Tally Payroll Part I

Tally Payroll Tutorial - Part I

Tally 9 offers payroll for wages and salary to workers and employees. The payroll is not enabled by default while you create the company. To enable it press F11 to open ‘Accounting Features’ screen.



Under Cost/Profit Centers Management, you will find Maintain Payroll. Give yes and press ESC to exit.

Now, in Masters Menu there is a new sub-menu 'Payroll Info', and in Transactions Menu ‘Payroll Vouchers’

In the Payroll Info menu there are Sub menus

• Pay Heads
• Employee Groups
• Employees
• Salary Details
• Units (Work)
• Attendance / Production Types
• Voucher Types.

You need to create employees for the ‘Salary Details’ menu to be enabled.

Pay Heads

First you need to create the pay heads. Pay head creation is essential as it is used in payroll ledger and Payroll voucher entry. Creation of pay head is done by clicking Pay Heads and clicking Create. Give a name for pay head for example, ‘Production Wages’

In the Pay Heads Type below select appropriate Type. The following are available

• Deductions from Employees (For deductions create this pay head)
• Earnings for Employees (For wages / salary create this pay head)
• Employees' Statutory Deductions (For ESI and other create this)
• Employer's Statutory Contributions
• Gratuity
• Loans and Advances (For Advance and Loan payments create this)
• Reimbursements to Employees

It is obvious that for different payments create different pay heads. For deductions from advance create ‘Advance Deductions’ under type Deductions from Employees, and for Production Wages select type ‘Earnings fro Employees’.

Calculation Type

There are four calculation Types:

• As Computed Value
• As User Defined Value
• Flat Rate
• On Attendance
• On Production

I don’t want to complicate with all these types. For now we will see how to create employees and enter their attendance / production details and take payroll.

Now follow me to Tally Payroll Tutorial Part II