Please go through the process below:
Step1:
Payroll Manager first have to enable Arrear Management from Payroll configuration wizard. To do same click on Setup Menu -> Configuration. Here edit the configuration and enable Arrear feature.
Once you enable the Arrear module it will start appearing in Pre-process Menu as 'Arrears-Incremental'.
Step2:
Open 'Arrears-Incremental' page and add a new Arrear definition in the system.
Clicking on Add new button will open you below page:
Here you need to provide below details:
1. Arrear Name: Provide a name for new Arrear definition.
2. Arrear Type : Currently Payroll Manager can select Arrear type as 'Incremental' only which is for incremented salary. Arrear type 'Adjustment' is currently not available to configure and this will be available in future release.
3. From/To Month: Select a period or duration for which this Arrear amount is going to be calculated.
4. Calculate Month: Increment of this month will be calculated as Arrear amount.
5. Pay Month: Select the month in which you want to pay Arrear amount.
6. Payment Mode: Select 'Include in Salary Register' if you want to pay arrear along with Pay Month's salary. Else select Cash, Cheque, NEFT etc if you wish to pay Arrear amount separately.
7. Round Off: Select round off option as per the wish.
8. Calculate PF/ESI/PT : Select desired Statutory option here on Arrear amount.
Step3:
After saving Arrear definition you need to assign employees to this new Arrear definition:
Here click on Assign Employee icon under action column. It will open a new window as shown below:
Click on 'Assign Employee' icon here and select the employees whom you want to apply Arrear Definition.
Step4:
Once you assign employees here, the Arrear list will show employee's outstanding Arrear amount. Payroll Manager needs to approve Arrear amount by clicking on 'Approve Arrear' button shown:
After approving employee's Arrear above, it will start appearing in employee's salary of month you selected in Step2 as Pay Month.
Step5:
Please Note: - If you do not want to pay Arrear along with Employee's Salary or want to pay Arrear amount separately, then you must go to the Arrear definition (Step2) and change payment mode as Cash, Cheque, Bank Transfer, NEFT etc.
After changing 'Payment Mode' go to Pre-Process Menu -> Arrear Payouts.
Here Select the 'Issue Mode' and Employees shown under 'Pending Payouts', and click on 'Issue' button.