Payroll Process - An overview

The Payroll Process component is used for the computation of employees’ salaries, wages, bonuses, net pay and deductions for a given process period, through the following activities that are briefly explained below.

Performing payroll readiness

This activity is used to check whether these conditions are satisfied and payroll is ready for processing.  Essentially, performing payroll readiness for a payroll prevents the payroll processing from being aborted due to prerequisite conditions not being satisfied.

Processing payroll

This is the activity where the actual payroll processing is carried out.  The session ID uniquely identifies the payroll processing that a system carries out on a payset or payroll. This unique ID is necessary when more than one payroll/payset is being processed simultaneously.

Authorizing payroll

This activity is used to authorize the payroll processing for a given process period.   After processing a payroll in the “Process Payroll” activity, the payroll details must be authorized before the system can use them as input for carrying out accounting.

Setting currency exchange type

This activity is used to specify an exchange type such as Selling or Spot Rate, to convert selected paysets to a different currency. The requirement to specify an exchange type arises when the currency of the base salary of an employee is different from the currency of the payset to which he/ she is mapped.

Setting date of currency exchange rate 

This activity is used to set a date based on which the exchange rate prevailing on that date will be taken into account for conversion of base salary to the payset currency.

Setting the payroll process status

This activity is used to either abort or reset a payroll process.  The requirement arises since certain entries might not have been recorded, or certain leave entries of the employees might not have been entered. In such instances, you abort the payroll process, incorporate the necessary changes and again reset the process.

Setting the payroll readiness status

This activity is used to set the status of payroll readiness for a payset or a payroll. The readiness status can be either abort or reset. The status can be set only if the payroll readiness of the specified payroll or paysets has been initiated in the “Perform Payroll Readiness” page.

Unauthorizing payroll

This activity is used to unauthorize the payroll processing for a specific payroll / paysets, which are applicable for a process period. By unauthorizing, the authorization status of the payset or payroll is reversed. Unauthorizing is carried out when the data needs modifications before it is sent as input for other functions.  A payset or payroll cannot be unauthorized after the data is processed for salary accounting.  

Viewing processed payroll details

This activity is used to view the processed details of a payroll for a specified process period. The details include the total number of paysets mapped to the selected payroll in the current and previous process period and the total number of paysets that have been processed for the process period. The system will also display the comparative analysis about the total number of employees mapped to the payroll, total payments, recoveries and net payments made with respect to the previous process period. 

Getting familiar with the activities inside

The following table lists the activities involved in the payroll process component.