Compute and pay final pay when an employee leaves
Prepare last pay with prorated 13th month, unused leave and loan recovery, then approve, post and disburse it.
HR › Final Pay › New Final Pay Computation.
1. Start the computation
Pick the employee, the separation date and the separation reason (resignation, end of contract, termination for just cause, redundancy, retrenchment, closure, disease, retirement or other). Continue with Auto-Compute Prorated 13th Month & Unused Leave.
2. Review the amounts
GodoERP draws on posted payroll and leave balances to compute:
- Basic salary earned this year and the prorated 13th month.
- Unused leave that is convertible to cash.
- Loan balance recovered from the final pay.
- Your own entries for Unpaid salary, Separation pay, Other earnings, Other deductions and Notes.
You see Gross Final Pay and Net Final Pay. Use Recompute after changing anything.
3. Approve, post and disburse
- Approve the computation.
- Post to GoDoBooks so the journal entry is created.
- Disburse Final Pay: choose the payment date, method and the bank or cash account, then Post Disbursement.
The page tracks Amount disbursed and Balance due, and supports partial payments.
Corrections
Void a posted final pay to create a reversing entry dated today. Any loan balance it recovered is restored.
Important: Post all of the employee's payroll first, so the computation sees the full year. Ask your accountant to review final pay for dismissals.