Chapter 1: Getting start with Payroll module

1.1 Payroll Quick Start

Overview

Payroll is used to manage employee salaries, statutory deductions, leave records, claims, allowances, and payslip generation.

Objectives

After completing this chapter, you will be able to:

Task	Result
Configure Payroll	Ready
Register Employee	Ready
Setup Payroll Component	Ready
Process Salary	Ready
Generate Payslip	Ready

Payroll Setup Workflow

Core HR Setup
        │
        ▼
Create Payroll Components
        │
        ▼
Register Employee
        │
        ▼
Assign Salary Structure
        │
        ▼
Configure Statutory Information
        │
        ▼
Setup Account Posting
        │
        ▼
Assign Leave Approver
        │
        ▼
Ready for Payroll Processing

1.2 Payroll Quick Start

Purpose

The Quick Start Guide provides the minimum setup required before payroll processing.

Checklist

Step	Status
HR Profile Setup	✓
Payroll Component	✓
Employee Registration	✓
Statutory Setup	✓
GL Account Posting	✓
Leave Approval Setup	✓

Notes

Complete every setup before processing payroll to avoid calculation errors.

1.3 Setup Statutory Data

Purpose

Configure government-required payroll deductions.

Examples

Component	Description
EPF	Employee Provident Fund
SOCSO	Social Security
EIS	Employment Insurance
PCB	Monthly Tax Deduction

Exxample: Compensation Management

Workflow

Payroll Module
    ↓
Payroll Component
    ↓
Compensation
    ↓
+ Create
    ↓
Enter Contribution Table
    ↓
Save

1.4 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

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

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

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

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

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

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

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

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

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

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

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

1.5 Setup HR Profile (Core Module)

Purpose

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

Required Information

Field	Required
Employee Code	No
Name	Yes
Username	Yes
Email	Yes
Phone	No
Position	No
Role	Yes
Default access branch	Yes

Workflow

Core
   ↓
User Management
   ↓
Create

1.6 Register Employee

Purpose

Required Information

Field	Required
Employee Name	Yes
Birthday	Yes
Retirement date	Yes

Users can configure the employee's payroll information

Workflow

Payroll
   ↓
Employee
   ↓
Create

1.7 Setup Account Posting

Purpose

Posting Workflow

Payroll
      ↓
Payroll COmponent
      ↓
Account Posting

1.8 Setup Superior for Leave & Claim Approval

Purpose

Assign approvers for leave and claims.

Approval Flow

Payroll
      ↓
Calender
      ↓
Apply Leave
      ↓
List View
      ↓
Approve