Before you will be able to calculate the amounts earned by the entity's employees during each period, you need to provide all the necessary information on the employees and configure the system using the Administration > Settings > HR and Payroll form. For more details on the settings, refer to Settings: HR and Payroll.
If your entity allows the employees purchases (through the entity) of services or products for private use, applies fines to employees for breach of policies or uses other deductions, select the Enable Payroll Deductions option.
If you provide loans to employees and periodically receive loan repayments from employees, select the Enable Loans to Employees option.
If you are going to pay to your employees for their labor using the Wages Protection System, select the Enable WPS (Wages Protection System) option. For more information, refer to Overview of WPS file processing.
Settings for Tracking Work Time
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Using the HR nd Payroll > See Also > Work Day Calendars form, create all the different calendars that are in use in your organization. Refer to Work Day Calendars for more details.
Make sure that the default Work Day Calendar is selected for each entity in the entity's master record on the Accounting > Master Data > Entities form.
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In the current year, for each Work Day Calendar, you need to generate a Work Schedule that defines particular work hours by using the HR and Payroll > See Also > Work Schedules form. If different employees work according different Work Day Calendars, generate all the possible schedules. Mark the interval intended for work as working time and mark unpaid intervals intended for meal breaks or other breaks as non-working time. Refer to Work Schedules for more information.
Types of Work Time
On the HR nd Payroll > See Also > Work Time Types form, review the predefined types of work time to be used to correctly track working time. If needed, add more work time types that are specific for your business. Under different Work Time Types, for each employee their worked time of this type during each period will be accumulated. For details, refer to Work Time Types.
Compensation Options
Make sure that all the available in your organization types of compensation (Accrual Types) and withdrawals (Deduction Types) are configured using the HR and Payroll > Master Data > Accrual and Deduction Types form.
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There is a list of predefined earning types, such as Salary Daily, Salary Hourly, Overtime Hours, Bonus from Sales. There are two predefined Accrual Types for fixed-amount allowances – Accomodation Accommodation, Transportation.
You can use the predefined types or add custom types by creating formulas which may include system parameters, such as SalaryFixedAmount, DaysWorked, HoursWorked, Overtimehours, and so forth that will store the actual data for each employee. Earning and deduction types can be configured as amounts calculated based on actual worked time tracked by day or by hour. For details, refer to Accrual and Deduction Types.
Benefits available for employees are defined using the HR and Payroll > Master Data > Employee Benefit Provisions form. Some of benefits depend on the employee salary, worked time, while others - do not depend. Generally, benefits are paid once a year through provisions: the defined benefit amounts are accrued monthly and are being accumulated on the intended GL accounts until paid. The available functionality allows you to configure various types of benefits.
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