Hello, in this post we will learn the process of Arrears calculation in Saral PayPack software.
An arrears is a process of paying unpaid salary to the employee at a later date. This can be due to a delayed increment process or a wrong accounting of LOP or difference in salary amount.
In Saral PayPack, Arrears is defined and calculated based on the need of the employer.
Firstly, in order to enable the Arrears module in Saral PayPack, go to Option Settings under Initial Settings.
Here, select on Features tab and enable Arrears option.
In order to work on the module, go to Arrears under Salary Transactions menu.
The Arrears Calculation window will be displayed. Let us now see the Arrears calculation based on various scenarios.
Note: Before doing the Arrears calculation, you need to make sure to update the incremented salary in the relevant month.
Case 1:
When Arrears has to be paid for the incremented amount for the whole month
For example, The increment is applicable from Apr-2019 but paid in the month of Jun-2019. Then the incremented amount for the months of APR & MAY is calculated in the arrears module and paid in the month of JUN.
This calculation is done in Saral PayPack as below;
Now, create a new Arrears type by clicking on New and providing the below details under Initial Settings;
- Pay Month: Month in which the Arrears will be paid.
- Arrears Name: Name of the Arrears for identification
- Arrears Type: Type of calculation required for Arrears. Here, select Automated for automatic calculation of monthly arrears.
- Arrears From / Arrears To: Starting and ending month for Arrears calculation.
- Arrears Ref.: Month w.r.t which the Arrears has to be computed. i.e., Month in which salary is increased which has to be considered for the calculation.
- Mode of Payment: The mode in which the Arrears will be paid to the employee. i.e., with the salary or separately in cash/cheque mode.
Next, after entering the required details, click on Advanced Settings;
Here, enable the respective fields required for calculation and click on Save to save the details.
Now, select the created Arrears and click on Computation tab. Here, click on Add. Emp and select the employees from the Filter window for whom the Arrears have to be given.
The arrears amount will be calculated for all the selected employees (if available) and displayed on the screen, component by component.
The same can be viewed in the Salary editor after computation.
Also, it can be viewed in the Payslip of the employee as a separate component if the Mode of payment is selected as Paid in Salary with the option of As Salary Component.
Note: If the selection is made as Merged with Salary Component, then the Arrear amount will not be displayed as a separate component instead will be added to normal salary components.
Case 2:
When Arrears has to be paid for LOP applied in the earlier month.
For e.g. A LOP was applied in the previous month, by mistake. Now, the pay for the LOP has to be made in the current month.
Create a new Arrears type by clicking on New and providing the below details under Initial Settings;
- Pay Month: Month in which the Arrears will be paid.
- Arrears Name: Name of the Arrears for identification
- Arrears Type: Type of calculation required for Arrears. Here, select Automated, enable of Days and enter the no. of days for which payment has to be calculated.
- Arrears For: Month in which the LOP was marked.
- Mode of Payment: The mode in which the Arrears will be paid to the employee. I.e. with the salary or separately in cash/cheque mode.
After entering the required details, click on Advanced Settings;
Here, enable the respective fields required for calculation and click on Save to save the details.
Now, select the created Arrears and click on Computation tab. Here, click on Add. Emp and select the employees from the Filter window for whom the Arrears have to be given.
The arrears amount will be calculated for the no. of days mentioned for all the selected employees (if available) and displayed on the screen, component by component.
The amount can be viewed in Salary Editor and Payslip as explained in the previous case.
Case 3:
When Arrears has to be paid for LOP applied in the earlier month with increment.
For e.g. A LOP was applied in the previous month, by mistake. Also, the previous month had an Arrears for a pay increment. Now, the pay for the LOP has to be made in the current month according to the incremented amount.
In simple, this is a partial combination of both Case 1 & Case 2
Create a new Arrears type by clicking on New and providing the below details under Initial Settings;
- Pay Month: Month in which the Arrears will be paid.
- Arrears Name: Name of the Arrears for identification
- Arrears Type: Type of calculation required for Arrears. Here, select Automated, enable of Days and enter the no. of days for which pay has to be calculated. Then enable the Difference check box to indicate the pay to be calculated based on incremented amount.
- Arrears For: Month in which the LOP was marked.
- Arrears Ref.: Month w.r.t which the Arrears has to be computed. i.e., Month in which salary is increased which has to be considered for the calculation.
- Mode of Payment: The mode in which the Arrears will be paid to the employee. i.e., with the salary or separately in cash/cheque mode.
After entering the required details, click on Advanced Settings;
Here, enable the respective fields required for calculation and click on Save in order to save the details.
Now, select the created Arrears and click on Computation tab. Here, click on Add. Emp and select the employees from the Filter window for whom the Arrears have to be given.
The arrears amount will be calculated for the no. of days (with a difference) mentioned for all the selected employees (if available) and displayed on the screen, component by component.
You can view the amount in Salary Editor and also in Payslip as explained in the earlier case.
In the above-explained cases, Arrears is auto computed by the software. If the Arrears has to be manually processed, then that can also be done in Saral PayPack.
Case 4:
When Arrears to be paid is manually computed and entered in the software.
This can be entered salary component-by-component or in a lump sum.
Create a new Arrears type by clicking on New and providing the below details under Initial Settings;
- Pay Month: Month in which the Arrears will be paid.
- Arrears Name: Name of the Arrears for identification
- Arrears Type: Type of calculation required for Arrears. Here, select Manual and select the required type. i.e., if the arrears amount is given salary head-by-by then select Salary Head wise else select Lumpsum.
- Arrears From/To: Starting and ending month for which Arrears is to be given.
- Mode of Payment: The mode in which the Arrears will be paid to the employee. i.e., with the salary or separately in cash/cheque mode.
After entering the required details, click on Advanced Settings;
Here, enable the respective fields required for calculation and click on Save in order to save the details.
Now, select the created Arrears and click on Computation tab. Here, click on Add. Emp and select the employees from the Filter window for whom the Arrears have to be given.
In the displayed window, enter the Arrears to be provided for each of the employees either salary head wise or in a lump sum, as selected in Settings.
The amount can be viewed in Salary Editor and also in the Payslip as explained in the earlier case.
You can take a report on arrears given by clicking on the Report button. So, these are the different types of Arrears calculation modes in Saral PayPack.
You can also learn about Arrears in general here:
This ends the post on Arrears calculation in Saral PayPack. Let us know your opinion by commenting below.