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How to Configure Salary Structure in Odoo
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How to Configure Salary Structure in Odoo
In this blog article we will cover how to configure salary structure in Odoo ERP software. Salary paid by organization with respect to the exchange of services by the employees. There are various component that create a salary which is also called as salary components. The salary may vary in amount and managing payroll at a company with various employees is never a task that can be accomplished. For the convenient payment of the salary of the employees in a firm, an efficient Salary Structure is inevitable. Odoo payroll module, without any hassle, one can set up various robust salary structures for every employee and thereby managing the company payrolls more efficiently & effectively.
There are various components of a salary which company follows such as Basic Salary, Allowances, Tax deducted at source, HRA – Human resource Allowance and so on based on country to country and company to company. Let see how you can configure salary structure or payroll in odoo ERP software. For a reference the screenshots is of Odoo 13 although for the older and the latest version of Odoo ERP somehow the process remains the same.
Configuration for Salary structure
First to configure a salary structure, we have to enable the developer mode.
Go to, the ‘Main Settings’ and scroll to the bottom of the window.
Below the Developer Tools section, click on the ‘Activate the developer mode’.
Now, Configure the Salary Category.
Payroll -> Configuration and select the ‘Rules Category’ and click ‘CREATE’.
The above is the form to create a new salary rule category. There are three fields to be filled there;
Name: Category’s name.
Code: for easy access during salary computation.
Parent: The parent category to which this new category belongs to.
After entering the necessary details ‘SAVE’ the form. A new Salary rule category has been created.
Now, the salary rule must be created.
Configuration -> Salary Rules
Name: Name of the rule.
Category: The category under which this rule comes.
Code: For easy access while net salary computation.
Active: change the activity status of the rule by selecting hide/activate.
Appear on Payslip: Once selected the rule will appear on the payslip.
Condition-based on: It determines the performance of the category in each individual salary computation. Three conditions are available here.
Always True: This option ensures the availability of the rule in each individual salary computation.
Range: once selected there are some sub-options to be selected.
Employee’s wage can be seen in the contract, under the salary information tab.
Python expression: Some comment lines can be seen here which helps to create python conditions. The equation footed on the result is provided by Odoo as default.
Whenever a python condition is created, the values in the object can be accessed.
Computation
The three methods of salary computation are;
Fixed amount
A Fixed amount is a method where you offer salary at a fixed rate.
Quantity: The quantity provided is mentioned here.
Fixed amount: The amount provided is mentioned here.
In the above-given example, the Quantity is given as ‘1.0’, and the Fixed Amount as ‘6000’
Quantity: The quantity provided is mentioned here.
Fixed amount: The amount provided is mentioned here.
In the above-given example, the Quantity is given as ‘1.0’, and the Fixed Amount as ‘6000’
Percentage based on: The variable required to compute the percentage is provided here.
Percentage: The figures for percentage is provided here.
In the above-given example, the ‘Percentage Based on’ is ‘contract.wage’, ‘Quantity’ is ‘1.0’ and ‘Percentage’ is 45. So the computation is 45% of the contract.wage.
Python Code
In this case, the Python code is the basis of computation.
In this example, the result is equal to the ‘contract.wage-0.10’ and the result thus is multiple contracts.wage and 0.10.
Salary Structure
Go to, Configuration -> Salary Structure and click on the ‘CREATE’ button.
Name: The name of the Salary Structure.
Parent: When a salary structure is created as a subsidiary to an already existing salary structure, the parent salary structure should be mentioned here.
Company: The company to which this salary structure applies should be mentioned here.
In the bottom, you can see an ‘add a line’ field under the Salary Rules, here one can add rules.
Salary structures for any businesses are a necessary part of effective management. It helps your company to ensure that the pay levels are externally competitive and internally fair. Salary structures also allow companies to reward performance and development while controlling cost. Odoo ERP module is a well-designed solution where salary structures can be created easily.
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