This module is the storehouse of all Payment. Here you can set up rules of payment, Generate salary, and Bonus Calculation etc.
1) Create Payroll Item
Process: Go to Settings --> Payroll --> New Payroll Item
We have categorized Payroll Items into four types. 1.Income 2.Deduction 3.Addition and 4.Tax
Select Type of the payroll item, Type name of the Item. Then select which type of calculation is for this Payroll Item. Then write amount / percent figure into the amount/ percent field. If this payroll item needs to multiply with something like Overtime, Holiday Present or attendance etc then select is rate. Here you can see lots of option. Just select from it.
For Income & Addition type Items select Debit account as Salary expense or its sub account & credit account as Payroll account payable or its sub account. For Deduction type Items select debit account as payroll account payable and credit account as Salary expense.
Suppose an employee late in office 3days then his basic salary of 1 day should be deducted. If employee late 9 days then find out salary? That employee basic is $12 000 & working days of this month is 20. Calculation: General Way 1 day basic salary=12000 * (1/20) = 12000 * .05 = 600 late 9 days so: 600*3=1800. In our software: Select “percent” from “calculation”. Then enter the value 0.05. Then click on “is rate”. Select from multiply with “Late absence”.
2) List of Payroll Items
Go to Settings -->Payroll -->List of Payroll Item
List of payroll items displays the item which are using into the company pay scales with individual calculation process. You can edit / delete Payroll Item from here
3) Create a Pay scale
Go to --> Settings >> Payroll >> New Pay scale
Pay scale is a group of Payroll Items which is being used to calculate salary by applying. Each & Every Payroll Item is included in a single row. Write the name of the Pay scale & put the pay scale amount into the amount field. Select Payroll Item row which is not required the click on Minus (-) icon to remove & Save the Pay scale.
Note: You can set pay scale amount “0.00” initially. But this amount is configurable at the time of Employee creation. You can set a single Pay scale for multiple employees with deferent pay scale amount.
4) Create Payroll Schedule & Post Schedule
Process: Go to: Settings -->Payroll --> New Payroll Schedule
Payroll schedule is a process of calculating salaries according to its category. You have to assign a Schedule to an employee for his salary calculation. You can manage two types of schedule through Lines Pay. 1. Regular, 2. Hourly.
1. Daily: This frequency should applicable for the schedule which is being calculated Day to Day basis.
2. Monthly: This frequency should applicable for the schedule which is being calculated monthly. Note: Initially select schedule type as Regular for Salary calculation.
5) Salary Calculation
Go to: Payroll --> Active Payroll Schedule
In this section you first need to post a payment schedule. To post a schedule you need to click on Post Schedule button which is in right top corner. Then select schedule. Now you must set up salary calculation date range & payment date.
Now click on Attendance to calculate attendance data. Then click next to calculate salary. Now post journal.
The Very next Step is payment .First step you need to select payroll schedule, Date & Account set up. After that you need select employee whose salary are going to pay. Then create a payment voucher.
Finally you need to approve payment to complete salary calculation procedure.
6) Pay unscheduled payment (single employee)
Go to: Payment? Unscheduled Payment (single employee)
Steps 1 - Entry process: At first you should create a payroll item according to description field. Select the current date, employee name, payroll item, payable amount & accounting info.
Step 2 - Entry process: You can approve, reject, pending Tiffin bill from payment list.
7) Pay unscheduled payment (Multiple employee)
Go to payment? unscheduled payment (multiple employees)
Step 1 entry process: Here you can fill the payment create date, select effect on payroll item, select accounting information field carefully.
Figure 140: Unscheduled Payment –Payroll Item& Accounts Select\
Step 2 entry process: select the employee, who is eligible for mobile bill from employee list.
Step 3 entry process: Put the value into amount field. Here delete & save option is available.
Step 4 entry processes: You can approve, reject, pending mobile bill from payment list.