Payroll Month End — Compute & Generate Payslips

Step-by-step Lab (60 mins)

1. 1

   Create Employee Masters

   Create 10 employee records with personal, bank and statutory info (PAN, PF no., ESI if applicable). Assign departments and designations.

2. 2

   Define Salary Templates

   Create salary templates: Basic, HRA, Conveyance, Special Allowance, ESI/PF applicability and deductions. Template 1: Monthly Fixed. Template 2: Hourly-Contract with overtime rules.

3. 3

   Process Attendance & Leaves

   Import attendance or mark monthly in the system. Apply approved leaves without pay where necessary and account for half-day / overtime entries.

4. 4

   Compute Payroll & Statutory

   Run payroll preview: compute gross pay, employee & employer PF, ESI, professional tax and TDS. Review exception logs.

5. 5

   Process Loans/Recoveries

   Apply loan EMI deductions and advances recovery. Ensure recoveries are within statutory limits.

6. 6

   Generate Payslips & Bank File

   Export payslips as PDF and generate NEFT/CSV bank file for salary disbursement. Archive payslip PDFs for audit.

7. 7

   Post Payroll & Reports

   Post journal entries to accounting (salary expense, employee liabilities) and generate statutory reports (PF, ESI, TDS summaries).

Practice Tasks & Templates

1. Create 10 employee masters and assign 2 salary templates.
2. Import attendance for the month and run payroll preview.
3. Apply one loan deduction for an employee and verify net pay.
4. Generate payslips (PDF) and NEFT bank file.
5. Export PF/ESI/TDS summary reports for filing.

Downloadable templates

Quick Quiz