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Tally 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 / 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 production2. Ponnusamy - 75 mtr production3. Karthi – .5 days4. Suresh – 1.0 days

Date : 21-aug-2009

1. Sundar - 65 mtr production2. Ponnusamy - 60 mtr production3. Karthi – 1.0 days4. 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’ 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

Now you have created 4 Attendance vouchers.

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Now click Payroll button (CTRL + F4)

Click Payroll Auto fill (ALT + A)

From: 20-08-09To: 21-08-09Employee / Group: All ItemsPay Ledger: Cash (You can create Bank Ledger and select it)Enter 

Voila! Payroll is generated for all employees.Accept and Save

After generate payroll with attendance and production entries. Now print pay slip for individual employee or groupof 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 printedand other options. Ok.

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Tally Payroll Part II

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

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Similarly create another unit with Days as symbolname

Now select 'Attendance / Production Type' under Payroll InfoSelect Create

Name: Cloths producedUnder: PrimaryAttendance Type: ProductionUnit: Mtr 

Similarly Create another with

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

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We just created one pay head. Create another 

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

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Now go to ‘Salary Details’ under Payroll Info

Select CreateUnder 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 daySimilarly for suresh give 175 per day

Great! You are finished with masters. Lets go to Transactions in Tally Payroll Tutorial - Part III 

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Tally Payroll Tutorial - Part I

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’

In the Payroll Info menu there are Sub menus

• Pay Heads

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• 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 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.