Tally Payroll Tutorial - Part I
The four steps include:
1. Creating Pay heads
2. Creating Employee Master
3. Creating Salary details
4. Process payroll and generating Pay slips.
Tally 9 offers payroll for wages and salary to workers and employees. The
payroll is not enabled by default while you create the company. To enable
it press F11 to open ‘Accounting Features’ screen.
Under Cost/Profit Centers Management, you will find Maintain Payroll.
Give yes and press ESC to exit.
Now, in Masters Menu there is a new sub-menu 'Payroll Info', and in
Transactions Menu ‘Payroll Vouchers’
•
Pay Heads
•
Employee Groups
•
Employees
•
Salary Details
•Units (Work)
•
Attendance / Production Types
•
Voucher Types.
You need to create employees for the ‘Salary Details’ menu to be enabled.
Pay Heads
First you need to create the pay heads. Pay head creation is essential as it
is used in payroll ledger and Payroll voucher entry. Creation of pay head is
done by clicking Pay Heads and clicking Create. Give a name for pay head
for example, ‘Production Wages’
In the Pay Heads Type below select appropriate Type. The following are
available
•
Deductions from Employees (For deductions create this pay head)
•Earnings for Employees (For wages / salary create this pay head)
•Employees' Statutory Deductions (For ESI and other create this)
•Employer's Statutory Contributions
•
Gratuity
•
Loans and Advances (For Advance and Loan payments create this)
•
Reimbursements to Employees
It is obvious that for different payments create different pay heads. For
deductions from advance create ‘Advance Deductions’ under type
Deductions from Employees, and for Production Wages select type
‘Earnings fro Employees’.
Calculation Type
There are four calculation Types:
•
As Computed Value
•
As User Defined Value
•
Flat Rate
•
On Attendance
In Tally Payroll Tutorial - Part I we see the masters vouchers for payroll. Now we will see how to create them with a case study example:
Consider a manufacturing company the produces cloths (for example, powerlooms producing Gad cloths).
There are two kinds of employee on the company’s payroll 1. PCS Rate wages (based on the production done) 2. Daily wages (Fixed flat rate)
For example the following two employees works on PCS Rate 1. Sundar - Rs. 2.50 per Unit
2. Ponnusamy - Rs. 2.75 per Unit The following two are paid daily 1. Karthi – Rs. 150 per day 2. Suresh – Rs. 175 per day
Now you have to create payroll for them using Tally. How can you do? It is very easy. Here are the steps you need to follow:
Firs you need to create pay heads in Payroll master. We need two pay heads:
1. Wages Daily (For Daily Flat wage employees) 2. Wages PCS Rate (For PCS Rate employees)
Before creating Pay Head you need to create Attendance / Production Types Before creating production Types you need to create work unit
Go to -> Units (Work) Select Create
Give Symbol: Mtr (for cloths manufacturing, it depends on company) Format Name: Meter
Number of Decimal places: 1 Give Y to Save
Similarly create another unit with Days as symbol name
Now select 'Attendance / Production Type' under Payroll Info Select Create
Name: Cloths produced Under: Primary
Attendance Type: Production Unit: Mtr
Similarly Create another with Name: Attendance
Attendance Type: Attendance / Leave with pay Period Type: Days
Now go to pay heads
Select Create
Name: Wages by Attendance
Page Head type: Earnings for Employees Under: Direct Expenses
Appears in pay slip: Yes
Calculation Type: On Attendance
Attendance / Leave with pay: Select ‘Attendance’ (We just created before) Calculation Period: Days
We just created one pay head. Create another Name: Wages by PCS Rate
Page Head type: Earnings for Employees Under: Direct Expenses
Appears in pay slip: Yes
Calculation Type: On Production
Attendance / Leave with pay: Select ‘Cloth Produced’ (We just created before) Now you create employees and Employee Groups
Create two employee Groups 1. Daily Wages Employees 2. PCS rate Employees Create employees:
Karthi and Suresh in ‘Daily Wages Employee’ Group Ponnusamy and Sundar in ‘Pcs Rate Employee’ Group Now go to ‘Salary Details’ under Payroll Info
Select Create
Under Employee / Group select ‘Sundar’
Under pay head select ‘Wages by Pcs Rate’ and under rate give 2.50, under per give mtr Accept and give yes
Similarly for ponnusamy give 2.75
Now select karthi and select ‘Wages by attendance’ for pay head and give 150 per day Similarly for suresh give 175 per day
Great! You are finished with masters. Lets go to Transactions in Tally Payroll
In Tally Payroll Tutorial Part II you created required masters to create payroll vouchers. You were introduced to Payroll masters, how to create pay heads, Employees, Salary Details, Units,
Attendance / Production Types. Now it is time to generate your first payroll. We will continue
the case study
Given are the attendance / production details for the 4 employees for two different dates. Date : 20-aug-2009 1. Sundar - 50 mtr production 2. Ponnusamy - 75 mtr production 3. Karthi – .5 days 4. Suresh – 1.0 days Date : 21-aug-2009 1. Sundar - 65 mtr production 2. Ponnusamy - 60 mtr production 3. Karthi – 1.0 days 4. Suresh – 1.0 days Got Payroll vouchers Select Attendance button
Press F2 to change current Date to 20-aug-2009 Select Attendance Auto fill (CTRL + A)
Select ‘Pcs Rate Employee’ Group Select ‘Cloth Produced’ Production Type
For Ponnnusamy Give 75 mtr and for sundar give 50 mtr and accept to save.
Again select Attendance Auto fill Select ‘Daily Wage employee’ Group Select ‘Attendance’ as type
For Karthi give 0.5 days and Suresh Give 1 day and accept to save
Similarly change date to 21-aug-2009 and give above values for that date Now you have created 4 Attendance vouchers.
Now click Payroll button (CTRL + F4) Click Payroll Auto fill (ALT + A) From: 20-08-09
To: 21-08-09
Employee / Group: All Items
Pay Ledger: Cash (You can create Bank Ledger and select it) Enter
Voila! Payroll is generated for all employees. Accept and Save
Take a cup of coffee and relax!
We have learnt to create Basic Payroll. You can create any number of employees, Group them under any department / function like Accounts, Sales, Marketing, Security, Logistics, Stores anything you like. There are advanced concepts in Tally payroll like Gratuity, Advance, Bonus,
and Reimbursement. First master the basic concepts of Tally 9 payroll and come to advanced
topics
Tally Payroll Tutorial - Part IV
Tally Payroll Tutorial - Part III explained how to generate payroll with attendance and production entries. Now you will see how to print pay slip for individual employee or group of employees. To print pay slips go to Multi Account Printing -> Multi Payslip printing.
Select No for the ‘Yes’ or ‘No’ prompt.
You can give from, to dates, which employee or group of employees to be printed and other options. Ok. This is the last part of Tally Payroll Tutorial. I have covered the basics