Payroll Module Documentation

Chapter 1: Getting start with Payroll module

1.1 Payroll Quick Start

Overview

The Quick Start Guide provides the minimum setup required before using the Payroll Module.

Prerequisites

Before starting, ensure:

Navigation

Payroll

Setup Workflow

Setup HR Profile
        │
        ▼
Setup Payroll Components
        │
        ▼
Configure Statutory Data
        │
        ▼
Register Employee
        │
        ▼
Setup Account Posting
        │
        ▼
Assign Leave & Claim Approver
        │
        ▼
Ready to Process Payroll

Quick Start Checklist

Step Description
1 Setup HR Profile
2 Setup Payroll Components
3 Setup Statutory Data
4 Register Employee
5 Setup Account Posting
6 Setup Leave & Claim Approver

Expected Result

After completing all setup steps, the Payroll Module is ready for payroll processing.

1.2 Setup Compensation Data

Purpose

Configure government-required payroll deductions.

Example: Compensation Management

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This is default record.

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Workflow

Payroll Module
    ↓
Payroll Component
    ↓
Compensation
    ↓
+ Create
    ↓
Save


1.3 Setup Payroll Components

Purpose

Payroll Components define how employee salaries are calculated.

1. Position

Purpose

The Position module manages the list of employee job positions within the organization.

Functions

Examples

2. Department

Purpose

The Department module manages the organizational departments used throughout the payroll system.

Functions

Examples

3. Compensation

Purpose

The Compensation module defines employee salary structures and recurring earnings.

Functions

Examples

4. Allowance

Purpose

The Allowance module manages additional payments provided to employees beyond their basic salary.

Functions

Common Allowances

5. Deduction

Purpose

The Deduction module manages salary deductions applied during payroll calculation.

Functions

Common Deductions

6. Overtime

Purpose

The Overtime module manages overtime payment settings for employees.

Functions

Examples

7. Commission

Purpose

The Commission module manages commission-based earnings for eligible employees.

Functions

Examples

8. Claim

Purpose

The Claim module manages employee reimbursement categories used in the Claim Approval process.

Functions

Examples

9. Leave Setup

Purpose

The Leave Setup module configures company leave policies and entitlement rules.

Functions

Examples

10. Leave Type

Purpose

The Leave Type module defines the different categories of leave available to employees.

Functions

Common Leave Types

11. Account Posting

Purpose

The Account Posting module maps payroll components to the company's accounting ledger. It ensures payroll transactions are posted to the correct General Ledger (GL) accounts during payroll processing.

Functions

Common Posting Accounts

Payroll Component

Example GL Account

Basic Salary

Salary Expense

Allowance

Allowance Expense

Overtime

Overtime Expense

Commission

Commission Expense

EPF

EPF Payable

SOCSO

SOCSO Payable

PCB

Tax Payable

Bonus

Bonus Expense

1.4 Setup HR Profile (Core Module)

Purpose

Before payroll can be used, every employee must have an HR Profile.

Field Required
Emp Code Index / Prefix Yes
HR Email Yes
Employer No. (E) Yes
LHDN Branch Yes
KWSP No. Yes
SOCSO No. Yes
Officer Name Yes
Officer Position Yes
Officer Phone Number Yes

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Workflow

Core
   ↓
Branch / Company
   ↓
Edit record company
   ↓
Payroll
   ↓
Fill in HR information


1.5 Register Employee

Purpose

Register employees into the payroll system.

Required Information

Field Required
Employee Name Yes
Birthday Yes
Retirement date Yes

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Users can configure the employee's payroll information

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Workflow

Payroll
   ↓
Employee
   ↓
Create
Expected Result

The payroll component is available for employee salary configuration.


1.6 Setup Account Posting

Purpose

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Posting Workflow

Payroll
      ↓
Payroll Component
      ↓
Account Posting

1.7 Setup Superior for Approval Request

Purpose

Assign approvers for leave.

Approval Flow

Core
      ↓
Approval Request

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Chapter 2: Payroll Component

Purpose

The Payroll Component module is used to configure the master data and payroll elements required for payroll calculation. It allows administrators to define organizational structures, salary components, leave settings, and accounting mappings before payroll processing.

1. Position

Purpose

The Position module manages the list of employee job positions within the organization. Create new position by code and description.

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Create New Position:

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2. Department

Purpose

The Department module manages the organizational departments used throughout the payroll system. Create new department by code, department name and select employees. The head of department can add employees under the department.

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Create New Department:

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3. Compensation

Purpose

The Compensation module defines employee salary structures and recurring earnings. Create new compensation by code, description, exclusive for company, contributions, general information, allowances, deductions, overtime, and more contributions. Users can define salary information, statutory contribution settings, allowances, deductions, and overtime rules. The created compensation can then be assigned to employees and used during payroll processing.

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Create New Compensation:

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4. Allowance

Purpose

The Allowance module manages additional payments provided to employees beyond their basic salary. Create new allowance by code, description, rate, tax exempted code and contributions. Allowances are additional payments provided to employees on top of their basic salary, such as meal allowance, transport allowance, housing allowance, or other benefits. The created allowance can be assigned to employees and included during payroll processing to calculate the employee's total compensation.image.png

Create New Allowance:

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5. Deduction

Purpose

The Deduction module manages salary deductions applied during payroll calculation. Create new deduction by code, description, rate and contributions. Deduction items are amounts deducted from an employee's salary during payroll processing, such as statutory contributions, loan repayments, or other employee-related deductions.

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Create New Deduction:

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6. Overtime

Purpose

The Overtime module manages overtime payment settings for employees. Create new overtime by code, description, rate, unit and contributions. Each overtime record defines the overtime code, description, calculation rate, unit, and statutory contribution settings. Overtime setup is required before processing overtime payments during payroll calculation.

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Create New Overtime:

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7. Commission

Purpose

The Commission module manages commission-based earnings for eligible employees.Create new commission by code, description and contributions. It allows the company to define commission types and determine whether statutory contributions such as EPF, SOCSO, EIS, PCB, and EA should be applied during payroll processing. Commission records created here can later be assigned to employees and included in the payroll calculation process.

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Create New Commision:

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8. Claim

Purpose

The Claim module manages employee reimbursement categories used in the Claim Approval process. Create new claim by code, description, month limit, annual limit and active. It allows the company to set claim categories and control the maximum claim amount that employees can submit within a month or year.

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Create New Claim:

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9. Leave Setup

Purpose

The Leave Setup module configures company leave policies and entitlement rules. Create new leave setup by code, description, active and select details leave type. It defines which Leave Types are available, employee confirmation requirements, entitlement schemes, and maximum carry-forward days. This setup allows the payroll system to automatically calculate employee leave entitlement based on company policies.

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Create New Leave Setup:

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allows administrators to combine different Leave Types with entitlement schemes based on employee confirmation status and years of service.

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10. Leave Type

Purpose

The Leave Type module defines the different categories of leave available to employees. Create new leave type by code, description, label color, select active, entitle, unpaid, balance forward. HR administrators can configure leave rules such as entitlement, unpaid status, and balance carry forward settings. This setup allows the system to automatically manage employee leave balances and leave applications.

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Create New Leave Type:

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Chapter 3: Payroll Transaction

3.1 Claim Approval

Purpose

Employees submit leave applications.

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Create new claim record:

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Workflow

Payroll
      ↓
Calender
      ↓
Apply
      ↓
Select Employee, Leave Type, Days, Leave Length, Status Approve, Reason
      ↓
Apply Leave

3.2 Leave Approval

Purpose

Managers review and approve leave requests.

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Workflow

Payroll
      ↓
Calender
      ↓
Approve / Reject

3.3 Payroll Entry

Purpose

Calculate payroll for a selected period.

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Create new payroll entry record:

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Payroll Flow

Payroll
          ↓
Payroll Transaction

3.4 Payroll Process

Purpose

Generate employee payslips after payroll has been processed.

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Create new payroll process record:

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3.5 Forms / Data

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Payroll print payslip

1. Register Employee, set wages / basic salary

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2. Create Payroll Entry

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3. Create Payroll Process

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4. Manage Payslip

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5. Add Payslip for Employee

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6. Release Payroll

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7. Right click payroll, click payslip, print payslip

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Apply Employee Leave

1. Register Employee

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2. Apply Leave at Calander

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3. Find the leave approval

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4. Approve the Leave

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Chapter 4: