1. Understanding Salary Setup
Payroll relies on accurate data from the HR department. Two components make up an employee's pay:
Employee Salary (Base)
This is the foundational baseline salary assigned to the employee.
Salary Adjustments
Any changes (like deductions, allowances, loans) are tracked as adjustments. The current payable salary is always Base Salary + Active Adjustments.
2. The Monthly Payroll Process
Step 1: Prepare the Monthly Salary Sheet
Create a new sheet for the month. The system will pull all active employees and their attendance records.
Step 2: Let the System Calculate
The system automatically computes the Basic Salary, Allowances, Deductions (Absence, Loans, GOSI), and final Net Salary.
Step 3: Finalize and Pay
Once reviewed, mark the salary sheet as Paid.
Accounting Impact: When the salary is marked as paid, the payroll accounting layer creates the payment Journal Entry automatically.