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Prerequisites

  • Under Setup > Payroll Settings, confirm:
  • Default Currency (e.g., NGN).
  • Default Bank Account for salary disbursement.
  • Cut-off Date for attendance, deductions, and allowances (commonly end of month).
  • Under HR > Payroll Period > Payroll Period List, ensure upcoming periods are defined (e.g., “August 2025” with Start Date 2025-08-01 and End Date 2025-08-31) and set to Open status.
  • Every active, paid employee must have a Salary Structure assigned under HR > Salary Structure.
  • Verify that recurring Allowance Entries, Deduction Entries, and any Overtime Records for the month are set up before the scheduled run date.
  • Under Setup > Email Alert, create or confirm alerts for:
    • “Payroll Entry Generated”, alerting HR when an automated run completes.
    • “Payslip Ready”, notifying employees when their payslip is available.

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Step 1: Define Salary Structures and Components

  1. Navigate to HR > Salary Component > Salary Component List.
  2. Ensure all required components are defined with correct Component Type (Earning or Deduction) and Computation Formula (if based on percentage or fixed amount).
  3. Click HR > Salary Structure > Salary Structure List, then New to create a structure:
    • Salary Structure Name: e.g., “Engineer - Grade A.”
    • Employee or Employee Group: link to individual or group (e.g., “Engineers”).
    • In the Earnings section, add rows for each component (Basic, HRA, etc.), specifying amount or percentage of Basic.
    • In the Deductions section, add rows for PF, tax, or other deductions.
  4. Click Save, then Submit. The structure can now be assigned to employees.

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Step 2: Assign Salary Structures to Employees

  1. Go to HR > Employee > Employee List.
  2. Open an employee’s record and click Edit.
  3. In the Payroll Settings section:
    • Salary Structure: select the appropriate structure (e.g., “Engineer - Grade A”).
    • Payment Days Per Month: typically “26” or “30” depending on policy.
    • Bank Account: select the default account for net pay disbursement.
  4. Click Save. Repeat for all employees.

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Step 3: Capture Attendance and Leave Data

  1. Ensure all attendance records for the month are submitted:
    • Navigate to HR > Attendance > Attendance List.
    • Verify that any absences, overtime, or irregularities are correctly recorded.
  2. Confirm leaves taken are approved and reflected under HR > Leave Application > Leave Application List.
  3. If using biometric or third-party attendance integration, sync data before proceeding.
Use HR > Leave Balance Report to confirm leave balances and handle encashment or unpaid leave deductions.

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Step 4: Generate a Monthly Payroll Entry

  1. Navigate to HR > Payroll > Payroll Entry > New Payroll Entry.
  2. In the Payroll Entry form:
    • Fiscal Year: e.g., “2024-2025.”
    • Month: select the month for processing (e.g., “June 2025”).
    • Company: choose your entity (e.g., “Charisma Global Industrial Co.”).
    • Payroll Date: defaults to the last day of the month; adjust if needed.
  3. Click Get Employees. CGIC fetches all active employees with assigned salary structures.
  4. In the Salary Slip table, each row shows:
    • Employee name and Employee ID.
    • Salary Structure.
    • Gross Pay (sum of all earnings).
    • Total Deductions (PF, tax, etc.).
    • Net Pay (Gross − Deductions).
  5. Review each line for correctness. If any anomalies appear (e.g., zero net pay or negative), click that row to open the individual Salary Slip and adjust salary components, leave deductions, or allowances.
  6. Once satisfied, click Save to retain the draft payroll. Then click Submit to finalize:
    • CGIC creates individual Salary Slip documents for each employee.
    • Payroll journal entries post:
      • Debit: Payroll Expense accounts (Basic, HRA, etc.).
      • Credit: Payroll Liability accounts (PF Payable, Tax Payable).
      • Credit: Bank or Cash account for total Net Pay.

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Step 5: Disburse Net Pay to Employees

  1. After Submitting the Payroll Entry, navigate to HR > Payroll > Payment Reconciliation.
  2. In the Payment Reconciliation tool:
    • Select the Journal Entry created by the payroll (e.g., “Payroll-Jun-2025”).
    • Click Show Unreconciled Entries to list net pay credits for employees.
    • Select all net pay lines and click Make Bank Entry.
    • A Bank Voucher draft opens with all employee net pay amounts.
  3. Verify bank details one last time. Click Save, then Submit to record the bank transaction.
    • Funds are considered disbursed on this date.
    • Employee salary advances are reduced, and bank balance updates.

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Step 6: Deliver Payslips to Employees

  1. In HR > Payroll > Salary Slip List, filter by Month = June 2025 and Status = “Paid”.
  2. Click Download > PDF to export all payslips as a consolidated PDF.
  3. Email or upload to the employee portal:
    • Click Send Email in the Payroll Entry or Salary Slip list, selecting the template “Salary Slip Email.”
    • CGIC sends individual payslips to each employee’s registered email.
  4. Confirm receipt by checking the Email Queue under Settings > Email Account for any bounce or failure notifications.