Pay Element – An Overview

Pay Elements are the various components of a pay structure, combinations of which form the pay structure. Typical pay elements include Basic Salary, Dearness Allowance, House Rent Allowance and Statutory Deductions.

The Payroll Element component is used to add, modify and view a pay element, map a pay element to a reimbursement item, account number through the following activities that are briefly explained below.

Defining pay element

This activity is used to define the various pay elements that are applicable to an organization.  Each pay element is defined with a unique code, description and alias. The organization group to which the pay element will be applicable must also be specified.

Modifying pay element

This activity is used to modify or delete an existing pay element.  The details of the pay elements can be changed and these modifications can be applied to the corresponding records in the other available languages.  In addition, the mapping of the pay element record with the organizational units within the organization unit group can be modified.

Mapping pay element account

This activity is used to map each pay element with a General Ledger account number. Mapping is possible only if the Payroll component is integrated with Ramco Financials.  For the individual pay element, you can choose to specify (i) Specify separate ledger account numbers from the Finance Book, for different organization units, categories, grades, or any combination of them as required or (ii) Specify a common account number across organization units, categories and grades.

Mapping pay element – reimbursement item

This activity is used to map a reimbursement item to a pay element and also modify the same.  As you map a reimbursement item to a pay element, you indicate that the value of the reimbursement item will be paid under the specified the pay element.

Setting Accumulators

This activity,is used to define  the values for accumulators and modify the same. You can also modify the same. As you define a accumulator, you indicate that it is a set of pay element values.

Viewing pay element

This activity is used to view the pay element details such as the description, alias, attributes of the pay element, classification of the pay element record etc.  The most recent mapping/ unmapping of the pay element to various organization units can also be viewed.

Viewing pay element – account mapping

This activity is used to view the mapping details of a specified pay element with various account numbers from the General Ledger. This activity is possible only if the Payroll component is integrated with Ramco Financials.

 Getting familiar with the activities inside

The following table lists the activities involved in adding, modifying, viewing and mapping pay elements in the employee pay element component.