data > Accounts > Accounts

Create chart of account of the fund

Menu: Provident fund > Accounts > Chart of account

Create Chart of account

Menu: Master data > Accounts > Control account

Create the control account for each fund before starting transactions without which the interface journals will not be processed.

Note that, in order to have it functioning, you have to also maintain related control accounts in Payroll module -

a) Control account b) Control account PR