Payroll Entry
Payroll encompasses the aggregate of all remuneration that a business is obligated to disburse to its employees within a specified timeframe or on a designated date.
Within BizCentric HR, the Payroll Entry feature facilitates the mass processing of employee payroll. In essence, it enables the simultaneous generation of salary slips for all employees. This bulk processing can be executed universally across the company or can be tailored according to specific categories, including Branch, Department, or Designation.
To access Payroll Entry, go to:
Home > Human Resources > Payroll > Payroll Entry
1. How to create a Payroll Entry
- Go to Payroll Entry list, click on New.
- Select the Payroll Frequency.
- Select Branch, Designation and Department to filter out employees (optional).
- Select Project (optional) if you want to run the payroll against a project.
- Select ‘Validate Attendance’ and ‘Salary Slip Based on Timesheet’ checkboxes in case you want to deduct the salary based on attendance and if you want to also consider the timesheets of the employees respectively.
- Select the Payment Account to make the Bank Entry.
- Save.
Once the information is saved, click on the Get Employees button to get a list of Employees for which the Salary Slips will be created based on the selected criteria.
Once the list of Employees is fetched, click on the Create Salary Slips button to generate Salary Slips.
Note: If the Salary Slips are already created, the system will not create any more Salary Slips. You can also just save the form as Draft and create the Salary Slips later.
2. Features
2.1 Salary Accrual
After reviewing the Salary Slips, you can proceed to submit them collectively by clicking the “Submit Salary Slip” button.
This action will also entail the booking of the default Payroll Payable account against corresponding Expense Heads (as configured in Salary Components) to register the accrual of salary to employees.
Cost Center:
You have the option to designate a Cost Center in the Payroll Entry for posting expenses.
If you wish to allocate expenses across multiple cost centers based on Employee/Department, this can be achieved by configuring the Payroll Cost Center in the Employee/Department master.
Additionally, multiple cost centers can be assigned to a single Employee. This can be accomplished through the Salary Structure Assignment document.
Priority is given to the Cost Center assigned in the Salary Structure Assignment, followed by the Employee and Department master, respectively. The Cost Center selected in the Payroll Entry holds the lowest priority.
Note: Submitting Salary Slips one by one manually will not create the Journal Entry to record salary accrual.
2.2 Salary Payment
The final step involves recording the Salary Payment.
Handling salaries within businesses typically entails a high level of confidentiality. In most scenarios, companies issue a consolidated payment to the bank, amalgamating all salaries, which are then distributed by the bank to each employee’s salary account.
This approach ensures that there is only one payment entry in the company’s financial records, safeguarding individual salary details from unauthorized access by anyone with access to the company’s accounts.
The salary payment entry constitutes a Journal Entry that debits the total of the Earnings-type salary components and credits the total of Deductions-type salary components for all employees to the default account established at the Salary Component level for each component.
To generate the salary payment voucher from the Payroll Entry, click on the “Make Bank Entry” button.
The Payroll Entry will direct you to a Journal Entry interface with relevant filters to review the draft Journal Vouchers created. You will need to specify the reference number and date for the transactions before submitting the Journal Entry.
Note: For Salary Components which are Flexible Benefits and has Create Separate Payment Entry Against Benefit Claim checked, BizCentric HR will book separate draft Journal Entries.