Tally Payroll Tutorial - Part I

The four steps include: 1. Creating Pay heads 2. Creating Employee Master 3. Creating Salary details 4. Process payroll and generating Pay slips.

Tally 9 offers payroll for wages and salary to workers and employees. The payroll is not enabled by default while you create the company. To enable it press F11 to open Accounting Features screen.

Under Cost/Profit Centers Management, you will find Maintain Payroll. Give yes and press ESC to exit. Now, in Masters Menu there is a new sub-menu 'Payroll Info', and in Transactions Menu Payroll Vouchers In the Payroll Info menu there are Sub menus

Pay Heads Employee Groups Employees Salary Details Units (Work) Attendance / Production Types Voucher Types.

You need to create employees for the Salary Details menu to be enabled. Pay Heads First you need to create the pay heads. Pay head creation is essential as it is used in payroll ledger and Payroll voucher entry. Creation of pay head is done by clicking Pay Heads and clicking Create. Give a name for pay head for example, Production Wages In the Pay Heads Type below select appropriate Type. The following are available

Deductions from Employees (For deductions create this pay head) Earnings for Employees (For wages / salary create this pay head) Employees' Statutory Deductions (For ESI and other create this) Employer's Statutory Contributions Gratuity Loans and Advances (For Advance and Loan payments create this) Reimbursements to Employees

It is obvious that for different payments create different pay heads. For deductions from advance create Advance Deductions under type Deductions from Employees, and for Production Wages select type Earnings fro Employees. Calculation Type There are four calculation Types:

As Computed Value As User Defined Value Flat Rate On Attendance On Production

In Tally Payroll Tutorial - Part I we see the masters vouchers for payroll. Now we will see how to create them with a case study example: Consider a manufacturing company the produces cloths (for example, powerlooms producing Gad cloths). There are two kinds of employee on the companys payroll 1. PCS Rate wages (based on the production done) 2. Daily wages (Fixed flat rate) For example the following two employees works on PCS Rate 1. Sundar - Rs. 2.50 per Unit 2. Ponnusamy - Rs. 2.75 per Unit The following two are paid daily 1. Karthi Rs. 150 per day 2. Suresh Rs. 175 per day Now you have to create payroll for them using Tally. How can you do? It is very easy. Here are the steps you need to follow: Firs you need to create pay heads in Payroll master. We need two pay heads: 1. Wages Daily (For Daily Flat wage employees) 2. Wages PCS Rate (For PCS Rate employees) Before creating Pay Head you need to create Attendance / Production Types Before creating production Types you need to create work unit Go to -> Units (Work) Select Create Give Symbol: Mtr (for cloths manufacturing, it depends on company) Format Name: Meter Number of Decimal places: 1 Give Y to Save This is used to pay head for production based pay

Similarly create another unit with Days as symbol name Now select 'Attendance / Production Type' under Payroll Info Select Create Name: Cloths produced Under: Primary Attendance Type: Production Unit: Mtr

Similarly Create another with Name: Attendance Under: Primary

Attendance Type: Attendance / Leave with pay Period Type: Days

Now go to pay heads

Select Create Name: Wages by Attendance Page Head type: Earnings for Employees Under: Direct Expenses Appears in pay slip: Yes Calculation Type: On Attendance Attendance / Leave with pay: Select Attendance (We just created before) Calculation Period: Days

We just created one pay head. Create another Name: Wages by PCS Rate

Page Head type: Earnings for Employees Under: Direct Expenses Appears in pay slip: Yes Calculation Type: On Production Attendance / Leave with pay: Select Cloth Produced (We just created before) Now you create employees and Employee Groups Create two employee Groups 1. Daily Wages Employees 2. PCS rate Employees Create employees: Karthi and Suresh in Daily Wages Employee Group Ponnusamy and Sundar in Pcs Rate Employee Group Now go to Salary Details under Payroll Info Select Create Under Employee / Group select Sundar Under pay head select Wages by Pcs Rate and under rate give 2.50, under per give mtr Accept and give yes Similarly for ponnusamy give 2.75

Now select karthi and select Wages by attendance for pay head and give 150 per day Similarly for suresh give 175 per day

Great! You are finished with masters. Lets go to Transactions in Tally Payroll

In Tally Payroll Tutorial Part II you created required masters to create payroll vouchers. You were introduced to Payroll masters, how to create pay heads, Employees, Salary Details, Units, Attendance / Production Types. Now it is time to generate your first payroll. We will continue the case study Given are the attendance / production details for the 4 employees for two different dates. Date : 20-aug-2009 1. Sundar - 50 mtr production 2. Ponnusamy - 75 mtr production 3. Karthi .5 days 4. Suresh 1.0 days Date : 21-aug-2009 1. Sundar - 65 mtr production 2. Ponnusamy - 60 mtr production 3. Karthi 1.0 days 4. Suresh 1.0 days Got Payroll vouchers Select Attendance button Press F2 to change current Date to 20-aug-2009 Select Attendance Auto fill (CTRL + A) Select Pcs Rate Employee Group Select Cloth Produced Production Type For Ponnnusamy Give 75 mtr and for sundar give 50 mtr and accept to save.

Again select Attendance Auto fill Select Daily Wage employee Group Select Attendance as type For Karthi give 0.5 days and Suresh Give 1 day and accept to save

Similarly change date to 21-aug-2009 and give above values for that date Now you have created 4 Attendance vouchers.

Now click Payroll button (CTRL + F4) Click Payroll Auto fill (ALT + A) From: 20-08-09 To: 21-08-09 Employee / Group: All Items Pay Ledger: Cash (You can create Bank Ledger and select it) Enter

Voila! Payroll is generated for all employees. Accept and Save Take a cup of coffee and relax! We have learnt to create Basic Payroll. You can create any number of employees, Group them under any department / function like Accounts, Sales, Marketing, Security, Logistics, Stores anything you like. There are advanced concepts in Tally payroll like Gratuity, Advance, Bonus, and Reimbursement. First master the basic concepts of Tally 9 payroll and come to advanced topics

Tally Payroll Tutorial - Part IV

Tally Payroll Tutorial - Part III explained how to generate payroll with attendance and production entries. Now you will see how to print pay slip for individual employee or group of employees. To print pay slips go to Multi Account Printing -> Multi Payslip printing.

Select No for the Yes or No prompt.

You can give from, to dates, which employee or group of employees to be printed and other options. Ok. This is the last part of Tally Payroll Tutorial. I have covered the basics