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ERPNext HR & Payroll

What is Department?

Department
Departments in ERPNext organise employees into business units (Finance, HR, Engineering, Sales), used for leave approvals, payroll processing, and HR reporting.

Setting Up Departments

Go to HR → Department → New. Create a tree structure: Company → Operations → Production / Quality / Maintenance. Set a Department Head (Employee) for leave approval routing. Link departments to Cost Centres for expense allocation.

Department in HR Workflows

When an employee applies for leave, the approval request goes to the Department Head. Payroll Entry can be run per department. HR analytics reports filter by department to show headcount, attendance rate, and leave consumption per unit.

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