Stages of Payroll Accounting

The Payroll Accounting is done in different stages. The stages are as follows :

Stage 1
Pay Heads Creation
Pay Head means the components of a salary structure. For example- Basic, Dearness Allowance(DA), House Rent Allowance(HRA), Provident Fund(PF), etc.

Stage 2
Recording Details of the employees
From Employee masters, employee details are to be recorded. Employees can also be grouped on the basis of their designation or department.

Stage 3
Defining Salary Structure
The contents of the salary structure and the basis of their computation are defined using the Salary Details option. Salary Details can be set for both grouped employees and individual employees.

Stage 4
Payroll Processing and Generating Payslip
Payroll Voucher is to be entered to record salary processing details. Salary Payslip for all employees also needs to be generated which not only provides the employees attendance but also the earning components and deductions of the employee, and show the net amount paid to him for the pay period.

Details of this Stages will be provided in the next post.