Payroll Entry
The total of all wages that a company is required to pay its workers over a specific time period or on a specific date is known as payroll. Payroll Entry in Frappe HR makes it possible to process employee payroll in bulk. Stated otherwise, processing all employees’ pay stubs at once. The company-wide bulk processing or the following categories may be used: Department, Branch, or Designation.
To gain entry to Payroll Entry, visit:
Home > Payroll > Payroll Entry > Human Resources
1. How a Payroll Entry is Made
- Navigate to the Payroll Entry list and select New.
- Choose the frequency of payroll.
- To exclude workers, choose Department, Branch, and Designation (optional).
- If you wish to run the payroll against a project, choose Project (optional).
- To deduct the salary based on attendance or to take into account the employees’ timesheets,
- respectively, check the ‘Validate Attendance’ and ‘Salary Slip Based on Timesheet’ boxes.
- To make the bank entry, choose the Payment Account.
- Conserve.
- To obtain a list of employees for whose salary slips will be generated depending on the chosen criteria, click the Get Employees button after the data has been saved.
- To create salary slips, click the Create Salary Slips button after the employee list has been retrieved.
Note: The system won’t generate any more salary slips if they have already been created. Another option is to just keep the form as a draft and make the salary slips at a later time.
2. Qualities
2.1 Accrual of Salary
- Once the Salary Slips have been verified, you can click the Submit Salary Slip button to submit them all at once.
- Entry of Payroll
- Additionally, this will record the accrual of employee salaries by booking the default Payroll Payable account against the corresponding Expense Heads (as set in Salary Components).
Centre of Cost:
- In the Payroll Entry that the expenses will be filed against, you can choose Cost Centre.
- Payroll Cost Centre can be configured in the Employee/Department master if you wish to book expenses against multiple cost centres according to Employee/Department.
- A single employee may even have more than one cost centre assigned to them. The Salary Structure Assignment document is one way to accomplish this.
- The highest priority in the Salary Structure Assignment is given to the Cost Centre, followed by the Department Master and the Employee. The Cost Centre that was chosen during Payroll Entry is given the lowest priority.
Note: A journal entry to record salary accrual will not be created if salary slips are manually submitted one at a time.
2.2 Payment of Salaries
- Scheduling the Salary Payment is the last step.
- Businesses typically handle salaries in a very private manner. Most of the time, businesses pay the bank a single sum that includes all of the salaries, and the bank then deposits the money into each employee’s salary account.
- In this manner, the company’s books of accounts only include one payment entry, and the individual salaries are not accessible to anyone with access to the company’s accounts.
- The salary payment entry is a journal entry that credits the default account set at the Salary Component level for each component with the total of all employees’ deduction-type salary components and debits the total of their earnings-type salary components.
- Click the Make Bank Entry button to create your salary payment voucher from Payroll Entry.
- To examine the prepared draft Journal Vouchers, Payroll Entry will direct you to Journal Entry with the appropriate filters. You must submit the journal entry and specify the date and reference number for the transactions.
Note: Frappe HR will record separate draft journal entries for salary components that are flexible benefits and have the option to Create Separate Payment Entry Against Benefit Claim ticked.
