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:

• Core Module has been installed.
• User has Payroll access permission.
• Company profile has been configured.

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

Expected Result

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

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1.2 Setup Compensation Data

Purpose

Configure government-required payroll deductions.

Example: Compensation Management

This is default record.

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Workflow

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

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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

• Create new job positions

• Edit existing positions

• Assign positions to employees

• Organize payroll by job role

Examples

• Manager

• Supervisor

• Executive

• Technician

• Clerk

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2. Department

Purpose

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

Functions

• Create departments

• Update department information

• Assign employees to departments

• Generate department-based payroll reports

Examples

• Human Resources

• Finance

• Sales

• Marketing

• Production

• IT

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3. Compensation

Purpose

The Compensation module defines employee salary structures and recurring earnings.

Functions

• Configure basic salary

• Set salary frequency

• Manage fixed compensation

• Support payroll calculation

Examples

• Basic Salary

• Fixed Monthly Salary

• Daily Wage

• Hourly Rate

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4. Allowance

Purpose

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

Functions

• Create allowance types

• Configure allowance amount

• Assign allowances to employees

• Include allowances in payroll processing

Common Allowances

• Transport Allowance

• Meal Allowance

• Housing Allowance

• Phone Allowance

• Travel Allowance

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5. Deduction

Purpose

The Deduction module manages salary deductions applied during payroll calculation.

Functions

• Create deduction types

• Configure deduction rules

• Apply recurring deductions

• Include statutory deductions

Common Deductions

• Income Tax (PCB)

• EPF (KWSP)

• SOCSO (PERKESO)

• EIS

• Loan Repayment

• Salary Advance

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6. Overtime

Purpose

The Overtime module manages overtime payment settings for employees.

Functions

• Configure overtime rates

• Define overtime categories

• Calculate overtime earnings

• Include overtime in payroll

Examples

• Normal Working Day

• Rest Day

• Public Holiday

• Weekend Overtime

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7. Commission

Purpose

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

Functions

• Configure commission schemes

• Assign commission to employees

• Calculate commission payments

• Include commissions in payroll

Examples

• Sales Commission

• Performance Commission

• Incentive Bonus

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8. Claim

Purpose

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

Functions

• Create claim categories

• Configure claim limits

• Define reimbursement rules

• Support employee claim submissions

Examples

• Travel

• Medical

• Accommodation

• Meal

• Transportation

• Miscellaneous

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9. Leave Setup

Purpose

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

Functions

• Configure leave entitlement

• Define leave eligibility

• Set leave accrual rules

• Configure carry-forward policies

Examples

• Annual Leave Entitlement

• Sick Leave Entitlement

• Carry Forward Limit

• Leave Expiry Rules

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10. Leave Type

Purpose

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

Functions

• Create leave types

• Configure leave settings

• Assign leave eligibility

• Link leave types to Leave Approval

Common Leave Types

• Annual Leave

• Sick Leave

• Emergency Leave

• Maternity Leave

• Paternity Leave

• Unpaid Leave

• Compassionate Leave

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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

• Configure GL account mapping

• Assign debit and credit accounts

• Link payroll components with accounting codes

• Support automatic accounting postings

Common Posting Accounts

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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

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1.5 Register Employee

Purpose

Register employees into the payroll system.

Required Information

Field	Required
Employee Name	Yes
Birthday	Yes
Retirement date	Yes

Users can configure the employee's payroll information

Workflow

Payroll
   ↓
Employee
   ↓
Create

Expected Result

The payroll component is available for employee salary configuration.

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1.6 Setup 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.

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Posting Workflow

Payroll
      ↓
Payroll Component
      ↓
Account Posting

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1.7 Setup Superior for Approval Request

Purpose

Assign approvers for leave.

Approval Flow

Core
      ↓
Approval Request