HRM › Allowances and Deductions defines every line that can appear on a payslip — house rent, conveyance, medical, provident fund, tax, and so on. Each entry has a name, a Type (allowance or deduction), and four switches.
The four switches, and what each one decides
- Is This Basic — marks the line as the basic pay. Only one line should carry this; it is the figure the others are usually calculated against.
- Bonusable — include this line when working out a bonus
- Deductible — this line may be reduced (for example by unpaid absences)
- Incrementable — an increment applies to this line
These switches are why an increment can raise basic pay without touching a fixed conveyance allowance, and why a bonus can be worked out on some lines and not others.
Steps
- Go to HRM › Allowances and Deductions
- Add each line with its name and type
- Tick Is This Basic on your basic pay line, once
- Set Bonusable, Deductible and Incrementable to match your school's policy
- Put the amounts on each employee's plan in HRM › Salary › Create Salary Plan
No amounts here
This screen defines the lines, not the figures. What an individual employee is paid against each line is set on their salary plan.
Common confusion
"An increment raised the wrong things." Check Incrementable on each line — anything ticked will move.
"Absence deducted from an allowance we did not expect." That line is ticked Deductible.
"Two lines are marked basic." Leave exactly one. The calculations that reference basic pay cannot tell which you meant.
Watch
📺 ALLOWANCE & DEDUCTION SETUP BEFORE CREATE SALARY PLAN — https://youtu.be/wUjLlK-mJac