Salary Slip from Timesheet
Employee salary can be computed for the hours worked against particular tasks or projects, recorded through Timesheets. ERPNext v15 enables you to generate a Salary Slip directly from a Timesheet to ensure correct and time-based payroll processing.
This functionality is especially beneficial in industries where services are provided, freelancing engagements, and shift work arrangements where compensation is based on logged time instead of traditional monthly pay arrangements.
Creating a Salary Slip from a Timesheet
Go to the Submitted Timesheet: After submitting and filling out the Timesheet, you will be able to access post-submission operations.ter submitting and filling out the Timesheet, you will be able to access post-submission operations.
Click Create Salary Slip: The Actions menu is placed on the top right of the Timesheet form as a tab named Create Salary Slip. It can also be made using Payroll module. The Timesheet automatically fetches up Employee and Employee Name. Pulled information includes the Company Name, Branch, Designation, and Letter Head information which is taken off the Employee Master.
Employee tags for cost allocation and reporting for Project and Task (if they are specified in Timesheet).
Date Range (Start Date and End Date): These are automatically fetched from the Timesheet, specifying the period for which payment is being computed.
Salary Slip Timesheet Table: The starting Timesheet ID of the Salary Slip is referenced here. Additional Timesheets can be added via "Add Row" convenient when preparing multiple slips for weekly periods. Total Hours, Billable Hours, Costing Rate, and Billing Rate are shown per Timesheet.
Workforce Allocation Details: Department and Cost Center are retrieved for accurate general ledger posting. Timesheet-based costing information allows accurate tracking of costing-to-payroll reconciliation.
Save and Submit: After confirming all auto-fetched and manually changed information, click Save. After saving, click Submit to complete the Salary Slip. After submission, entries post to Payroll Ledger and the slip becomes ready for payment processing.
Additional Details while Creating a Salary Slip from a Timesheet
Earnings and Deduction: You can input Earnings such as HRA, Incentives, etc., and Deductions like Income Tax, Provident Fund, etc., as the case may be in the Salary created from the Timesheet.
Other Information: Depending on the Employee's Salary Structure, entries such as Gross Pay, Loan Repayment Info, and Net Pay will get filled automatically.
When "Salary Slip Based on Timesheet" is enabled under the Salary Structure and the Salary Slips are made under Payroll Entry by selecting "Get Employees" and then "Create Salary Slips" then the system automatically calculates overtime on the basis of hours in related Timesheets.
Post Submitting
After Salary Slip submission, associated Timesheets are booked into the Salary Slip.
Note: In contrast to Sales Invoice, the Timesheet itself is not updated with salary fields such as "Total Paid Hours." The entire salary calculation is still in the Salary Slip and Payroll modules.
When Payroll Entry is processed, accounting entries are posted: salary expense is charged and corresponding payable accounts are credited. In case of overtime included through Timesheets, the amount is also calculated in the Final Salary Slip.