Basic steps for running payroll

First Time Use

• Configure Payroll – First Time Only
  • Human Resource -> Employee Master
    • All employee details are there in this screen
    • If there is any information which is missing, please update it.
    • This has not linked to payroll as such but it is to properly maintain your employee details.
  • Human Resource -> Payroll Master
    • This has the salary package for all your employees
    • Please go through them one by one and confirm if everything that’s is entered there is correct
  • Time and Attendance -> Leave Master
    • If you have any employees who have a allotted leave quota like Casual Leave etc. You would need to configure it here.
    • Click on Create New -> Select Employee and add leaves.
  • Human Resource -> Pay Component Setup
    • You would need to link the Pay Heads to the ledger accounts
    • Double click on a pay head -> Set the Account
    • When payroll runs, these are the accounts that are posted.
    • You can also add additional heads if needed.

Monthly Activity

• Running Payroll – Day To Day /Regular Activities
  • Step 1 – Attendance: Time and Attendance –> Employee Attendance 
    • Before running payroll, you need to mark absentees for employees
    • Chose Create New -> Select a Date -> Mark Employees as Absent -> Add
    • When you first mark attendance, it is by default Approved = N.
    • You can continue to edit this attendance while its Approved = N
    • Once you can confirm everything is ok, change Approved =Y and save, this will finalise the attendance
    • Repeat this process to mark attendance to all employees for all working days of the given month
  • Step 2 – Salary Adjustments: Human Resource -> Pay Adjustments
    • Use this screen to make any additional Allowances or Deductions for a given employee
    • You can use this in cases like
      • Extra Bonus payment
      • Overtime Payment
      • Deductions in case of any reason
      • Deductions when employee leaves half the month
      • Etc
    • Adjustments are again Approved=  N by default
    • You can change to Approved = Y once you can confirm its ok
    • All pending adjustments would be applied in the next Payroll
    • No Accounting Posting happens during adjustments. Postings happen only when the Payroll runs
  • Step 3 – Generate payroll: Human Resource -> Generate Payroll
    • This is where the actual Payroll generation happens
    • Select Month -> This will give start and end date
    • Select Account to pay from and click Add
    • This will generate all your Pay Slips (Can be seen in Human Resource -> Payroll Run Details)
    • All Payslip are again Approved = N
    • You can check and verify if the payments are correct
    • If there is a mistake then you can simple re run the payroll:
      • You can go and make the corrections like changing attendance, Adding Adjustment etc
      • Human Resource -> Generate Payroll -> Double Click on the generated payroll
      • Choose Force Rerun -> Yes and save
      • This will delete all the unapproved payslips and recreate them
    • Once you check all the employees and can confirm everything is ok then choose Approved = Y in Generate payroll and save
    • This will make all the accounting transactions and also complete the payroll process
  • Step 4 – Payslips
    • Payslips for all employees can be printed from Generate Payroll screen
    • Payslip for 1 employee can be printed from Payroll Run details screen.
  • Salary Advance: Human Resource -> Salary Advance
    • This screen can be used to give out salary advances to your employee. Salary Advances are like short term loans which are recovered form the salary.
    • You can set a limit to how much advance an employee can take using the Payroll Master screen
    • Once a Salary Advance is approved, this will be automatically deducted from the Payroll 
    • You can open an existing Salary Advance and see how much is recovered and also see if full recovery has been made.