Manufacturing
Payroll software for factories running more than one shift
Attendance against each worker's shift, paid days and loss of pay from it, PF, PT and advance lines on the payslip, and salary expense in the books when you pay.
In short
SimpleERP is payroll software for small factories in India. A pump unit marks attendance against two shifts, recovers festival advances on the payslip, adds shift allowance and overtime lines, and posts salary expense when the monthly run is paid.
Illustration of a payslip with Basic, HRA, provident fund and professional tax lines and net pay of ₹27,660.
A payroll day at Kaveri Flow Pumps
Kaveri Flow Pumps has 38 people on the rolls: coil winders who wind a stator for every monoblock pump, CNC lathe operators, assembly fitters, two testers on the test bench, a storekeeper, drivers and the office. In the dealer season from June to September the machine shop runs a second shift from 2 pm to 10 pm.
On the first of the month the supervisor brings a register full of crossings and initials, a list of advances given for school fees and festival shopping, and overtime hours written in pencil. The office adds it up in a spreadsheet, and somebody always asks why his PF changed.
In SimpleERP attendance is marked daily against each worker's shift, advances are entered on the day they are paid, and the payroll run builds every payslip from paid days. Approving and paying the run posts salary expense, PF and PT payable and the advance balances to the books.
Which salary components does a pump unit use?
One salary structure per grade covers most of the floor; machine operators on the second shift get one extra line.
- Pro-rated by paid days, with a bonus allowed to skip pro-rating
- PF on pro-rated Basic, so nothing is cut twice
| Component | Type | How Kaveri Flow Pumps sets it |
|---|---|---|
| Basic | Earning | Per grade, pro-rated by paid days |
| HRA | Earning | 40% of Basic, as seeded |
| Shift allowance | Earning | A fixed amount for second-shift operators machining CI casting bodies |
| Overtime | Earning | An amount on the payslip for hours the supervisor approved |
| Provident fund | Deduction | 12% of Basic, with the employer's share as a contribution |
| Professional tax | Deduction | Set per employee as your CA advises |
| Advance recovery | Deduction | The monthly amount fixed when the advance was paid |
How are two shifts marked without a paper register?
Create the General shift from 9 to 6 and a second shift from 2 to 10, each with its own grace minutes, and give every worker his shift. The supervisor marks the floor on one screen, or workers check in from their own phones, and late marks follow each shift's grace period.
- Mark all present, then change only the absentees and half days
- Holidays and weekly offs filled in and locked before the month starts
- Unmarked days treated as present but flagged for the supervisor to check
Illustration of the daily attendance sheet on a phone with a Mark all present button.
How do advances to winders and fitters get recovered?
Enter the advance on the day it is paid with a monthly recovery, say ₹10,000 at ₹2,000 a month. Each payroll run deducts ₹2,000 until it is settled, the advances page shows paid, recovered and due per worker, and the worker sees his own balance on his phone.
- Recovery is the set amount or the balance left, whichever is less
- Its own payslip line, so the worker sees the advance going down
What does a CNC operator's August payslip look like?
Murugan's Basic is ₹18,000 and August had 26 working days; he was absent for two. Basic is pro-rated to ₹16,615.38 and HRA at 40% is ₹6,646.15, making ₹23,261.53. PF at 12% of the pro-rated Basic is ₹1,993.85 and his advance recovery is ₹2,000, so his net pay is ₹19,267.68 before professional tax.
- Loss of pay from the two absent days, worked out from attendance
- White A4 payslip with net pay in words, and a PDF on his phone once the run is approved
One system
What payroll reads and writes
Payroll reads attendance, leave and advances, and writes salary expense and the PF, PT and advance balances to the ledger.
Manufacturing
BOMs with scrap and cost roll-up, work orders that move stock, and payroll for shop-floor staff.
See howGST billing for manufacturers
Dealer invoices for pumps, motors and spares with HSN per line, the tax split from the place of supply, and stock and cost posted with the sale.
See howInventory for manufacturers
Castings, copper wire, bearings and finished pumps by godown at weighted average cost, with reorder levels and a movement ledger behind every number.
See howAccounting for manufacturers
A double-entry ledger that a pump maker's bills, invoices, work orders and payroll write by themselves, with the month-end checks laid out.
See howProduction for small factories
Bills of materials for stators and pumps, work orders that check material and move stock on completion, and the real cost of every unit.
See howPayroll
Salary structures, monthly runs and payslips with PF, PT and TDS, posted to the books.
See how
Honest limits
What SimpleERP does not do yet
- Income tax (TDS) is not computed; you set the deduction per employee
- No preset ESI or gratuity; add them as components where they apply
- No biometric device integration: attendance is marked on the phone or entered by HR
- Overtime is not worked out from check-out times; enter the approved amount on the payslip
- Workers supplied by a labour contractor are paid on his bill as a purchase, not through payroll
Getting started
Start with payroll
Sign up with your phone
Name, phone number and a password. No card for the seven-day trial, and email is optional.
Tell us about the business
Type your GSTIN and the state fills itself. Accounts, GST rates, units, roles and numbering are seeded for you.
Add your people
Add each winder, operator and fitter with his shift, salary structure and any advance still outstanding.
Run the first payroll
Attendance and leave feed the run; payslips post to the books and staff see them on their phones.
FAQ
Questions, answered
Can I pay the second shift a shift allowance?
Yes. Add a shift allowance earning to the salary structure of the operators who work the 2 to 10 shift. It is pro-rated by paid days like the other lines, unless you mark it to be paid in full. Workers who move back to the day shift get the structure without it.
How do I handle advances before Pongal or Diwali?
Record each advance when you hand it over, with the amount and the monthly recovery. Several workers can have advances running at once, and each payroll run deducts the agreed instalment until the balance reaches zero. An advance can be cancelled only before any recovery.
Do all workers need a smartphone?
No. The supervisor can mark the whole floor from one screen on his phone or the office computer. Workers who do have a phone can check in themselves and see their attendance, leave balance and payslips through employee self-service.
Does SimpleERP calculate ESI for factory workers?
Not as a preset. Add ESI as a deduction component with the amount or percentage your CA gives you, and it appears on every payslip that carries it, posted to its own payable account. ESI challans and returns are filed outside SimpleERP.
Related
Keep reading
Manufacturing
BOMs with scrap and cost roll-up, work orders that move stock, and payroll for shop-floor staff.
Read moreAccounting for manufacturers
A double-entry ledger that a pump maker's bills, invoices, work orders and payroll write by themselves, with the month-end checks laid out.
Read moreProduction for small factories
Bills of materials for stators and pumps, work orders that check material and move stock on completion, and the real cost of every unit.
Read more
See how payroll works in SimpleERP for manufacturing
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