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Processing Payroll

This guide walks you through the monthly process of calculating and paying employee salaries.

Prerequisite Checklist

Before starting a payroll run, ensure:

  1. The employee has an Active status.
  2. There is an Active Contract for the employee.
  3. All Leave Requests for the period have been approved or rejected.

Step 1: Create the Payroll Record

  1. Navigate to HR → Payrolls.
  2. Click New Payroll.
  3. Select the Employee.
  4. Set the Start Date and End Date (usually the full calendar month).
  5. The system will automatically fetch the base salary and allowances from the contract.

Step 2: Review and Adjust

Review the pre-calculated numbers. If adjustments are needed:

  • Overtime/Bonuses: Add these to the "Other Earnings" or "Allowances" section.
  • Unpaid Leave: Check the total days. The system will suggest a deduction amount based on the daily rate.
  • Click Save to keep the record in Draft mode for further review.

Step 3: Approve and Post

Once you are confident the numbers are correct:

  1. Click the Approve button.
  2. The status will change to Processed.
  3. Check the Journal Entry: In the "System Info" tab, you will find a link to the automatically created accounting entry.

Step 4: Pay the Employee

After approval, the salary is a liability. To record the actual payment:

  1. Open the processed payroll.
  2. Click Pay Employee.
  3. Select the Bank/Cash Account the money is coming from.
  4. Enter the Payment Date.
  5. Save the payment dialog. The payroll status will change to Paid.

Batch Processing (Optional)

If you have many employees, use the Batch Create Payroll feature to generate multiple draft records at once for a specific department or period.