IT services
Replacing a legacy HRMS with a payroll run that reconciles to the rupee
IT services firm, Delhi, 30 employees
By Asif Mulani, who built Frappe Sheets · Published
In numbers
Figures from the running system.
- Slips in the verified run
- 30
- Slips in the verified run
- UAT cases passing
- 100%
- UAT cases passing
- Statutory heads computed and proven
- 5
- Statutory heads computed and proven
- Per-user licence fees
- 0
- Per-user licence fees
Outcome
In the verified month all 30 slips reconciled to the rupee and every UAT case passed, and there's no per-seat licence to pay.
The situation
Their HRMS cost a lot per seat and didn't show how it worked out statutory deductions, so finance rechecked payroll by hand every month.
What we did
- 01Set up Delhi's statutory rules one at a time: no professional tax, ESI on gross pay up to the threshold, and PF capped on basic
- 02Wrote the expected values by hand first, then ran the month against them
- 03Annualised tax over a declared payroll period, so someone who joins mid-year doesn't have too little tax deducted
Two more things we did
- Worked out every earning from the base, so loss of pay reduces the whole gross in proportion
- Packaged the setup as two reusable apps, so the next implementation starts from a working baseline
Stack
Frappe HR
ERPNext- India payroll
- Frappe Cloud
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