Step 1: Create Employee Masters
Create an Employee master. Enter the requisite Employee Details & Employee group by grouping employees under
the function they perform; their department or designation.
Step 2: Create Payroll Masters
Create the Payroll Units. Create the Attendance/Production Type to record the Attendance and Production details.
Step 3: Create Pay Heads
The components of structured salary are created under Pay Head.
Create the salary structure components in pay head. The Pay head creation in Tally.ERP 9 is very user friendly.
Tally.ERP 9 allows creating any complex type of pay head.
Step 4: Create Salary Details
Create the applicable Salary Details for both Employee Groups as well as Individual Employees with earnings,
deductions and basis of computation.
Step 5: Process Payroll and Generate Payslip
Pass a Payroll Voucher to enter all Earnings and Deductions in payroll transactions that are paid along with the
Salary Payslip for all employees.
Generate the Payslip that provides employee as well as attendance details, itemises each component of the
employee’s earnings and deductions, and displays the net amount paid to him for a given pay period. It also
provides information to the employee as to how the net amount was arrived at.