How to prepare Pay slip, Payroll report in Tally

In accounting sector each and every accountant need to prepare pay slip, payroll report in Tally or other accounting software on monthly basis. Main important thing if you choose wrong ledger or groups during creating pay heads all entries not shown effect properly at your current accounting. 

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So in this guide we are discussing on “How to prepare Pay slip, Payroll report in Tally”. You know very well about the Tally software. At present time Tally is one only most popular accounting cum inventory software that handles the day-to-day all routine operations of any business unit very effectively.

Must Read: How to Create Multiple Payment POS Invoice in Tally ERP

It is widely accepted by the different accounts for its user-friendly nature. Tally provides different accounting and inventory features that allow any user to maintain his company accounts effectively. After reading this article you will be able to prepare your pay slip and payroll report in Tally software.

So, today we talk about how to prepare Payslip of each employee using Payroll facility in the Tally software. Payroll is an important part of Tally software from which you can easily maintain salary detail of all employees with different pay heads, contact detail or other related detail which is used in the payroll accounting. It is easy way to calculate Employee salary after adding of  DA, TA, HRA or deducting the PF, ESI and other heads. So have look…

Easily Prepare Pay slip and Payroll report in Tally

Press F11 (Company Feature)  > Accounting Features (F1) > Set both given options “Yes”

Maintain Payroll  >Yes
More than one Payroll / Cost Category > Yes
Now Save the information.

If you Want to maintain Employee Contact detail, Passport & visa detail then you have to Press F12 (Configuration)-> Payroll Configuration -> here Some option to related to employee. According to company you turn on and off the options.

1.   UNITS CREATION –
GOT – > Payroll Info –> Unit –> Create –>
Normally Two types of unit creation in case of payroll.
A.   Simple unit – e.g. Month, days, hour etc.
B.    Compound Units – Combination of two simple units. E.g.
Month – of ……Days (Give the total days of working)
Days  –  of ……..Hour (Give the total working hour in a day).

2.    ATTENDANCE/ PRODUCTION TYPES –
GOT –> Payroll Info –> Attendance / Production Type –> Create.
e.g.  Casual leave  –  Attendance/ leave with pay
Absent           –   Leave Without pay.
Overtime      –    Production.

3.     CREATIONS OF PAY HEADS –
(A)         Basic salary
Pay head type     – Earning for employee.
Under                         – Indirect expenses
Appear in pay slip- yes
Name of appear in pay slip – According to you.
Used For gratuity  – If you want to maintain gratuity then yes other wise no. always remember this feature only yes for employee earning total.
Calculate Type – select Flat rate or user defines value (normally).

(B)          DA
Calculate Type – select As Computed value (da is normally calculate on basic of employee.

(C)         Same Create HRA or other earning total.

(D)         PF
Pay head type – Deduction from employees.
Under – Current liabilities
Used For gratuity – No (It just yes on earning total).
Calculate Type – According to company.

(E)          ABSENT
Pay head type – deduction from employees.
Under – current assets
(Select here attendance type with calculate period. E.g. Days)

(F)          OVERTIME
Pay head type – earning for employee
Under – indirect expenses
(Select here overtime type)
(G)         Gratuity (If you want to maintain)
Pay head Type – Gratuity
(Fill the Gratuity day according to Income tax act)
Under – current liabilities.

4.    CREATIONS OF EMPLOYEE GROUP –
GOT – > Payroll info –>  Employee group –> Create . e.g. Accounts dept.

5.   CREATIONS OF EMPLOYEE –
GOT –> Payroll Info –> Employee –> Create
(Select here to group which belong employee)

6.   SALARY DETAIL MAINTAIN –
GOT –> Payroll Info –> Salary Detail –> Create
NOTE – If you create salary for a particular group then all the employee who is working under the group apply group salary detail.
But if you want to fill up fresh salary detail then select employee & fill up the detail under Start a fresh.

7.   CREATE A VOUCHER TYPE.
Name Of voucher – Anything which you want
Type of voucher – Payroll –
Name of class – which you want
Select here Cash Or Bank a/c if you directly pay the salary without due. But if you want to pass out due first then select salary payable Pay head, (Not Applicable Category).

8.   ATTENDANCE VOUCHER –
GO in the vouchers –> Press Ctrl + F5 (Fill the attendance of employee)

9.   PAYROLL VOUCHER CREATION –
Go in the vouchers –> press CTRL + F4 (Select salary payable voucher type. Again Press ALT + A (For calculate salary Automatic).

10. TO VIEW OR PRINT REPORT –> GOT –> Display –> Payroll Report –> Statement of Payroll – >Pay slip (Or see the other report).

NOTE – If you are selecting salary payable pay head in creation of voucher type then one more entry to pass in payment voucher.

Salary payable a/c……………Dr
To cash/Bank

Must Read: Pay online self assessment tax and advance tax

I hope you like this Payroll report in Tally guide from which you will be able to easily use Payroll report in Tally without any extra efforts. If feel any problem in this guide then please use comment box. Thanks to all.

32 Comments

  1. pls sir can you help me

    how to create single category under multiple same group.
    for example:-
    Deccan branch- 1) Admin 2) trainer 3) HR
    Sangavi Branch- 1) Admin 2) trainer 3) HR
    Pimpri Branch- 1) Admin 2) trainer 3) HR

  2. I followed the procedure but it doesn’t show basic pay amount. Hence all other calculations shows 0 value.

    1. Dear Smita,

      Thanks for your query.
      You have to check group of all pay heads and ledger accounts. You can also check date in which you have to done the entries. I hope your problem resolved. If not then you can send me backup file of your company in which you are facing the issue.

  3. Dear
    Amit Sharma

    I have issue in calculating PF contribution with Loss of pay (LOP cases).
    I am using the following formula.
    On Specific formula–>
    (Basic / (No.of days)Divide by attandance* (No.of days Present) Multipy by attandance.
    ex: 15000/31days*30days – for 1 day loss of pay
    Rs 14516 wil be net salary after deduction of LOP (Rs484)
    Rs 14516*12% = Rs 1742 is PF contribution.
    I tried to use this formula in tally erp 9 golden user version. but I couldn’t. Could you please solve this for me?

  4. I am a fresher so plz tell me about payroll salary and how does advance salary deduction from basic salary so plz tips on my email id and plz tell me any trick

  5. Dear Amit Sir,
    Thank you for your valuable information to us.

    Please confirm, How to pass PF paid entry in Tally ER9 as we deduct this every month from an employee’s salary. We should create PF ledger or we should create another pay head namely PF paid or what?

  6. SIR,
    AS PER YOUR GUIDANCE I AM SUCCESS. BUT SIR, NOT SUCCESS IN DEDUCTIONS. CAN I CREATE DEDUCTIONS VOUCHER. WHERE DEDUCTIONS SOME SIDE COMPUTE THE SALARY BASIC %.
    I.E, D.A. PROFESSIONAL TAX, P.F. E.S.I., GIVE ME SOME DETAILS.
    THANKS.

      1. Hi D.V. Durgadas

        There is no need to create deduction voucher. You just have to create Prof. Tax payhead during creating all the payheads and add all the payheads in the salary detail.

        To create prof. pay head you have to do this job:

        Payhead Name: Professional Tax
        Type: Employees Statutory Deduction
        Statutory Type: Professional Tax
        Under : Current Liabilities
        Calculation Type: As Computed Value
        Rs. 10000 value – 100
        Rs. 10000 to 15000 value – 150
        Rs. 15000 to —– value – 200

        Finally save the detail.
        Now after doing all entries you can view Prof. tax in your payslip.

    1. Dear Dyrgadasji

      Thank for writing…

      During creating the payslip if you are not able to view deduction detail in that case first you have to check all the deduction ledger types and sub grouping. For eg: If you want to show PF as a deduction then you have to check the PF payhead detail as per given:

      Pay Head Name: PF
      Pay head type – Deduction from employees.
      Under – Current liabilities
      Used For gratuity – No (It just yes on earning total).
      Calculate Type – According to company.

      Do this you will get success if you have any other query then please let me know.

      Thanks.

  7. thanks for the early notes but hey’ my salaries payable is negative, how do i correct this

  8. I am a Frasher but i will learning tally erp 9 & payroll salary statement i want same idea please send me rajesh k

  9. How to enable auto fill mode in Journal voucher?. in some Tally books I saw
    4.4 Processing PF Admin Expenses
    To process the PF Admin Charges, follow the steps given below:
    Go to Gateway of Tally > Accounting Vouchers
    1.Press F7 for Journal Voucher
    2.Press F2, specify the date as 30-04-2009 and press Enter
    3.Press Alt+A (Payroll Auto Fill) to prefill Employer’s Other Charges details
    Specify 1-4-2009 and 30-4-2009 in the From and To Date fields respectively
    Select Primary Cost Category in the Employee Category field
    Select All Items in the Employee/ Group field
    But I Can’t enable auto fill in journal voucher

  10. Please koi mujhe batayega ki tally main bank loan, interset paid with bank loan ka entry kaise hoga. Please its very urgent.

    1. Payment voucher PR F5
      Bank loan a/c Dr
      Interest a/c dr
      To casha/c
      Being bank loan and into. Paid
      According to real account s

    2. Accounting Vouchers–>Press F5 (Payment Voucher)

      Bank loan A/c…….Dr
      Interest A/c…………Dr
      To Bank A/c..
      Being bank loan paid with interest.

  11. How to enable auto fill mode in Journal voucher?. in some Tally books I saw
    4.4 Processing PF Admin Expenses
    To process the PF Admin Charges, follow the steps given below:
    Go to Gateway of Tally > Accounting Vouchers
    1.Press F7 for Journal Voucher
    2.Press F2, specify the date as 30-04-2009 and press Enter
    3.Press Alt+A (Payroll Auto Fill) to prefill Employer’s Other Charges details
    Specify 1-4-2009 and 30-4-2009 in the From and To Date fields respectively
    Select Primary Cost Category in the Employee Category field
    Select All Items in the Employee/ Group field
    But I Can't enable auto fill in journal voucher

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