# Payroll Settings

Payroll Settings control workspace-wide payroll behavior — attendance linkage, production wages, leave salary, and commission. For per-day salary calculation, LOP rules, and payslip display, see the detailed guide at Payroll Settings (Configuration).

On this page

Overview Key Settings Production Wage Flow Related Masters Related

Overview

Go to Payroll → Settings → Payroll Settings. These settings apply to every pay run in the workspace. Salary calculation method, attendance rules, and production wage options are documented in depth on the Payroll Settings (Configuration) page — use that page when configuring divisors, pro-rata vs deduction mode, holidays during LOP, and commission on sale invoices. Payroll Settings

Key Settings

| **Setting** | **Description** | |-------------|-----------------| | Consider Attendance in Salary Calculation | Pulls Daily Attendance and leave data into pay runs. When off, day counts are entered manually. | | Enable Piece-Rate/Hourly-Rate Wages in Production | Turns on wage tracking on Production BOMs and Vouchers. Required before production wage lines appear. | | Show Leave Salary Days in Pay Run | Shows leave encashment days on the pay-run form (uses payment category Leave Salary). | | Show Extra Payable Days in Pay Run | Shows extra payable days for incentive or special pay. | | Default Category for Extra Pay | Payment category for extra payable days. Only categories with Applies to extra payable days enabled are listed. |

Salary calculation fields (Per-Day Salary Calculation Method, Salary Calculation Style, fixed days, calendar mode, mid-month join, holidays during LOP, pay-run view labels, and sale-invoice commission) are covered in Payroll Settings (Configuration) — including the combination matrix, net pay formula, and leave salary / extra pay examples.

Production Wage Flow

When Enable Piece-Rate/Hourly-Rate Wages in Production is on:

  1. BOM — Wage Type (Piece Rate or Hourly Rate) and Piece Rate appear on Bill of Materials.
  2. Production Voucher — Employee Wages table appears. Lines copy from the BOM and scale to net output quantity.
  3. On voucher approve — each wage line creates an Employee Production Wage record (status Approved / unpaid).
  4. Pay Run — approved production wages in the pay period are pulled into the employee's pay run as a production-wage payment line.
  5. On pay run approve — linked wages move to Paid status.

Wage types

| **Type** | **How amount is calculated** | **Rate source** | |----------|------------------------------|-----------------| | Piece Rate | Quantity produced × Rate per unit | BOM Piece Rate | | Hourly Rate | Hours worked × Hourly rate | Salary Configuration on the employee's Payroll Group |

Verify wages before pay run using Production Wage and Employee Piece Rate Report.

FAQ

Where are salary divisors and LOP rules configured?
On Payroll Settings (Configuration) — this hub page covers production wages and links to calculation detail.

Must I enable production wages before BOM wage fields appear?
Yes. Turn on Enable Piece-Rate/Hourly-Rate Wages in Production here first, then configure BOM and production vouchers.

What happens if attendance is disabled for payroll?
Pay runs use manually entered working days, LOP, and paid leave on the header — no pull from Daily Attendance.

Where is hourly rate for production set?
On Salary Configuration per payroll group or employee — not on this settings form.

What is Default Category for Extra Pay?
Payment category used when Show Extra Payable Days is enabled on pay runs — only categories with Applies to extra payable days appear in the dropdown.

Do these settings apply per branch?
Company-wide for calculation flags. Branch-specific commission limits are on Payroll Settings Config commission section.

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