TutorialKart.comCreate Simple Payroll Units in Tally.ERP 9
A payroll unit in Tally defines the unit of measurement used to calculate attendance-based or production-based pay heads. For example, an overtime pay head may use Hours, while an attendance-based salary calculation may use Days.
Tally payroll units are classified into two types:
- Simple Payroll Units: Individual units such as Hours, Days, Weeks, Pieces, Boxes, or Numbers.
- Compound Payroll Units: Units created by combining two simple units, such as Hours and Minutes.
This tutorial explains how to create a simple payroll unit in Tally.ERP 9. The menu names and screenshots are based on Tally.ERP 9; the navigation may be different in TallyPrime.
When to Use a Simple Payroll Unit in Tally
Create a simple payroll unit when a pay head or attendance type can be measured with one independent unit. Common examples include:
- Hours for overtime or hourly wages
- Days for attendance, leave, or daily wages
- Weeks for weekly payroll calculations
- Nos or Pieces for production-based wages
- Boxes for work measured by completed packages
Steps to Create a Simple Payroll Unit in Tally.ERP 9
Step 1: From the Gateway of Tally, locate the Masters section and select Payroll Info.
Step 2: In the Payroll Info menu, select Units (Work). This option is used to create and manage the units required for payroll calculations.
Step 3: Under Units (Work), select Create to open the Unit Creation screen.
Step 4: Enter the required information in the Unit Creation screen.
- Type: Select Simple.
- Symbol: Enter a short symbol that will identify the unit, such as Hrs, Days, or Nos.
- Formal Name: Enter the complete name of the payroll unit, such as Hours, Days, or Numbers.
- Number of Decimal Places: Enter the number of decimal places required for recording the unit.
Step 5: Review the details, press Enter to accept the screen, and select Yes when Tally asks you to confirm the entry. The simple payroll unit is then available for use with attendance types and pay heads.
Choosing the Symbol and Decimal Places for a Payroll Unit
The symbol should be short, clear, and easy to recognize in payroll reports. For example, use Hrs as the symbol and Hours as the formal name.
The number of decimal places determines whether fractional quantities can be entered:
- Use 0 when only whole units are allowed, such as completed boxes or pieces.
- Use 1 or 2 when fractional units may be recorded, such as 7.5 hours of work.
Choose the decimal setting according to the organisation’s attendance and wage-calculation policy. Avoid adding unnecessary decimal places because they can make payroll entries and reports harder to review.
Example of a Simple Payroll Unit for Overtime
To record overtime by hours, create the unit with the following values:
- Type: Simple
- Symbol: Hrs
- Formal Name: Hours
- Number of Decimal Places: 2
This setup allows entries such as 8 hours, 7.5 hours, or 2.25 hours, depending on the attendance information entered for an employee.
Simple Payroll Units and Compound Payroll Units
| Payroll unit type | Purpose | Example |
|---|---|---|
| Simple | Measures payroll with one independent unit | Hours, Days, Pieces |
| Compound | Combines two simple units for more detailed measurement | Hours and Minutes |
Use a simple unit when one measurement is sufficient. Create a compound unit only when the payroll process requires two related units.
Common Problems While Creating Payroll Units in Tally
- Payroll Info is not displayed: Confirm that payroll is enabled in the company features before attempting to create payroll masters.
- An unsuitable unit type is selected: Choose Simple for a single measurement such as Hours or Days.
- The symbol and formal name are identical or unclear: Use a short symbol and a descriptive formal name, such as Hrs and Hours.
- Fractional quantities cannot be entered: Check whether the number of decimal places was set to 0.
- The unit is not available during payroll configuration: Confirm that the Unit Creation screen was accepted and saved successfully.
Frequently Asked Questions About Simple Payroll Units in Tally
What is a simple payroll unit in Tally?
A simple payroll unit is a single unit of measurement used for payroll calculations. Examples include Hours, Days, Weeks, Pieces, and Numbers.
Why are decimal places required in a payroll unit?
Decimal places allow Tally to record fractional quantities. For example, a unit configured with decimal places can record 7.5 hours instead of allowing only whole hours.
Can one simple payroll unit be used with multiple pay heads?
Yes. A suitable unit, such as Hours, can be used with multiple payroll masters when those calculations rely on the same measurement.
What is the difference between the symbol and formal name?
The symbol is the abbreviated form displayed in entries and reports, while the formal name describes the unit fully. For example, Hrs may be the symbol and Hours the formal name.
Editorial Checklist for Tally Simple Payroll Unit Setup
- Confirm that the instructions refer to Tally.ERP 9 and match the displayed screenshots.
- Verify that the navigation follows Gateway of Tally → Payroll Info → Units (Work) → Create.
- Check that the unit type is set to Simple for individual measurements.
- Ensure the symbol, formal name, and decimal-place examples are consistent.
- Confirm that no step suggests using a compound unit for a single measurement.