We have already gone through following basic configuration and master ledger creation for payroll in tally

Activation of payroll and employee creation

employee attendance in tally

creation of pay head

Now we will go a further and important step. today I will let you know how to create salary details for an employee and how to pass an automated payroll entry in tally.

From main menu of tally Press L or Payroll Info

Now select create to create salary structure of an employee for the first time.This is a one time setup requirement

You will find the list of all the employees as shown below. you have to create salary structure step by step for each every employee. Select name of employee for which you want to create salary details. If you are not familiar how to create an employee then please refer my article on creating an employee

After selecting an employee you will find below screen. the date may be the joining date of the employee if its the first time set up.

Now select the pay head from the pop up window as show above.

Basic salary is a fixed amount so you have to fill up the figure for basic salary. Before you go ahead please have a look on how to create pay heads in tally.

After basic salary just select provident fund and leave the amount field as blank and accept the screen by pressing CTRL+A. provident fund will be calculated automatically by the system at the time of payroll voucher entry.

At this moment I will only explain a simple module to understand. I will write about more complex salary module such as HRA, Conveyance, special allowances, employer’s contribution towards provident fund, professional tax deduction, ESI Gratuity etc.

Now let’s see how to make voucher entry to credit salary of an employee at the end of the month. Go to main menu of tally and press “Y” or select payroll Vouchers under Transactions.

now from the right side bar select Payroll Auto fill or press ALT+A

you will find following pop up.Select Salary

then select starting date and ending date of month i.e. 1st April to 30th April

Now select all employees or a particular employee for which you want to pass a salary voucher. here at the moment we have created only one employee so this option will have no effect. Select all and press enter

and its done! salary will be calculate  automatically and employee provident fund will also be deducted automatically from the gross salary payable to employee. so you have only to pay net salary to the employee as per ledger.

Tally’s payroll system is complete automated system and like any other payroll processing software, it also require one time basis set up. I have explained simple set up. In future, we will cover more topic like deduction of salary for absent days, arrears of salary, ESI, Employer’s contribution to PF fund as well as to EDLI and pf  administration exp. and salary disbursement etc.

Popularity: 100% [?]

We have already discussed  creating employee master and attendance master in tally.erp 9

Tally it is known as pay head.

Today, I will explain you how to create pay heads in tally

Pay heads are the type of salary or components of salary package

for i.e. basic salary, House Rent Allowance, special allowances, conveyance, allowances, provident fund, employer contribution, professional tax etc etc. are known as pay heads in tally.

So, if your salary package consist of several different components then you have to create all such different different pay heads. Here I will explain you how to create a basic salary pay head.

Remember , you don’t need to create a gross salary or net salary pay head!

Go to main menu of tally or gateway of tally and click the payroll info

Now select pay heads as shown below

Create a new pay head as per below

Input details as shown under the screen

Do let me know if you face any problem in this regard .

Popularity: 26% [?]

Few days, back I write about employee master creation in tally.erp 9 for payroll processing. However we have yet to go a long way and today,I will explain you how to create attendance  master in tally.erp 9

Creating Attendance master is very important without which you will not be able to keep track of days attended by an employee or man power absent data, leave data.So, using this facility will serve a complete payroll processing in tally.

Go to main menu of tally i.e. payment gateway and then select payroll info

you will see below screen. now select Attendance /production types

Now click to create (means create a new attendance type)

Enter the name of attendance you want to create for e.g. days attended, absent, sick leave, paid/privileges leave,casual leave ,leave without pay, weekly off , public holidays etc.

Here I will create an attendance master namely Days that is the days attended by an employee for which he /she is eligible to get salary/wages

Select primary as under

now you will see below screen and will be asked to choose appropriate option from the pop up .

Select Attendance /leave with pay

Attendance /Leave with pay : Select this option for all type of attendance for which you want to pay to salary to employees

let’s say an employee is eligible to get salary for days attended by him/her.

it is eligible for leave duly sanctioned by the management.

it is eligible for weekly off and all the national and notified public holidays

leave without pay  : Select this option for absent days, leave without authorization etc .Simply the attendance for which you don’t want to pay, you can select this option.

you may change this option at any time

Production and user defined calendar type , I will explain you some other time. mainly it is used if you want to pay overtime or a criteria based on production achieved by the staff.

The first two methods are widely used by units so at the moment it is enough to understand these two basic method

now accept the screen and its all done!

Don’t forget to come back for further reading.

Popularity: 19% [?]

Managing payroll in any organization is a tough job and statutory compliance make it more complex and difficult.

If the requirement was limited just to calculate the payroll for employees, and disbursement only then the job is bit easy in excel. Just type the name of employees, fill up the attendance details, salary details, make formulae and its all done.like generating pay slip, reporting of loans,advances, salary of a group of employees for a particular period of time etc etc

however the reality is different. The accounting / HR staff of a company has to do many other work and it is not possible to manage all such additional requirements in excel.

Again here, payroll software come to help you However Due to my own experience, I believe that a payroll which is an integral part of an accounting system is the best one because it prevents duplication of work, help in generating easy reporting and solve most of your requirements. Comparing the payroll processing software market rate, tally.erp 9 is much beneficiary as it is available with a complete erp at a throw away price

I am a die hard lover of tally’s payroll feature since the day, they offered this module free of cost to all its licensees user may be during the year, 2007-08 and till date, I am using this feature perfectly without any kind of error.

in my next post I will throw more important details of tally.erp 9 payroll feature. Today, I will start how to use payroll in tally.erp 9, I will start from the BASIC! that is how to create an employee master in tally payroll

First of all, you need to enable payroll in tally if the same is not enabled yet after creating a company

For this, press F11 from the main menu and select Accounting feature and

Set maintain payroll as yet as shown below

Now go to main menu and you will find Payroll Info under Master as shown below :

Hit the button

now click on employees

click to create

you will find following blank screen just fill up it with details of an employee

Remember the maxim details you fill up here is useful for reporting though for working purpose the details which is MUST, I HAVE filled up here without which payroll will not work

Accept the screen by CTRL+A

and its all done.

NEXT : HOW TO CREATE PAY HEAD so don’t forget to visit my site

Popularity: 30% [?]