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Tally supports payroll processing with quite easy navigation and it covers almost every important feature of a perfect professional payroll processing software. Payroll in tally is most favorite feature and I love this.

We have already gone through following basic configuration and master ledger creation for payroll in tally

Activation of payroll and employee creation

employee attendance in tally

creation of pay head

Now we will go a further and important step. today I will let you know how to create salary details for an employee and how to pass an automated payroll entry in tally.

From main menu of tally Press L or Payroll Info

Now select create to create salary structure of an employee for the first time.This is a one time setup requirement

You will find the list of all the employees as shown below. you have to create salary structure step by step for each every employee. Select name of employee for which you want to create salary details. If you are not familiar how to create an employee then please refer my article on creating an employee

After selecting an employee you will find below screen. the date may be the joining date of the employee if its the first time set up.

Now select the pay head from the pop up window as show above.

Basic salary is a fixed amount so you have to fill up the figure for basic salary. Before you go ahead please have a look on how to create pay heads in tally.

After basic salary just select provident fund and leave the amount field as blank and accept the screen by pressing CTRL+A. provident fund will be calculated automatically by the system at the time of payroll voucher entry.

At this moment I will only explain a simple module to understand. I will write about more complex salary module such as HRA, Conveyance, special allowances, employer’s contribution towards provident fund, professional tax deduction, ESI Gratuity etc.

Now let’s see how to make voucher entry to credit salary of an employee at the end of the month. Go to main menu of tally and press “Y” or select payroll Vouchers under Transactions.

now from the right side bar select Payroll Auto fill or press ALT+A

you will find following pop up.Select Salary

then select starting date and ending date of month i.e. 1st April to 30th April

Now select all employees or a particular employee for which you want to pass a salary voucher. here at the moment we have created only one employee so this option will have no effect. Select all and press enter

and its done! salary will be calculate  automatically and employee provident fund will also be deducted automatically from the gross salary payable to employee. so you have only to pay net salary to the employee as per ledger.

Tally’s payroll system is complete automated system and like any other payroll processing software, it also require one time basis set up. I have explained simple set up. In future, we will cover more topic like deduction of salary for absent days, arrears of salary, ESI, Employer’s contribution to PF fund as well as to EDLI and pf  administration exp. and salary disbursement etc.

27 thoughts on “How to do payroll entry in tally

  1. Dharmendra Kumar Sharma says:

    Thanks for tally advice

    regards

  2. vikas baheti says:

    how to manage casual leaves & its balance

    1. Vikas,
      Managing casula leave is as easy as managing absent and presence and it is excellent feature of Payroll in Tally.erp 9.
      just create a new attendance type ” Casual Leave” in Tally.erp 9 and when an employee availe a casual leave, select the attendance type as “Casual leave ” for him for the days of such leave.
      presently,
      While managing leave balance, you have to wait for a while as current opening / closing balance facility is not available but I hope it will coming soon after that we can manage leave balance easily

  3. thank you very much for ur advice i believe u has my guru

  4. Please tell me about payroll & cost center in tally9ERP

  5. mangalore says:

    please tell me about payroll & cost center, PF and Esi entries in Tally 9 Erp….please send details about this to my email id.. @rediffmail.com

  6. Overtimes is based on Basic Salary per month which is further calculated on hour basis at 8 hour per day.

    We pay overtime @1.5 time (ie. One & half hour pay) for each hour of overtime. How do I automatically compute Overtime figures in Tally ERP9?

    1. Hello Peter,
      This is possible.but you should contact your TP/TSP from whom you have purchased the software.He will definately help you.

  7. i want need ur support sir .. i want to know how to create Payroll in Tally sir.. plz inform me how i do pay roll with problem based solution also needed sir plz give me
    yours sincerely
    srinivas

  8. paras m shah says:

    present working in personal dealership for escorts ltd.so I want to get more knowledge,how to do work in tally payroll and how to do my personal work in tally payroll.Thanks for cooperate.

    your’s faithfully

    paras shah.

  9. how to make outsading salary entry in tally
    salary paid by 15000 after adjesting out sanding salary 4020

    kindly help me out for this entry
    thanks and regards
    abhijeet

  10. Dechen wangmo says:

    i want need Ur support sir .. i want to know how to create Payroll voucher in Tally sir.. plz inform me how i do pay roll with problem based solution also needed sir plz give me
    yours sincerely

    Dechen wangmo

    1. Dechen wangmo,
      It’s a bit long process can not be explained through commenting section. I have wrote several articles on payroll, kindly read the same, follow that and conifgure the primary things required.
      Once done, revert back to me for further information and set up

  11. imran shaikh says:

    how can print ‘yours faithfully’ companies name in tally 7.2?

  12. please tell me how to enter rent receivable, rent received and security deposit for the rent in tally ERP. if possible explain me with youtube.

  13. atasi chowdhury says:

    How to make a attendance voucher in tally 9.

  14. Sohan lal Saini says:

    How to make a attendance voucher in tally 9.

  15. what is the difference between stock items and stock group?

    1. Item is a particular things. Exp. Consider PAPER is a group. then printing paper and cover paper is a ITEMS. ITEMS comes under group.

    2. jitendra Raghuvansi says:

      stock item is a particular items that is laying in stock ex:- stock of soaps, here stock of soaps will contain number of soap.
      on the other hand group of stock will refer variety of stocks ex:- in the stock of soaps different type of soap BREEZE, SANTOOR, LIFE BOY etc.

  16. K.Prashanth says:

    Hai…..
    How to make a attendance voucher in tally 9.

  17. sudhir satpathi says:

    how to use payroll system

  18. in our office, one of the employee,s salary is Rs.18000.we divide his salary as basic salary
    Rs.8100/-(45% of total salary) and allowance Rs. 9900/- .his per day salary is Rs.600/-(18000/30=600).we allow one day in every month as casual leave .In a month he takes two da days leave , that means one leave is casual and other leave is unpaid.we calculate manually
    it as 18000-600(per day salary)-780 (PF)= 16620/- is his payable salary.How to calculate
    it in tally .please make a reply to my email

  19. ARINDAM CHATTERJEE.(BOOM) says:

    TELL ME DETAILS, THAT HOW TO DEDUCTED TDS IN PAYROLL IN TALLY ERP.9.
    IF IS IT POSSIBLE IN TALLY, PLEASE MAKE A REPLY TO MY EMAIL. THANKU.

  20. can somebody help me to enter salary payable entries in payroll.
    Is it possible………..???

  21. In tally how to we dispose salary in Payment (Basic pay , Conveyance , HRA and Special Allowance headings are entered but in ESI and EPF also in dr mode how to change it in cr mode

  22. It’s very difficult to find such information on to internet. I really like reading it.

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