Full and Final Overview
Quick Access : Payroll Manager > Full & Final
Accessible to : Payroll Manager
Processing the full and final (FnF) for an employee who has resigned / retired or has left the service for any other reason is managed through this page. A list of all the employees for whom FnF is pending is visible on this page. Only when the separation request of employee is approved the record is visible here.
This article explains the overall design of the process, to understand the step by step process and the calculations done during processing a full and final refer to the article on Manually processing a full and final.
Types of Full and Final
There can be two different types of full and final
1. Regular – when the employee has not been paid for some days and the FnF has to be done considering the partial salary for the last month worked by the employee
2. Recovery – when the employee has already been paid fully till the last working day or has been paid beyond last working day. In such a case a recovery is to be done
Determining Full and Final and Month
The period for full and final will depend on two things
1. What is the approved last working day of the employee
2. What was the month of the last payroll run for the employee
Different scenarios which impact the way the period of Full and Final is determined are explained below.
1. If "Include separated employees in regular payroll" = No
a) If an employee resigns with the last working day as the last day of the month, for e.g. – 30/Jun then the normal payroll for June will not have to be run. Full and Final which has to be done will include the payroll for June also. This will be considered as June FnF.
b) If an employee resigns with last working day as 20/Jun and his payroll till May has been run then the FnF for June will be created as pending.
c) If an employee resigns with last working day as 30/Jun and his payroll for June has already been run and confirmed then the FnF will be considered as July FnF.
d) If an employee resigns with last working day as any day in Mar and his payroll for March has already been run and confirmed then the FnF would be treated like April payroll run. This scenario will lead to all statutory filings for the next financial year being created. The only way to avoid this is to reset the March payroll and run it again so that this employee is excluded from the regular payroll and is handled as a March FnF.
2. If "Include separated employees in regular payroll" = Yes
a) If an employee resigns with the last working day as the last day of the month, for e.g. – 30/Jun employee would be included in June payroll. Full and Final which has to be done will be a recovery FnF and will be considered as July FnF.
b) If an employee resigns with last working day as 20/Jun and his payroll till May has been run then payroll for June will be pending and till it is run full and final cannot be done.
c) If an employee resigns with last working day as 30/Jun and his payroll for June has already been run and confirmed then the FnF will be considered as July FnF.
d) If an employee resigns with last working day as any day in March and his payroll for March has already been run and confirmed then the FnF would be treated like April payroll run. This scenario will lead to all statutory filings for the next financial year being created for all employees whose last working day is in March. To avoid this you can disable the parameter before running March payroll
FnF Status
- Pending – is the initial status but if any Payroll is pending then the row is in pink color and no action can be done. Once all the pending full month payroll are completed then the record can be taken for processing
- Draft – is when some input has been updated but the record has not been processed
- Initiated – some data has been updated and FnF saved but Provisional FnF has not been generated
- In Process – is when the Provisional FnF statement has been created. In Process FnF can be reset which will bring it back to Draft status or it can be taken forward to the next status
- Under Approval - if the full and final approval process is enabled and the record is submitted for approval then it will show this status
- Finalized – FnF has been finalized
- Paid – Payment details have been updated
- Closed - Separation record has been closed
Payroll Manager's Role
Payroll Manager has to process the FnF based on the inputs given during the separation process and also based on the calculations done by the system. The level of flexibility given to Payroll Manager can be controlled from Payroll Setup. There is a parameter "Allow Payroll Manager to override recovery/payout recommendations during Full and Final" if this is selected as Yes then Payroll Manager will be able to override the recommendations given during Separation approval and can also change the amounts recommended by the system.
Full and Final Settlement Page
There are three tabs on FnF page -
1. Pending - here you can see records which are pending
2. In Process - FnF which are being worked upon but not yet finalized are in this tab
3. Finalized - FnF records which have been finalized are moved to this tab
1. Pending Full and Final
Actions which can be done on this tab are -
1. You can process the FnF manually one record at a time by clicking on Edit button
2. If a FnF is in draft status you can delete it and bring it back to Pending status
3. You can do bulk FnF processing using for records in Pending status
If an employee's resignation has been approved and last working day is in future or if the last working day is in past but some payroll are pending the record will come in pink color and FnF cannot be processed.
Bulk processing of FnF
Steps to be followed are
- select the records by clicking on the checkbox in the first column, make sure that the FnF is in pending statusm(records which are in any other status are not downloaded)
- click on on "Download Template" button to download an excel template, a sample template is attached. If you have to process the full and final for Retainers click on "Download Retainer Template"
- fill up the details in the excel and upload it back using the "Upload" button ("Upload Retainer Template for Retainers), system will check the data for completeness and logical completeness. You can fill up the leave details for encashment, notice period recover, variable payouts, adhoc payments, adhoc deductions. Make sure the total number of leaves which are being adjusted / encashed are as per available balance, if not then system will reject the file
- click on Submit to upload the approved data, status of all uploaded records will change from "Pending" to "In Process"
2. Inprocess Full and Final
On this tab
- if you have uploaded the details using excel you can check the uploaded details by editing the record
- you can reset a record to Pending status by using Reset button on row or in bulk
- you can finalize a record by clicking on Finalize on the row or in bulk, on using the bulk option you will get a confirmation popup like shown below
If the process to take an approval for finalizing a full and final request is activated then on clicking of "Finalize" button the status will change to "Under Approval". Once the request is approved the status will change to "Finalized". If the request is rejected you will be able to see the reason for rejection and resubmit for approval after making corrections.
3. Finalized Full and Final tab
On this tab
1. You can reset records if there is any error by using the Reset button on the row or using the bulk option on top of the table
2. Update the payment details for records which are in Finalized status. Only after this step is done will the status of record be updated to Paid. You can reset a FnF till it has not been updated as Paid. To update the payment as paid there are two options -
i) Generation of payment advice - if the process has been designed for advice generation you would be able to generate the payment advice after the status has been updated as Finalized. Click on the "Generate FnF Payment Advice" button. Remaining steps are detailed in point 4 below.
ii) Manual updation - just click on "Update on Paid" button as shown above and the bank details in the employee's payroll record will be updated in the Payment Details box - if payment mode is ECS or NEFT else you will have to update the check number. The status will change to Paid
If you want to change the payment updation option from what you are seeing please get in touch with your Account Manager.
3. You can download the documents which have been generated for previously processed records in bulk. Just select the rows and use the action button on top of the table to download Provisional statements, Final FnF statements or Tax calculations as per your requirement. These statements will be downloaded in zipped format.
4. You can email the provision and full and final statements directly to the employees either one at a time or by selecting multiple records and using the bulk action button
5. Click on "Hide all Paid FnF" to clear all processed records from the page, these records can be recalled using the "Recall Hidden Record" button.
Generation of Full and Final payment advice
On click on "Generate FnF Payment Advice" you will be navigated to the page shown below -
- If you want to make the payment for some employees click on "Create Advice". If you want to stop the payment for some select those records using the "Stop Payment" button.
- The generated payment advices will be visible in In-Process documents section, only when you click on"Confirm as Paid" button will the status of the records change to Paid.
Note : Payment of Statutory Bonus to resigned employees is done as a part of regular payroll process, refer to the article on Payment of Statutory Bonus for more details.
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