Implementation Kit
Implementation Flow
Masters
Pay Structure
Opening Info
Attendance
Generate Payslip
Payslip
(Print & Reports)
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Index
Payroll Pro
1.Masters:__________________________________________________3
A.Payroll setup ............................................................................. ..........4
B.Attendance........................................................ ...................................6
II.Shifts...............................................................................................................6
C.Leaves .......................................................... .......................................7
D.Salary structure..................................................................... ...............8
II.Pay Components*............................................................................................11
III.Pay Structure *: ............................................................................................12
E.Employees....................................................................................... ....13
F.Loans, Advances & Gratuity........................................................ .........14
I.Loan Types : ...............................................................................................14
II.Advance Types: .............................................................................................14
III.Visa Types.....................................................................................................14
IV.Gratuity Types.................................................................................................15
G.Company Properties........................................................................ ....15
I.Provident Fund (PF): ........................................................................................15
II.Employee Provident Fund (ESI):........................................................................16
III.Professional Tax (P.Tax): .................................................................................17
2.Transactions _____________________________________________18
A.Employee Opening Info ........................................................... ...........18
I.Employee Opening Info .....................................................................................18
II.Employee Opening Info – Bulk...........................................................................19
B.Leaves ........................................................... ....................................19
I.Revise Emp Leave Entitlements..........................................................................19
II.Leave Applications...........................................................................................19
III.Process Leave Applications...............................................................................20
IV.Detailed Leaves...............................................................................................20
V.Leave Encashment............................................................................................20
C.Attendance & Leaves ................................................................... .......20
I.Daily Attendance...............................................................................................20
II.Periodic – Attendance & Leaves.........................................................................21
III.Import Attendance..........................................................................................21
D.Generate Payslip.......................................................................... .......21
I.Generate Payslip...............................................................................................22
II.Generate Bulk Payslip.......................................................................................22
III.Supplementary Payslip....................................................................................22
E.Loans........................................................................ ..........................22
I.Opening Loans..................................................................................................22
II.Loans Granted.................................................................................................22
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III.Loans to Deduct.............................................................................................22
F.Advances......................................................................................... ....22
I.Opening Advances............................................................................................22
II.Advance To Deduct..........................................................................................22
G.Adhoc Payments...................................................... ...........................22
I.Adhoc – Payments............................................................................................22
H.Revisions ................................................................... ........................22
I.Salary Revisions...............................................................................................22
II.Employment Revisions......................................................................................23
III.Assign Holiday List..........................................................................................23
I.End of Service ............................................................................... ......23
I.Resignation Info................................................................................................23
II.Relieving Info..................................................................................................23
J.Gratuity .......................................................................... ....................23
I.Gratuity...........................................................................................................23
Income Tax
Payroll Pro
1. Masters:
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Define Employee Details. The first step as shown in the flow chart is to create masters.
Masters marked * are minimum required to generate Payslip. Create masters in the order
shown below.
A. Payroll setup
I. Pay Location Types: Create Locations types like Branches, Factories, etc
II. Pay Locations : Can be Country, States or Cities in which the company
operates.
III. Periodicities : Are the periods for which salary would be computed.
Ex: Day , Week, Month, etc. In the Periodicities master, if the periodicity
defined is a month the enter Base UOM as Days and Base Qty as 30. Then during
payroll generation irrespective of actual no. of days the month. It will consider 30
as number of days in a month for calculating salary per day. For calculations such
as loss of pay, etc.
Figure 1 - Periodicities
IV. Pay Periods : Are the payroll periodicities for which salary needs to be
computed. Ex: Mar 07, Apr07, Dec08, etc. The Payroll Period can be defined in
figure 2.
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Figure 2 – Payroll Periods
V. Payroll Years: Is the year for which payroll data is required to be maintained.
Ex: Apr 09 – Mar 10, 2009-2010.etc.After creating “Payroll year” master click on its
properties and select “Applicable Periods” tab. In this tab select the “Pay Periods”
that are to assigned to that payroll year as shown in figure 3.
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Please note after creating “Payroll Years” master .Open “Periodicities”
properties and under “Assign Calendar years” tab select the “Payroll Year” to
Holiday Listsperiodicity
which the : belongs.
VI. Holiday Lists: Create a master for holiday’s year wise that you wish to assign to
an employees. After the master is created open its properties and enter Weekly
Offs, Public Holidays and Optional Holidays.
B. Attendance
II. Shifts
If your company has shifts create shift and define timings, Overtime, Holiday Overtime.
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Figure 5 – Shift Properties
C. Leaves
I. Leave Type: Create types like Earned Leaves, Casual Leaves, sick Leaves, Loss of Pay,
etc. After creating leave types define properties like Paid or Unpaid, En-cashable and
Carry forward.
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Figure 6 – Leave Types Properties
II. Leave Entitlements: Multiple Leave Entitlement masters can be created to facilitate
assignment of different leave structures to employees belonging to different
departments of locations. In the properties select the leave type and UOM. Then click
on “Assign Leaves” tab to assign period-wise leaves.
D. Salary structure
This is the most critical part of Payroll configuration. Under this the Pay component Types,
Computation methods for each Pay Component is defined and Pay Components are assigned
to Pay structure. Advantage of having a Pay structure is that it can be assigned to all the
employees having same remuneration structure. This will do away with the need to assign
Pay Components individually to each and every employee.
I. Pay Component Types*: Create master of all the salary components that would be
applicable to the company. Ex: Basic, Conveyance, ESI, HRA, PF, Professional Tax,
TDS, Etc.
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Figure 8 – “Pay Component Types” Properties
Component Type: Components Types are of two types “Payroll Earnings” and “Payroll
Deductions”. Payroll Earning are the components which are added to the salary and Payroll
Deductions are components which are subtracted from Salary. Ex: HRA is a earning since its
added to the salary and Professional tax is a deduction since its value is subtracted from the
salary.
Time Dependant: Enable this check box for components which change in proportion to
attendance. Ex: The basic salary of a employee is Rs.3,000/- and he has attendance of only
20 days in a 30 day month .The basic salary would be computed as Rs.2,000/-.
Sequence: It’s the order in which the salary components should be computed. Ex: In the
Figure 9, the Salary Component Types list is in alphabetical order. But the sequence in which
the salary should be computed is first Basic, second HRA then Conveyance. Then sequence
for Basic should be 1, for HRA 2 and for Conveyance 3.
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Figure 9 – Salary Component Types
Monetary: Whether the salary component will be paid in monetary terms or otherwise.
Finance Posting: If the salaries are required to be posted to Finance Module. In “Finance
Posting’ tab. Select Debit and Credit accounts. Ex: Dr. Salaries & Wages Account (Expenses
A/c) and Cr. Salaries Payable Account (Current Liabilities). If it’s desired that individual
Employees A/c should be debited “Employee Wise Ledger” check box should be checked.
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II. Pay Components*
Pay components are used to define calculation method. After creating “Pay Components”
.Click properties, then on Edit button to configure Pay Components.
Absolute Amount: Select this option if the amount is to be directly entered i.e. no
formula or slabs are required. Example: Basic Salary as shown below in figure 11
below.
Figure 11
Computed Amount: Select this types of calculation method if, the Pay Component is
based on formula. Example : See below the the formula to calculate PF.
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Figure 12
Conditional Amount: This type of calculation is required if the value of the Pay Component
is based on slabs. Example: Refer the calculation method for Professional Tax, Figure 13.
Figure 13
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Figure 14
E. Employees
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Figure 15
I. Loan Types :
Create loans like Educational Loans, Personal Loans, etc.
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IV. Gratuity Types
Gratuity is the amount paid to employee for working continuously in the organization. If in
an organization more than one type of gratuity is required. Create as many masters
required for assign different slabs and rates. See figure 16.
Figure 16
G. Company Properties
In this tab enter the PF limits as per Employees’ Provident Funds and Miscellaneous
Provisions Act, 1952. .The values entered below (Figure 17) are as per the above Act
currently in force.
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Figure 17
In this tab enter the ESI limits as per Employees' State Insurance Act, 1948. The values
entered below (Figure 18 ) are as per the above Act currently in force.
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Figure 18
In the “P.Tax” tab. Select the “Professional Tax” Salary component. Figure 19
Figure 19
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2. Transactions
Figure 20
After entering details in “Employment” tab .Go to “Pay Component” tab and enter the
amount for components for which the computation method was defined as “Absolute
Amount”. As shown in the example above after the value of basic amount is entered HRA,
PF & PT values are automatically calculated (i.e. Computed Amount and Conditional Salary
Components are calculated.)
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II. Employee Opening Info – Bulk
This is used to enter opening info for multiple employees. Select a Payroll Location and
select all employees who should be under that location. After selecting employee name
other details like, Date of joining, WEF, etc. Click on “Pay Components” and “Opening
Leaves” to enter details for them.
Figure 21
B. Leaves
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III. Process Leave Applications
Used for approving leaves request made thru “Leave Application” transaction.
V. Leave Encashment
If you want to add leave encashment value to employees salary. Select the month,
employee, Leave Type , Pay Component & days.
Ensure that attendance for the “Same Employee” and “same Period” is not
entered in both “Daily Attendance” and “Periodic – Attendance & Leaves”.
I. Daily Attendance
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After selecting date, Location and Shift. All the employees belonging to that that Location
and Shift will be displayed in “Employees” tab. Enable the check box under column “Is
Present” for employee present on that date. After that, click on “TimeSheet” button. It will
open window called ‘TimeSheet” as shown in figure 22. In this enter multiple “In Time” and
“Out Time”, if required. For each row duration will be computed and the total of such
duration will be posted to “Worked Hours” column in “Employee” tab.
D. Generate Payslip
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I. Generate Payslip
E. Loans
I. Opening Loans
F. Advances
I. Opening Advances
G. Adhoc Payments
Menu path: \Transactions\Payroll\Others
I. Adhoc – Payments
H. Revisions
Menu path: \Transactions\Payroll\Employee
I. Salary Revisions
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II. Employment Revisions
I. End of Service
Menu path: \Transactions\Payroll\Employee
I. Resignation Info
J. Gratuity
I. Gratuity
Income Tax
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