Salary Revision - Arrear Calculation for current Period - Tally

Illustration 2:

On 15th August 2009, M/s. Spectrum Software Solutions revised the Salaries for the following Employees. Such revision is effective from the current month i.e., August 2009.

The revised Salary structure is as follows:

revised Salary structure

Before processing the Payroll voucher for Salary revisions, it is essential to update the Salary Details of the Employee to take effect the declared Salary Revision / arrear payment for/from the relevant period.

Step 1: Modify / Alter Salary Details

Go to Gateway of Tally > Payroll Info. > Salary Details > Alter

  • Select Ajay from the List of Groups / Employees
  • Tab down to End of List, by pressing Enter
  • Specify 01-08-2009 in the Effective From field and press Enter
  • Select Copy From Previous Value from the Start Type drop down list

The Salary Details Alteration screen is displayed as shown:

Salary Details Alteration screen

Salary Details Alteration screen

  • Press Enter to prefill the pay structure (comprising of Earning & Deduction Pay Heads) of the preceeding period for the specified period
  • Press Enter on Basic Pay Pay Head and alter the amount to 11000
  • Press Enter on HRA Pay Head and alter the percentage to 30% (To alter the percentage, ensure in F12: Configure, Allow to Override Slab Percentage is set to Yes)
  • Tab down to Conveyance Pay Head and alter the amount to 2000

StartType Options:

Copy From Parent Value: This option is selected, when the pay structure details of the Parent group (to which Employee Group, the employee is grouped under or falls) is required to be prefilled in the Salary details master.

Copy From Previous Value - This option is selected, when the pay structure details of the Employee for a preceeding period is required to be prefilled for a future period, in the Salary details master.

Start Afresh: This option is selected, when the pay structure details of the Employee has to be created newly.

  • Press Enter to go to the End of List

The completed Salary Details screen is displayed as shown:

Completed Salary Alteration screen

Completed Salary Alteration screen

  • Press Enter to Accept

Step 2: Record Attendance

Record Attendance voucher in the manner as explained before.

The completed Attendance Voucher for August 2009 is displayed as shown:

Completed Attendance Voucher

Completed Attendance Voucher

Step 3: Process Payroll Voucher

Effective August 2009, the revised salary for Ajay will be computed automatically, while processing Payroll voucher for the month of August along with the other employees or you may also choose to process Ajay’s Payroll voucher separately, if required.

Go to Gateway of Tally > Payroll Vouchers

  • Press Ctrl+F4 for Payroll Voucher
  • Press Alt+A (Payroll Auto Fill) to prefill employee payroll details
  • In the Payroll Auto Fill subscreen
    • Select Salary in the Process for field
    • Specify 1-8-2009 and 31-8-2009 in the From and To fields respectively
    • Select Ajay in the Employee/Group field
    • Select Salary Payable in the Payroll Ledger field
    • Press Enter to accept the screen
  • Press Enter to prefill the salary amount (inclusive of increment amount) for the current period

The completed Payroll Voucher for August 2009 is displayed as shown:

Completed Payroll Voucher

Completed Payroll Voucher

You may process Employer and Employee’s contribution to Provident Fund and Employee’s State Insurance and payment of Profession Tax in the manner as discussed in the earlier

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