Payroll master creation in tally- Lesson-2

Are you new to this payroll tutorial? You may want to read our first lesson where we had discussed about manual payroll calculation and activation of payroll in tally. The complete payroll  tutorial in this blog  based on the example given in the first lesson.

Here we are starting payroll processing by creating the following masters.

1. Employee Group creation.
2. Employee Creation
3. Work Unit Creation
4. Attendance Production type Creation

Employees Group Creation

Employee group is used to classify employee based on their work nature or based on their department they work. For example you can create Sales group for people working under sales department and Accounts group for employees working under it. This will help you to trace departmental salary expenses.

Gateway of tally » PayroLinfo» EmployeeGroups »Create

Let us create a sales group, the screen shot is enough for understanding.

Create an “administration” Employee group yourself same as above.

Create Employee.

Here you can create employee and enter the relevant details related to him, you can enter his/her contact details, passport, visa details, contract details, these can enable through payroll configuration as discussed as discussed in previous lesson.

Gateway of tally » Payroll info» Employees »Create

Create employee Anand, by entering all the details, note he is working under sales department. Hence he can be categorized under sales group.

Create Employee Krishna in the same way.

Work Unit Creation

Gateway of tally » PayrolLinfo» Units (Works) »Create

We are calculating the attendance either by number of days present or by number of days absent. So the unit of measure is “Day”. If you are paying in accordance with the number of hours worked, or number of units produced you can create attendance type “Hours” or “Units” etc. We will discuss salary based on production later

Attendance Production types creation

This is to record number of days worked, number of days absent or number of hours worked, number of unit produced etc.

Gateway of tally » PayrolLinfo» Attendance/Production Types »Create

In this example we are calculating salary based on number of leave taken. But some leaves are allowed with pay as per company rules. Hence we need to create two Attendance type. Leave with pay, and Leave without pay.

Leave with pay attendance type is to record number of allowed leave days with pay

Now create attendance type Leave without pay for recording number leave without pay

Here we concludes this lesson, the next lesson is comprehensively about pay head creation which required bit more discussion. Your comments on these tutorials are invited and that help me to improve the quality of this guide. If you liked this post you may want to subscribe our email news letter .

Lesson-1 How to process payroll in tally

Lesson-2 Payroll master creation

Lesson-3 Pay head creation

Lesson-4 Employees salary deduction pay head creation

Lesson-5 Employer statutory contributions and other charges pay head creation

Lesson-6  Defining Salary structurein tally for faster data entry

Lesson-7  creating payable ledger and attendance voucher entry

Lesson-8  Processing of Salary PF, ESI