How to do payroll entry in tally
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.