salary structure assignment erpnext

Salary Structure Assignment

Salary Structure Assignment form allows you to assign a particular Salary Structure to the employee.

In ERPNext, you can create multiple Salary Structure Assignments for the same Employee for different periods.

To access Salary Structure Assignment, go to:

Home > Human Resources > Payroll > Salary Structure Assignment

1. Prerequisites

Before you create a Salary Structure Assignment, it is advisable you have the following documents:

• Salary Component
• Salary Structure

2. How to create a Salary Structure Assignment:

• Go to Salary Structure Assignment list and click on New.
• Select the Employee and Salary Structure.
• Select the From Date from which this particular Salary Structure will be applicable.
• Select preferred Income Tax Slab for the employee.

Enter Base and Variable amount as per requirement. Base amount refers to the Base Salary of the Employee, which is fixed and paid out, regardless of employees meeting their goals. Variable pay, on the other hand, is the portion of sales compensation determined by employee performance. When employees hit their goals (aka quota), variable pay is provided as a type of bonus, incentive pay, or commission.

2.1 Alternate ways to create Salary Structure Assignment

You can also assign a Salary Structure to Employee(s) directly through the Salary Structure document. To assign the Salary Structure to a single employee, click on the 'Assign Salary Structure' button in the Salary Structure document.

If you want to bulk assign the Salary Structure to multiple employees, you can do so via the 'Assign to Employees' button.

You can optionally filter out employees based on Employee Grade, Department, Designation, and Employee itself.

Once this is done, click on the 'Assign' button to assign the Salary Structure accordingly.

3. Related Topics

• Employee Grade
• Designation
• Payroll Entry

Salary Structure_Edit

Hello Team,

Can we edit salary structure after submitting?

The long and short answer is no.

You can edit any submitted document via Cancel > Amend. Once you amend it you can save it again. You can check this video to know more about the same:

Hope this helps.

To cancel a salary structure, you have to cancel all associated salary structure assigments. To cancel salary structure assignments, you have to cancel all associated payslips to that salary structure assignment. to cancel payslips, you have to cancel all payroll entries (which could be several months) that generated the payslips (this will also cancel all other payslips attached to other salary structures). To correct your books, you have to fish out and cancel all Journal entries created by the payroll entries for the affected months.

And if you do walk back all these steps, after cancelling and amending the salary structure, you have to create new assignments for all employees whose salary structure assignments were cancelled and generate new payroll entries for ALL employees whose payslips were cancelled by the cancelled payroll entries (which could be several months or years).

So while it is possible to cancel and amend any document in ERPNext, cancelling a Salary Structure, especially if there are salary structure assignments attached to it, is practically not advisable as it requires several walk-back steps and a lot of altered/cancelled records which is often queried by auditors and regulators.

Thanks for your response. One more query, how do we pay incentive wherein amount varies every month?

Probably a listing of what kind of edit is in question is a good start.

Scenario 1: Editing a formula in the Salary Structure, either because the formula on the Salary Component has changed, or just editing the formula on Salary Structure whether there’re changes on Salary Component or not. I guess this can be done if the formula field on the Salary Structure is set to be updated even after submission. Probably some automation to update a Submitted Salary Structure with latest formula changes on Salary Components would help. Note: Never tested such a scenario.

Second 2: Editing a Salary Structure either to add or remove some Salary Components. This would probably be a bit tricky. It’s not possible at the moment.

That said, there’re some upcoming changes on github on a possibility to define Start and End dates when creating Additional Salary, this feature would introduce some flexibility to payroll management, by allowing definition of some recurring salary components for an employee on Additional Salary instead of on the salary Structure level.

A capability to override Salary Structure definitions at individual Salary Slip level would be better.

What’s the best way of dealing with a business scenario where the organisation has amended their salary structure and this needs to be updated without cancelling all associated documents with existing structure?

Well there’s no way to do that at the moment. A salary structure is not editable without cancelling once submitted and you can’t cancel a salary structure if it is attached to a payroll entry.

Thanks for your reply. My question is how then can I deal with this scenario where the company’s salary structure has changed?

If the old salary structure is changed, you shouldn’t cancel it because it is meant to be part of your transactional history. You can create a new salary structure and new salary structure assignments. When generating Salary Slips, only the most recent active assignment will be used.

Okay, thanks I get it.

I was just wondering how one can make minor change without having to do create new structure and salary assignments.

me asking same questions !!

Salary structures aren’t meant to be changed after they’ve been submitted. That’s a deliberate design decision. If you really need to change something, you can do it via the console or sql statements, but it will leave you with conflicting data in your system.

The reason I asked this in the first place is if there’s a minor change in the salary structure (maybe formula/% of the calculation) and want to avoid doing a new salary structure and salary structure assignments especially if the organisation has hundreds of employees. This would seem like a lot of work for a minor change.

Make sure the previous salary structure is inactive. Then Duplicate the structure, Update the Name, change or add as needed and assign the new structure to the employee with From date as when the structure is applicable.

I have very good news for countries where the rates are changing every year. In the Philippines, it is constantly changing.

The good news for formula is you can change it in the Salary Structure (the field is Allow on Submit) so you don’t have to Cancel the old one, create a new one, cancel the related Salary Structure Assignment for affected employees and assign the new Salary Structure.

However, if the value is a fixed amount (“Amount based on formula” is not ticked in “Condition and formula” and the fixed amount is typed in the Amount field ), you can’t change it so you have to create a new Salary Structure and reassign to affected employees.

HERE’S THE TRICK: To avoid the Fixed Amount changes when you are creating the Salary Component and Salary Structure, you can actually tick the “Amount based on formula” and just type the Fixed Amount in the Formula field instead. Succeeding changes in rates and fixed amount can be effected by direct editing in the Salary Structure even if submitted and there’s no need to create new Salary Structure Assignment.

This method means the “Amount based on formula” should always be ticked, the Formula field is always used, and the field “Amount” is no longer used.

Unfortunately, if the submitted Salary Structure has tick on the “Amount based on formula”, you have to create a new Salary Structure and reassign to employees, but succeding rate and amount changes will be easier with the trick above.

Hope this makes your life easier!

Please see my post above where you can make minor change on rates and fixed amount without creating new structure and salary assignment.

ANOTHER TIP: If there are hundreds of employees: After creating the new Salary Structure, you can export the existing Salary Structure Assignment records, then on the import file, clear the ID column, edit the “From Date” and the new “Salary Structure” then import it back as new Salary Structure Assignment. Finally, on the Salary Structure Assignment Report, mass select the Draft records and Submit. If you don’t change the “From Date”, the import record will be rejected as Duplicate. A workaround is you have the Cancel the existing Salary Structure Assignment records before importing.

Salary Structure Assignment Tool

The Salary Structure Assignment Tool allows you to assign Salary Structures to employees in bulk.

Home > Human Resources > Payroll > Salary Structure Assignment Tool

• 1. Prerequisites

Before using the Salary Structure Assignment Tool, it is advisable to create the following documents:

Salary Structure

• 2. How to assign Salary Structures using the Salary Structure Assignment Tool

Select a Company if it hasn't already been selected. This should also fetch its default Payroll Payable Account.

Select the Salary Structure that you wish to assign. This will fetch the Currency associated with it.

Select From Date which is the date from which you wish to assign the Salary Structure. This will cause all employees, that do not already have a Salary Structure Assignment on that date, to be loaded in the Select Employees table below.

Select an Income Tax Slab if applicable.

Use Quick Filters for filtering employees based on specific fields, or add additional custom filters through Advanced Filters.

Select suitable employees from the Select Employees table below.

You can update the Base and Variable amounts for an employee by double clicking and editing the required cell. If you wish to update these values in bulk, click on the Update button, select the appropriate field, and enter the desired amount. Click on Update.

If everything looks right, click on the Assign Structure button.

Salary Structure Assignments made using this tool will now be found in their list:

• 3. Related Topics

Payroll Period

Income Tax Slab

Salary Component

Salary Slip

Payroll Entry

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