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kezi Docs

Processing Your First Payroll

In this tutorial, we will process a monthly salary for an employee named Azad. This scenario includes a base salary and a deduction for two days of unpaid leave.

The Scenario

  • Employee: Azad
  • Monthly Base Salary: $1,000
  • Unpaid Leave: 2 Days
  • Period: January 2026

Phase 1: Creating the Draft

  1. Navigate to HR → Payrolls and click New Payroll.
  2. Select Azad from the employee list.
  3. Set the date range to January 1 to January 31, 2026.
  4. Notice how the Base Salary automatically fills as $1,000.

Phase 2: Calculating the Deduction

Azad was absent for 2 days without pay. We need to deduct this from his salary.

  1. Calculate the daily rate: $1,000 / 22 working days ≈ $45.45 per day.
  2. Calculate the total deduction: 2 days × $45.45 = $90.90.
  3. In the payroll form, find the General Deductions section.
  4. Enter $90.90 and add a note: "Unpaid Leave (2 days)".
  5. The Net Salary should now show $909.10.

Phase 3: Posting to Accounting

  1. Click Approve.
  2. The status changes to Processed.
  3. Behind the scenes, Kezi has created a journal entry:
    • Debit: Salary Expense ($1,000.00)
    • Credit: Accrued Salaries ($1,000.00) (Note: The deduction is reflected in the final net amount when the liability is cleared).

Phase 4: Completing the Payment

  1. Click Pay Employee.
  2. Select your Main Bank Account.
  3. Set the payment date to today.
  4. Click Record Payment.
  5. The status is now Paid. You have successfully completed the payroll cycle!

Next Steps