| In most large and medium organizations payroll is | | | | capabilities, and help business run in compliance |
| an essential monthly activity, which is fairly routine | | | | with the law. |
| in nature. Depending on the size and nature of the | | | | Integration is an extremely important part to ERP. |
| organization, this activity can be fraught with | | | | ERP's main goal is to integrate data and processes |
| complexities related to calculations, deductions and | | | | from all areas of an organization and unify it for |
| statutory regulations. | | | | easy access and work flow. ERP's usually |
| Enterprise Resource Planning solution has been | | | | accomplish integration by creating one single |
| implemented in most of the big enterprises in | | | | database that employs multiple software modules |
| India and many of the mid size companies are in | | | | providing different areas of an organization with |
| the process of implementation. The ERP vendors | | | | various business functions. HR and Payroll go hand |
| are providing solutions customized to midsize and | | | | in hand in every organization and therefore ERP |
| smaller enterprises to suit their needs and | | | | system should provide robust payroll solution |
| investment capability. ERP systems are integrated | | | | which can handle local tax rules and other |
| software solutions encompassing all areas of | | | | imperatives of employee compensation peculiar to |
| operations of an enterprise like Manufacturing, | | | | each country. Localization of payroll is a very |
| Distribution, Finance, Procurement, and HR. While | | | | important prerequisite for ERP HR to take wings |
| the implementation of Enterprise systems is fairly | | | | in India. Many organizations who have |
| widespread in India, Payroll integration is usually | | | | implemented ERP HR systems have either |
| overlooked during ERP implementation and some | | | | interfaced legacy payroll to ERP or custom |
| of the companies take up payroll/HR | | | | developed payroll package in ERP system. |
| implementation as last priority | | | | The strengths of the HR and Payroll module are |
| Since the payroll operation involves multiple | | | | multiplied, when used as a fully integrated part of |
| stakeholders performing different activities, it can | | | | the broader Enterprise Resource Planning (ERP) |
| be quite cumbersome and error prone to | | | | solution. For example: |
| manually enter the payroll expense into the | | | | Financial management - detailed costs are |
| company General Ledger. Integrated HR, financial | | | | captured in Payroll and summarized at the |
| and ERP systems streamline many of the daily | | | | appropriate level in the General Ledger for |
| tasks and information processing required to | | | | effective business analysis without time-consuming |
| efficiently manage day-to-day business operations. | | | | reconciliations. |
| The integration enables both the application to | | | | Project management - seamless coordination with |
| share seamless information. As a result the | | | | the Project module offers users up-to-date, |
| expenses incurred, captured in the payroll module | | | | well-managed competence data for resourcing |
| can be reflected in the General Ledger module of | | | | projects. |
| ERP Financials, thereby preventing duplication of | | | | Performance management - managers can |
| effort and errors. Data once entered into the | | | | report, analyze and perform metrics on their |
| system multiple times can seamlessly update | | | | operations and instantly introduce required |
| other modules. The integration reduces duplicate | | | | changes, as a consequence of their findings |
| entry and redundancies and eliminates the cost of | | | | Which payroll integrates with ERP? |
| custom integration between modules. For | | | | There are various payroll software which |
| example, reimbursement of employee expenses | | | | integrates with ERP, but it is always advisable to |
| through account payable can be accomplished with | | | | have all the modules from same company as |
| payroll integration to account payable. Payroll | | | | integration is much more seamless. |
| integrated with ERP gives employees self-service | | | | |