Organizing and managing all your employees' payslips can be challenging. That’s why the Odoo Payroll module is designed to process work entries and generate employee payslips for you.
This handy module helps to prevent issues or conflicts when validating work entries and even accommodates country-specific locations to ensure that payslips comply with local regulations and tax requirements. To top it all off, it does all this while allowing salary assignments too.
This article will showcase the use of Odoo’s payslips to boost your company’s financial clarity.
How it Works
When you enter the Payroll module, you can find the Payslips tab. By clicking it, you can access a drop-down menu with three sections: To Pay, All Payslips, and Batches.
To Pay
By clicking on this option, you can access a list of payslips that haven’t been paid yet.
Every aspect and stage of each payslip is displayed here:
- Its Reference
- The Employee
- The Batch it belongs to
- Your Company name
- The Basic Wage
- The Gross Wage
- The Net Wage
- The Payslip Status
Odoo automatically calculates the net wage value by deducting the taxes applicable to the gross wage.
In Odoo, you can easily manage and check deductions directly from an employee’s payslip by selecting the Salary Computation option. This will obviously vary depending on the fiscal localization used. Simply make sure that the fiscal localization corresponds with your company's location.
After making sure everything is in place, you can pay the selected payslip by clicking on Pay in the top left corner.
By doing this, the now-paid payslip will not appear on the To Pay page anymore. To revisit the payslip, you can access the All Payslips page or the Batches page if the payslip is a part of one.
All Payslips (Employee Payslips)
On this page, all your employees’ payslips will be displayed regardless of status, showing them in a convenient and organized format (by batch) in a default nested list view.
- Draft: The payslip has been created, but you can still edit it since the amounts haven’t been calculated yet.
- Waiting: All the amounts have been calculated, and the salary details can be found on the Salary Computation tab.
- Done: The payslip is ready to be paid since it’s already calculated.
- Paid: The payslip has been paid.
How to Create a Payslip
It’s possible to create a payslip by accessing the To Pay page or the Employee Payslip page. Simply click on New on the top left corner, and it will open a blank template ready for you to fill out with all the necessary information.
Select or type the name of the desired employee. Make sure that the employee has a valid contract and is inserted into the database. If not, you will need to create a new employee in Odoo’s Employees’ module. Only then can you process any payslip created for that employee.
Below the Employee’s name field, you will find four other fields that need to be populated:
- Contract: This field presents the contracts available for the selected employee.
- Batch: If you want to add this payslip to a batch, select the corresponding batch from the drop-down menu.
- Structure: The corresponding salary structure associated with the selected contract will be showcased.
- Period: This field will auto-populate with the first and last day of the current month, but if needed, it can be changed.
Only the Batch field is not required; the other three need to be populated so that the payslip can be created. The Contract and Structure fields will appear auto-populated if this information is on the selected employee’s form.
After filling in every required field, you can now check the employees' work entries in the Worked Days area, including the Number of Days Worked, Hours, and each respective Amount.
In the section below, you'll find the Other Inputs area, where you can enter additional factors that affect the payslip, such as deductions, reimbursements, and expenses.
Click the Compute Sheet button at the top left of your screen to perform all calculations. This will make your payslip change its status from Draft to Waiting. If the employee payslip has a negative balance, a Has Negative Net to Report checkbox will appear and must be selected.
You can also check the Other Info tab, which displays the Close Date. This is the date on which the employee will receive the payment. You will also notice the Date Account, which is the date the payslip should be posted. There’s also the Salary Journal, and this field will be auto-populated without an option to be changed since it’s linked to the Accounting module.
Making Modifications
If you need to make any modifications, first click the Cancel button. Next, click the Set to Draft button. Make the desired changes and click the Compute Sheet button again. The changes will be reflected in the Worked Days and Salary Computation tabs.
After checking everything, click the Create Draft Entry button on the top left corner to mark the payslip as Done.
Batches
On the Batches page, you will see the different batches of payslips that have been created. By creating batches, you can organize and manage the payments of multiple payslips in one go. The creation of batches allows you to handle the payroll for various employees within a specific period much more efficiently!
Create a batch by simply clicking on New on the top left corner. This will open a blank template.
Now all you need to do is give a name to the batch and select the period to which the batch applies.
Warrant Payslips
To pay commissions to your employees, you can create Warrant Payslips with Odoo. You can generate it directly from the Payslip Batches page. To do that, simply select the desired batches using the box on the left of each batch. After selecting them, click on the Generate Warrant Payslips button. This new window will appear:
Once everything is properly entered, click on the Generate Payslips button to create the warrant payslips in a batch. To complete the payment, simply follow the same process as the usual batch.
Conclusion
The Odoo payroll module offers a comprehensive solution for managing your employees' payslips efficiently. It streamlines the entire payroll process, ensuring compliance with local regulations while providing clarity for both employers and employees. By being able to create, manage, and pay payslips in batches as well as individually, Odoo simplifies salary processing and enhances operational accuracy.
With features like the Salary Computation option, you can easily review deductions and understand how wages are calculated. The system’s structured approach, from the To Pay list to the All Payslips and Batch Management options, allows for organized payroll administration.
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