Exit to final settlement
Notice, documented terminal amounts, clearance, final payroll approval and separate payment authorisation before closure.
7 stages · 5 approvals
Roles and responsibilities
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Step 1Initiate
Exit NumberEmployeeExit TypeInitiated OnTermination
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Step 2Notice and terminal amounts
Request NumberEmployeeLeave PolicyFrom Date
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Step 3Clearance
Exit NumberEmployeeExit TypeInitiated OnTermination
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Step 4Settlement calculation
Input NumberPay RunEmployeeComponent
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Step 5Run approval
Pay Run NumberLegal EntityRun TypePeriod EndOff Cycle
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Step 6Payment authorisation
Employee NumberFull NameDepartmentPosition
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Step 7Post and close
Enrolment NumberEmployeeBenefit PlanCoverage LevelEmployee Spouse
Process steps
Follow the process from start to finish. Select a step to see who acts and what changes.
Initiate
Employee submits their own resignation or HR Manager opens another permitted exit type. Exits records the reason, notice period and proposed last working day. Employees moves to OnNotice; the request alone does not authorise a terminal amount.
Approval required
Notice and terminal amounts
HR Manager confirms the last working day and documents any agreed notice waiver, recovery or pay in lieu. Severance and end-of-service amounts carry the rule or agreement used. Exits.ApprovedBy and ApprovedOn record this decision before payroll reads the amounts. Leave extending beyond the last working day is returned for correction.
Approval required
Clearance
HR Manager confirms the checklist supplied by Line Manager, Admin and Finance Controller. Assets, access changes and outstanding balances are recorded in ClearanceEvidence. ClearanceComplete means the checks are complete; it does not assert that a balance scheduled for payroll recovery was already paid.
Settlement calculation
Payroll Officer creates a PayRuns record with RunType FinalSettlement. Exits.Status becomes FinalSettlement. The calculation includes applicable pro-rated pay, approved terminal components, encashment and permitted deductions. Outstanding loans and garnishments are handled under the configured priorities and protected amounts. A shortfall is reported for review instead of silently forcing negative pay.
Approval required
Run approval
Finance Controller approves the settlement run after Payroll Officer submits its current calculation and supporting exit record. A correction returns the run to Draft with a reason and requires recalculation. HR approval of terminal amounts does not replace payroll approval.
Approval required
Payment authorisation
A different authorised Finance Controller approves the batch. A bank transfer requires the current verified account request and matching payment snapshot. A bank return leaves the amount outstanding and requires re-verification before a linked replacement payment.
Approval required
Post and close
Finance Controller posts and reconciles the journal, payment and filings. HR Manager completes Exits and updates Employees to Exited when PaymentStatus is Paid and the journal is Posted. Retention and former-employee access follow the agreed policy. Benefit coverage ends on its recorded effective date. The former employee retains restricted access to released payslips and published tax certificates.
Approvals and controls
5 approvals required in this process
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Notice and terminal amounts
HR Manager signs · clearance waits
Exits, LeaveRequests -
Clearance
HR Manager signs · settlement calculation waits
Exits, LoansAndAdvances -
Run approval
Finance Controller signs · payment authorisation waits
PayRuns, Exits -
Payment authorisation
Finance Controller signs · post and close waits
PaymentBatches, Payments, BankAccountChangeRequests, Employees -
Post and close
Finance Controller signs · closes the process
PayrollJournals, StatutoryFilings, BenefitEnrolments, Employees, Exits, Positions - Payroll requires recorded terminal approvalClearance before the settlement calculation.
- Encashment uses the balance rowRecords the encashed days, preventing another run from paying them again.
- The requester cannot approve their own bank changeAnd the run approver cannot authorise its payment batch.
- The register separates paid, released and held amountsA returned payment does not become settled merely because a file was sent.
- Deduction priorityEntitlement and tax treatment are verified for the entity during configuration; the website makes no universal statutory promise.
- Closure preserves the employment historyThe restricted document access needed by the former employee.
Records and postings
| Stage | Records | Effect |
|---|---|---|
| 1 Initiate | ExitsEmployees | notice recorded |
| 2 Notice and terminal amounts | ExitsLeaveRequests | terminal basis approved |
| 3 Clearance | ExitsLoansAndAdvances | evidence checked; settlement unblocked |
| 4 Settlement calculation | PayRunsPayrollInputsPayslipsPayslipLinesLeaveBalances | final pay and outstanding obligations calculated |
| 5 Run approval | PayRunsExits | run approved separately from terminal amounts |
| 6 Payment authorisation | PaymentBatchesPaymentsBankAccountChangeRequestsEmployees | batch authorised |
| 7 Post and close | PayrollJournalsStatutoryFilingsBenefitEnrolmentsEmployeesExitsPositions | paid/held amounts reconciled; closure recorded |
Process reports
All reportsPayroll Register
Every payslip in a run with days paid, gross, each deduction, employer contributions and net; the document the approver signs off.
Payment Reconciliation
Net pay per payslip against confirmed payments counted once, linking returned and reissued attempts and listing the remaining released and held obligations.
Benefits Enrolment
Enrolment by plan and coverage level with employee premiums and employer contributions per period.
Payroll Summary by Component
Totals per component by entity and run, employee and employer sides, the sheet the register is reconciled to before the run is submitted.
Payroll Variance
This run against the previous run per employee, flagging changes in gross or net above the entity's threshold with the input or revision that caused them.
Changes Since Last Run
Joiners, leavers, compensation revisions, assignment changes, bank and tax-detail changes and new garnishments in the period, with who approved each.
Statutory Liability Summary
Withholding, social insurance and pension amounts by entity, jurisdiction and period, with what has been filed, paid and is still owed.
Payroll Cost by Cost Centre
Employer cost by entity, cost centre, component and month, reconciled to the posted payroll journal.
Headcount and Attrition
Headcount by entity, department and employment type from the assignments effective in the month, with joiners and leavers and the reasons for leaving.
Leave Liability
Accrued unused leave per employee valued at the current daily rate, for the balance sheet accrual.
Run by an agent
Agent support
The configured workflows must prevent agents from approving offers or bank-account changes, approving payroll, authorising payments, posting journals, approving year-end statements or locking periods. The assigned person records each decision. Rehearsal must verify identity, masking, the audit record and refusal of unauthorised actions before an agent may write.
# Example after configuration
$ curl -fsSL https://www.erp.ai/skill.md | paste into your agent
› exit to final settlement · initiate on Exits, Employees
✓ Employee submits their own resignation or HR Manager opens another permitted exit type.
› exit to final settlement · notice and terminal amounts on Exits, LeaveRequests
⏸ approval · waiting for the hr manager
# 5 more stages after approval: clearance, settlement calculation, run approval, payment authorisation, post and close
Other processes
5 morePay run
Inputs, calculation, payroll approval, payment authorisation and posting, with held amounts reconciled separately.
8 stages · 3 approvals
Hire to pay
From offer approval to the first payslip, with verified bank details, salary approval and separate payment authorisation.
8 stages · 7 approvals
Leave request to payroll
How a leave request becomes a balance movement, an attendance status and, where the leave is unpaid, a loss-of-pay day in the run, with the manager's gate in the middle.
6 stages · 1 approval
Roster to pay
For hourly and shift staff: publish the roster, capture the punches, correct the gaps, approve the timesheet, lock at cutoff and pay hours, overtime and shift premiums.
6 stages · 2 approvals
Year-end close and filing
Reconciling the year's runs to the returns filed, correcting what is wrong, producing the year-end statement and employee tax certificates, filing, resetting the year-to-date counters and locking the tax year.
6 stages · 2 approvals