T ally Payroll Tutorial Part III 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 / Producti on 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.
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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.
Select ‘Pcs Rate Employee’ GroupSelect ‘Cloth Produced’ Production TypeFor Ponnnusamy Give 75 mtr and for sundar give 50 mtr and accept to save.
Again select Attendance Auto fillSelect ‘Daily Wage employee’ GroupSelect ‘Attendance’ as typeFor 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
In Tally Payroll Tutorial - Part I we see the masters vouchers for payroll. Now we will see how to create them with acase 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 Unit2. Ponnusamy - Rs. 2.75 per Unit
The following two are paid daily
1. Karthi – Rs. 150 per day2. 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 needto 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 TypesBefore creating production Types you need to create work unit
Go to -> Units (Work)Select CreateGive Symbol: Mtr (for cloths manufacturing, it depends on company)Format Name: Meter Number of Decimal places: 1Give Y to SaveThis is used to pay head for production based pay
Name: AttendanceUnder: PrimaryAttendance Type: Attendance / Leave with payPeriod Type: Days
Now go to pay heads
Select Create
Name: Wages by AttendancePage Head type: Earnings for Employees
Under: Direct ExpensesAppears in pay slip: YesCalculation Type: On AttendanceAttendance / Leave with pay: Select ‘Attendance’ (We just created before)Calculation Period: Days
Name: Wages by PCS RatePage Head type: Earnings for EmployeesUnder: Direct ExpensesAppears in pay slip: YesCalculation Type: On ProductionAttendance / Leave with pay: Select ‘Cloth Produced’ (We just created before)
Now you create employees and Employee Groups
Create two employee Groups1. Daily Wages Employees2. PCS rate Employees
Create employees:
Karthi and Suresh in ‘Daily Wages Employee’ GroupPonnusamy and Sundar in ‘Pcs Rate Employee’ Group
Tally 9 offers payroll for wages and salary to workers and employees. The payroll is not enabled by default whileyou 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’
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 Payrollvoucher entry. Creation of pay head is done by clicking Pay Heads and clicking Create. Give a name for pay headfor 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 ‘AdvanceDeductions’ under type Deductions from Employees, and for Production Wages select type ‘Earnings froEmployees’.
Calculation Type
There are four calculation Types:
• As Computed Value
• As User Defined Value
• Flat Rate
• On Attendance
• On Production
I don’t want to complicate with all these types. For now we will see how to create employees and enter their attendance / production details and take payroll.