How to Process a Full and Final Settlement in CrmLeaf
All editions. Requires the Payroll add-on module to be enabled for your account by an Administrator.
Availability: All editions. Requires the Payroll add-on module to be enabled for your account by an Administrator.
Overview
A full and final settlement is the closing calculation when an employee leaves: everything owed to the employee and everything recoverable from them, resolved in one record. CrmLeaf handles full and final settlement as part of the payroll engine, drawing on the employee's salary, attendance, leave and gratuity data.
How It Works
The settlement is prepared after the employee's last working day is known and their time and salary data for the final period is complete. Gratuity, where it applies, is calculated and included.
Record exit → Close time and salary data → Calculate gratuity → Prepare settlement → Review and record payment
- The settlement depends on accurate joining and exit dates on the employee record.
- Attendance, approved leave and approved overtime for the final period must be complete first.
- Gratuity or end-of-service entitlement is calculated separately and included in the settlement.
- Statutory deductions may still apply to a settlement, so review them with your advisor.
- Company assets assigned to the employee should be recovered as part of the exit process.
Who Can Use This Feature?
Administrator
- Prepare a full and final settlement for a leaving employee.
- Include gratuity or end-of-service entitlement in the settlement.
- Review the settlement before it is approved for payment.
- Confirm final payroll, leave and asset positions before closing the record.
This functionality is available only to Administrators.
Prerequisites
- The Payroll add-on module enabled for your account and your role.
- The employee's exit date recorded on their employee record.
- Attendance complete and all leave and overtime requests for the final period actioned.
- An active salary record for the employee.
- Gratuity or end-of-service entitlement determined where it applies.
- Confirmation from your compliance advisor on the statutory treatment of the settlement.
For Administrators
Step 1: Record the exit and close the final period
What to do: Record the employee's exit date. Then confirm attendance for the final period is complete and that no leave or overtime request for the employee remains pending.
What to verify: Leave balance and attendance for the final period are final, because both affect the settlement.
Step 2: Confirm the salary position
What to do: Confirm the employee's salary record, including any increment recorded during the final period, and any variable component values still to be paid.
What to verify: The salary basis you will settle on is correct and approved.
Step 3: Calculate gratuity or end-of-service entitlement
What to do: Calculate the gratuity or end-of-service amount using the rule confirmed for the employee's country of employment.
What to verify: The service period and salary base used match the applicable rule.
Step 4: Prepare the settlement
What to do: Create the full and final settlement for the employee, entering the amounts payable and recoverable. Complete every mandatory field, then select Save.
What to verify: Every amount is supported by a record elsewhere in CrmLeaf or by an approved document.
Step 5: Recover assets and outstanding items
What to do: Confirm that any company assets assigned to the employee have been returned, and that outstanding expense claims and advances are resolved before the settlement is finalised.
What to verify: Nothing recoverable is missed, since a settlement is difficult to revisit after payment.
Step 6: Review, approve and record payment
What to do: Have the settlement reviewed and approved by your finance function, then record the settlement outcome in CrmLeaf and pay the employee through your normal banking process.
What to verify: The final figure is what was approved, and statutory deductions have been applied as your advisor confirmed.
Expected Result
A full and final settlement record exists for the leaving employee in F&F Settlements, with gratuity or end-of-service entitlement included, reviewed and ready for payment.
Important Notes
- Menu names and their position can differ between product editions and can be customised for your account, so your sidebar may not match these paths exactly. Use Search or your Quick Access items if you cannot find a screen.
- Payroll is a paid add-on module. Confirm it is included in your plan.
- Do not prepare a settlement before the final period's attendance, leave and overtime are complete.
- Statutory deductions on a settlement, notice-period treatment, leave encashment rules and end-of-service entitlements are set by the relevant government authorities and employment laws, change over time, and must be confirmed with a qualified compliance advisor before payment.
- Settlement timing may itself be regulated in your jurisdiction. Confirm the deadline that applies to you.
- This article is documentation, not tax or legal advice.
Common Scenarios
Example: resignation with unused leave. The Administrator finalises attendance and leave for the notice period, confirms the leave balance, includes the encashment treatment confirmed by the organisation's advisor, adds the calculated gratuity, and prepares the settlement.
Example: an employee with an outstanding advance. The recoverable amount is included in the settlement so that the net figure reflects both what is owed to the employee and what is recoverable from them.
Troubleshooting
| Issue | Possible Cause | Resolution |
|---|---|---|
| A settlement cannot be created for an employee | The exit date is not recorded, or the employee has no salary record | Complete the employee record and salary record, then create the settlement. |
| The leave balance in the settlement looks wrong | Leave requests for the final period are still pending | Action all outstanding leave requests, then prepare the settlement again. |
| Gratuity is missing from the settlement | The gratuity amount was not calculated or not included | Calculate gratuity for the employee and include the amount in the settlement. |
| The final month's salary is not reflected | Payroll for the final period has not been processed | Process payroll for the final period, then prepare the settlement. |
Frequently Asked Questions
Does a settlement replace the final payslip?
The settlement is the closing calculation on exit. Process payroll for the final period as normal so the final salary is recorded, then prepare the settlement.
Are statutory deductions applied to a settlement?
That depends on the applicable law and the components involved. Confirm the treatment with a qualified compliance advisor.
Can a settlement be revised after it is saved?
Confirm with your Administrator which changes your role can make. In practice, review the settlement thoroughly before it is approved for payment.
Where is gratuity calculated?
In the gratuity calculation, which is then included in the settlement.
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