Payroll

The Payroll Module

The Payroll module manages employee salary processing. It integrates with HR (contracts, time off, attendance) and Accounting (journal entries for salary expenses).

Core Concepts

Menu Structure

• Payslips – Employee payslips, batch processing.
• Configuration – Salary rules, categories, contracts, contribution registers.
• Reporting – Payroll analysis.

Payroll Reporting

Payroll Analysis

Go to Payroll > Reporting > Payroll Analysis. Pivot with:

• Dimensions: Employee, Department, Contract, Salary Rule Category, Payslip Period.
• Measures: Gross Amount, Net Amount, Total Deductions, Employer Contributions.
• Filters: Date Range, Department, Employee.

Key Insights

• Total payroll cost per department.
• Monthly salary trends.
• Employer contribution breakdown by type.
• Tax deductions summary.

Payroll-to-Accounting Reconciliation

Each confirmed payslip batch posts a journal entry (or one entry per payslip, depending on configuration) debiting salary expense accounts and crediting the amounts owed to employees/tax authorities/benefit providers. After every run, reconcile the batch's total Net + Deductions + Employer Contributions against the posted journal entry total in Accounting — a mismatch usually means a salary rule's account mapping is wrong.

Statutory & Compliance Reports

Beyond the pivot analysis, export payslip data (gross, deductions, employer contributions by employee) in the format your tax/social-security authority requires — most jurisdictions need a periodic filing built from exactly this data, so keep salary rule codes consistent so the export mapping doesn't need to be redone each period.

Best Practices

• Run a test payroll for one employee before batch processing.
• Reconcile total payslip amounts with accounting entries every period, not just at year-end.
• Keep salary rule sequences logical – compute basic before allowances, allowances before statutory deductions.
• Back up salary rules before making changes, and test changes on a duplicated employee/contract first.
• Lock (mark Done) a payslip only after payment has actually been disbursed, not before.

Salary Rules

Go to Payroll > Configuration > Salary Rules.

Creating a Salary Rule

1. Click Create.
2. Category – Allowance, Deduction, Employer Contribution, Statutory.
3. Sequence – Evaluation order (lower = first).
4. Code – Unique identifier (e.g. BASIC, HRA, PF, TAX).
5. Name – Display name.
6. Condition Based On – Always True, Range (min/max salary), Python Expression.
7. Computation:

• Fixed Amount.
• Percentage of another rule (e.g. HRA = 50% of BASIC).
• Python Expression (max flexibility).

Salary Rule Categories

Go to Payroll > Configuration > Salary Rule Categories. Define GROSS, NET, and other grouping categories. The NET category is special – it represents the final payable amount.

Salary Structure

A salary structure is a collection of rules applied to a contract. Create rules and link them to contracts via the Salary Rules tab on the contract form. Set:

• Base wage (fixed).
• Applicable rules for this contract.
• Employer contribution registers.

Overtime & Public Holidays

Overtime hours (from Attendance) can feed a dedicated salary rule that computes extra pay at a configured multiplier (e.g. 1.5× normal rate). Public holidays are maintained as a calendar (Employees > Configuration > Public Holidays) so a payslip period automatically excludes them from "days worked" instead of an accountant manually adjusting each one.