# Production Wage

<p class="doc-lead">Employee Production Wage records earnings from shop-floor production work — <b>piece-rate</b> (<code>chargeType</code> 0) or <b>hourly-rate</b> (<code>chargeType</code> 2) wages. Most entries are auto-created when a <a href="#/production/production-voucher">Production Voucher</a> is approved. Approved wages aggregate under payment category <b>Wages Payable (6)</b> on <a href="#/payroll/pay-run">Pay Run</a> and post <b>DR EXP27 / CR 57</b>.</p>

<div class="doc-toc">
<p class="doc-toc-title">On this page</p>
<div class="doc-toc-section">
<span class="doc-toc-group-title">Getting started</span>
<div class="doc-toc-links">
<a href="#/payroll/production-wage?id=overview">Overview &amp; List View</a>
<a href="#/payroll/production-wage?id=quick-start">Quick Start</a>
</div>
</div>
<div class="doc-toc-section">
<span class="doc-toc-group-title">Form reference</span>
<div class="doc-toc-links">
<a href="#/payroll/production-wage?id=header-fields">Header Fields</a>
<a href="#/payroll/production-wage?id=wage-types">Wage Types</a>
</div>
</div>
<div class="doc-toc-section">
<span class="doc-toc-group-title">More</span>
<div class="doc-toc-links">
<a href="#/payroll/production-wage?id=voucher-flow">Production Voucher Flow</a>
<a href="#/payroll/production-wage?id=actions-status">Actions &amp; Status</a>
<a href="#/payroll/production-wage?id=pay-run">Connection with Pay Run</a>
<a href="#/payroll/production-wage?id=accounting">Accounting</a>
<a href="#/payroll/production-wage?id=example">Worked Example</a>
<a href="#/payroll/production-wage?id=best-practices">Best Practices</a>
<a href="#/payroll/production-wage?id=faq">FAQ</a>
<a href="#/payroll/production-wage?id=related">Related &amp; Videos</a>
</div>
</div>
</div>

<hr class="doc-section-divider">

<h2 id="overview">Overview &amp; List View</h2>

Go to <b>Payroll → Employee Production Wage</b>. The list shows every production wage entry with employee, item, quantity or hours, rate, amount, and status.

<img src="payroll/images/production-wage-list.webp" alt="Production Wage List" loading="lazy">

<b>List columns</b>

| **Column** | **Shows** |
|------------|-----------|
| Id | Wage record reference. |
| Date | Date of the production work. |
| Emp. Code | Employee code. |
| Employee | Employee who performed the work. |
| Item | Product or material worked on. |
| Unit | Unit of measure. |
| Type | Wage type — Piece Rate or Hourly Rate. |
| Quantity | Units produced (piece rate). |
| Hours | Hours worked (hourly rate). |
| Rate per unit | Rate per unit or hour. |
| Amount | Total earnings. |
| Status | Current status. |

<b>Quick filter tabs</b>

| **Tab** | **Shows** |
|---------|-----------|
| Default | All except cancelled. |
| Approved | Approved, unpaid wages. |
| Draft | Saved but not approved. |
| Closed | Settled through pay run. |
| Cancelled | Cancelled records. |

<b>Advanced Filters</b>

Id, Employee, Item, Production Voucher Id, Date, Status, and Created date.

<b>List row actions</b>

| **Action** | **Available when status is** |
|------------|------------------------------|
| Edit | Draft, For Revisal |
| Delete | Draft, For Revisal |
| View | All statuses |

<b>Primary buttons</b>

| **Button** | **Description** |
|------------|-----------------|
| New | Create a single manual wage entry. |
| Multi Wage | Create multiple wage lines for different employees in one save. |

<hr class="doc-section-divider">

<h2 id="quick-start">Quick Start — Manual Production Wage</h2>

Most wages are auto-created from production vouchers. Use manual entry only for adjustments or non-voucher work.

<h3>1. Navigate</h3>
Go to <b>Payroll → Employee Production Wage</b> and click <b>New</b>.

<img src="payroll/images/prdctn-wage-new.webp" alt="New Production Wage" loading="lazy">

<h3>2. Fill in details</h3>
<ul>
<li>Set <b>Date *</b> and <b>Employee *</b>.</li>
<li>Optionally select <b>Item</b> and <b>Unit</b>.</li>
<li>Choose <b>Wage Type</b>: <b>Piece Rate</b> (0) or <b>Hourly Rate</b> (2).</li>
<li>For piece rate: enter <b>Quantity</b> and <b>Rate Per Unit</b>. Amount = quantity × rate.</li>
<li>For hourly rate: enter <b>Hours</b> and <b>Hourly Rate</b> (from salary configuration). Amount = hours × rate.</li>
</ul>

<h3>3. Save</h3>
<ul>
<li><b>Save</b> — keeps status Draft.</li>
<li><b>Save And Approve</b> — approves in one step.</li>
</ul>

<h3>Multi Wage entry</h3>

<img src="payroll/images/multiwage.webp" alt="Multi Production Wage" loading="lazy">

Click <b>Multi Wage</b> to enter wages for multiple employees on the same date with a shared wage type. Each line requires employee, quantity/hours, and rate.

<hr class="doc-section-divider">

<h2 id="header-fields">Header Fields Reference</h2>

| **Field** | **Description** |
|-----------|-----------------|
| Date * | Date of the production work. Required. |
| Employee * | Employee who performed the work. Required. |
| Item | Product or material produced. Optional on manual entry; auto-filled from voucher. |
| Unit | Unit of measure. Defaults from item. |
| Wage Type | Piece Rate (0) or Hourly Rate (2). |
| Quantity | Units produced. Required for piece rate. |
| Rate Per Unit | Payment per unit. Required for piece rate. |
| Hours | Hours worked. Required for hourly rate. |
| Hourly Rate | Rate per hour from <a href="#/payroll/salary-configuration">Salary Configuration</a>. Required for hourly rate. |
| Amount | Total earnings. Auto-calculated. |
| Branch | Branch tag. |
| Production Voucher | Linked voucher (read-only on auto-created entries). |

<hr class="doc-section-divider">

<h2 id="wage-types">Wage Types — chargeType 0 vs 2</h2>

| **chargeType** | **Name** | **Rate source** | **Quantity field** | **Amount formula** |
|----------------|----------|-----------------|--------------------|--------------------|
| <b>0</b> | Piece Rate | <a href="#/production/bill-of-materials">Bill Of Materials</a> piece rate (editable on voucher) | Quantity (units produced) | Quantity × Rate Per Unit |
| <b>2</b> | Hourly Rate | Employee <b>Hourly Rate</b> from <a href="#/payroll/salary-configuration">Salary Configuration</a> | Hours worked | Hours × Hourly Rate |

<p><b>Example — piece rate:</b> 200 shirts × ₹15/unit = ₹3,000</p>
<p><b>Example — hourly rate:</b> 7.5 hours × ₹120/hr = ₹900</p>

<hr class="doc-section-divider">

<h2 id="voucher-flow">Production Voucher Flow (Auto-Creation)</h2>

The standard workflow does not require manual wage entry:

<ol>
<li>Enable <b>Enable Piece-Rate/Hourly-Rate Wages in Production</b> in <a href="#/payroll/payroll-settings">Payroll Settings</a>.</li>
<li>Set <b>Wage Type</b> and <b>Piece Rate</b> on the <a href="#/production/bill-of-materials">Bill Of Materials</a>.</li>
<li>Create and approve a <a href="#/production/production-voucher">Production Voucher</a> with <b>Employee Wages</b> lines.</li>
<li>On approve, the system creates one Employee Production Wage per wage line with status <b>Approved</b>.</li>
<li>Include wages in <a href="#/payroll/pay-run">Pay Run</a> for the pay period.</li>
</ol>

<img src="payroll/images/prdctn-new.webp" alt="Production Wage View" loading="lazy">

Auto-created entries show the linked Production Voucher and cannot be edited for core fields (employee, item, quantity). Cancel the voucher instead (blocked if wage is already Closed via pay run).

<hr class="doc-section-divider">

<h2 id="actions-status">Actions &amp; Status</h2>

<h3>View toolbar actions</h3>

| **Action** | **Description** | **Available when status is** |
|------------|-----------------|------------------------------|
| Approve | Approves the wage entry. | Draft, For Revisal |
| Edit | Opens for editing. | Draft, For Revisal |
| Delete | Permanently removes. | Draft, For Revisal |
| Clone | Creates a copy. | All (if permitted) |
| Print | Prints the entry. | All |

<h3>More menu (⋮) actions</h3>

| **Action** | **Description** | **Available when status is** |
|------------|-----------------|------------------------------|
| Cancel | Cancels the entry. | Approved, For Revisal, Closed |
| Master Update | Updates selected header fields. | Approved, Closed |
| Add/Update Note | Adds or edits notes. | All |
| Print | Prints the entry. | All |

<h3>Statuses</h3>

| **Status** | **Description** |
|------------|-----------------|
| Draft | Saved but not approved. |
| Approved | Finalized. Unpaid. Eligible for pay run. |
| For Revisal | Sent back for correction. |
| Cancelled | Cancelled. |
| Closed | Included in an approved pay run. |

<hr class="doc-section-divider">

<h2 id="pay-run">Connection with Pay Run</h2>

Approved production wages in the pay period are <b>aggregated</b> into a single payment line under category <b>Wages Payable (6)</b> on the employee's pay run.

| **Step** | **What happens** |
|----------|------------------|
| Voucher approved / wage approved | Wage status → Approved (unpaid). |
| Pay run draft | All approved wages in date range aggregate as one Wages Payable (6) line. |
| Pay run approved | All linked wages → <b>Closed</b>. |
| Pay run cancelled | Wages revert to Approved. |
| Voucher cancelled | Blocked if any linked wage is already Closed. |

<b>Aggregation:</b> Individual wage records remain in the Production Wage list for detail, but the pay run shows one combined Wages Payable line per employee per period.

<hr class="doc-section-divider">

<h2 id="accounting">Accounting</h2>

On pay-run approve, the aggregated Wages Payable (6) line posts:

<ul>
<li><b>DR</b> EXP27 (Wages Payable expense account)</li>
<li><b>CR</b> account 57 Salary Payable — employee sub-ledger</li>
</ul>

Individual production wage records do not post journals on their own — accounting happens through the pay run. Cancel on pay run reverses the journal and reopens wage records.

<hr class="doc-section-divider">

<h2 id="example">Worked Example — Piece-Rate Production</h2>

<p><b>Setup:</b> BOM for Shirt has piece rate ₹15/unit. Employee Anil produces 200 shirts on a Production Voucher approved on 18 Mar.</p>

<b>Auto-created wage</b>
<ul>
<li>chargeType: 0 (Piece Rate)</li>
<li>Quantity: 200, Rate: ₹15, Amount: ₹3,000</li>
<li>Status: Approved</li>
</ul>

<b>March pay run for Anil</b>
<ul>
<li>Salary Payables: Basic ₹18,000 + <b>Wages Payable (6) ₹3,000</b> (aggregated from production wages)</li>
<li>Journal on approve: DR EXP27 ₹3,000 / CR 57 ₹3,000</li>
</ul>

On pay-run approve: production wage → Closed.

<hr class="doc-section-divider">

<h2 id="best-practices">Best Practices</h2>

<ul>
<li>Enable production wages in <a href="#/payroll/payroll-settings">Payroll Settings</a> and set BOM piece rates before shop-floor go-live.</li>
<li>Set <b>Hourly Rate</b> in <a href="#/payroll/salary-configuration">Salary Configuration</a> for employees on hourly production wages.</li>
<li>Prefer voucher-driven wages over manual entry — manual entries are for corrections only.</li>
<li>Run <a href="#/payroll/reports/employee-piece-rate-report">Employee Piece Rate Report</a> to verify wages before pay-run approval.</li>
<li>Do not cancel a production voucher after its wages are Closed on a pay run.</li>
</ul>

<hr class="doc-section-divider">

<h2 id="faq">FAQ</h2>

<b>What is chargeType 0 vs 2?</b><br>
0 = Piece Rate (pay per unit produced). 2 = Hourly Rate (pay per hour worked).

<b>Do I need to enter production wages manually?</b><br>
No. Approving a Production Voucher with employee wage lines auto-creates wage records. Manual entry is for adjustments.

<b>How do wages appear on the pay run?</b><br>
All approved wages in the period aggregate into one <b>Wages Payable (6)</b> payment line per employee.

<b>What accounts are posted?</b><br>
On pay-run approve: <b>DR EXP27 / CR 57</b> for the aggregated wages amount.

<b>Can I pay production wages outside pay run?</b><br>
The standard path is pay run. Cash advance voucher payment for production wages is not enabled in the current UI.

<b>What happens if I cancel the production voucher?</b><br>
Linked employee production wage records should be cancelled or adjusted before pay run pulls them — verify wage status on <a href="#/payroll/production-wage">Production Wage</a> list.

<b>Can piece rate and hourly wages mix on one voucher?</b><br>
Yes. BOM lines can use piece rate while other lines use hourly rate — each creates separate wage records aggregated under Wages Payable on pay run.

<b>Why is wage status still Approved after pay run?</b><br>
Status moves to Paid only when the pay run containing the wage is approved — draft pay runs do not mark wages paid.

<b>Can I manually adjust wage quantity or amount?</b><br>
Manual wage entry is for corrections. Prefer adjusting production voucher output before approve when possible for audit trail.

<hr class="doc-section-divider">

<h2 id="related">Related Topics &amp; Videos</h2>

<b>Related documentation</b>
<ul>
<li><a href="#/payroll/pay-run-dashboard">Pay Run Dashboard</a> — Pending Production Wages opens this list with status Approved.</li>
<li><a href="#/payroll/pay-run">Pay Run</a> — aggregates and settles production wages.</li>
<li><a href="#/production/production-voucher">Production Voucher</a> — auto-creates wage records on approve.</li>
<li><a href="#/production/bill-of-materials">Bill Of Materials</a> — piece rate and wage type setup.</li>
<li><a href="#/payroll/salary-configuration">Salary Configuration</a> — hourly rate for hourly production wages.</li>
<li><a href="#/payroll/reports/employee-piece-rate-report">Employee Piece Rate Report</a> — period-wise wage breakdown.</li>
</ul>