Whether you are SMEs or large enterprises, managing human resources and payroll is one of the important activities to maintain the sustainability of the organization. Payroll management includes calculating employee salaries, taxes, and other deductions. It ensures that employees are paid accurately and on time while complying with legal and tax regulations. Odoo Payroll is a payroll management system to help businesses create and manage the payroll more effectively. In this article, we will show you about Odoo Payroll from features, benefits to how to create your own payslip.
Key Features of Odoo Payroll: Can Make Your System Smoother
Odoo is an open-source ERP software with various modules, which aims to support businesses manage business activities. Odoo Payroll is an application to manage employees’ payrolls accurately. Let’s browse several main features of Odoo Payroll:
Payroll Dashboard
Odoo Payroll has an intuitive and user-friendly interface, which is easy for users to use and onboard. You can get an instant overview of payment batches, employer costs, and trends on the payroll dashboard. Additionally, it is a dynamic dashboard so that it constantly provides real-time data or updates. This results in gaining comprehensive changes in the businesses.
Leaves and Work Entry Type
With Odoo Payroll, you can set up leave requests, pay calculations, and other rules for both paid and unpaid leaves. Additionally, you not only set a range of leave reasons but also designate a permit approver in the system. It is easy for businesses to calculate paid and unpaid leaves in the payslips within the interlinked Time Off and Payroll modules.
Automatic Payslip Generation
Instead of tracking and generating payslips manually on Excel, Odoo Payroll allows businesses to create payslips automatically. It is able to sync with other Odoo applications to automatically generate accurate payslips. It depends on your requirements and rules when setting up the Payroll application.
Enhanced Compliance Management
Odoo Payroll keeps up with labor laws and tax regulations. Thus, the payroll system focuses on providing advanced compliance management features. With automatic updates and proactive compliance checks, businesses can stay on top of legal requirements.
Personalized Payslip
Businesses can flexibly customize the payslips which adapt to their compensation structure, including benefits, bonuses, and other incentives. Furthermore, they also tailor the payslips based on their brandings and needs. It enhances the personality as well as business culture.
Data Analytics for Insights
Odoo Payroll offers data analytics tools which allows businesses to extract actionable insights from payroll data. You can use it to identify trends, optimize compensation strategies, and make informed decisions related to workforce management. Moreover, it also improves the evaluation of the employees’ efficiency compared to the salary and benefits.
Integration with HR and Benefits Systems
It is certain that Odoo Payroll can integrate seamlessly with HR and benefits, which streamlines workforce management. Through this integration, employee data from information, benefits to payroll will be synchronized and consistent across multiple processes to mitigate errors and improve efficiency.
Take A Look At The Advantages Of Odoo Payroll
Odoo Payroll has a range of features which benefits to manage payroll in all businesses. It simplifies the payroll process with user-friendly and efficient application instead of the complex process. Here are several reasons why businesses need to use Odoo Payroll.
Seamless Integration
As mentioned above, Odoo Payroll can flexibly integrate with other Odoo applications in Odoo App Store like Odoo HR and Accounting. The integration brings data synchronization, consistency, and smoothness between departments. You can minimize errors in every payroll and save time. You don't need to spend much time collecting the data and handling them, and then create a payslip manually.
Employee Information Management
With Odoo ERP, you can maintain a centralized database of employee information from personal information to employment history. Making sure that the database is comprehensive and available to process payroll. The Odoo Payroll will calculate salaries based on the fields provided.
Automated Salary Calculations
Compared to manual calculation with more error, automated calculation of Odoo Payroll will improve the calculation results. It not only saves time but also reduces errors. You just set up defined rules and parameters so Odo can calculate automatically.
Customizable Deductions and Benefits
It is obvious that each business has its own set of deductions and benefits from healthcare, bonuses to other allowances. Those parts have an impact on the salary of each employee. Therefore, businesses can customize payroll components based on their specific requirements on Odoo Payroll.
Employee Self-Service
To ensure transparency, Odoo Payroll provides an Employee Self-Service portal, which allows them to access payroll information, view payslips, and manage personal information. It not only benefits employees but also reduces the administrative burden on HR departments. Of course, each payslip will be secured and only accessible to that employee with a unique password, which ensures employee privacy and company regulations.
Reporting and Analytics
Odoo Payroll provides smart reporting and analytics tools with an amount of pre-built templates or customization. Businesses can get valuable insights into payroll costs. Additionally, reports help businesses analyze trends, identify cost-saving opportunities, and plan their finances better.
Time and Attendance Integration
One of the ways to simplify the payroll process is to integrate Odoo Payroll with Odoo with Time and Attendance module. Check in and check out times will be recorded and payroll will be calculated based on the time automatically. Making sure that the timekeeping records are accurate, reducing the possibility of errors in payroll calculations.
You should also read this article: Ultimate Guide to Mastering Odoo PLM for the Manufacturing Industry
How To Create A Payslip in Odoo Payroll
Payslips are created and approved by managers and employees. Employees are then paid by check or direct deposit, depending on how their employee profile is configured. In Odoo Payroll, you can create a new payslip from the Payslips to Pay page or the Employee Payslips page. Create a new payslip by clicking the New button in the top left corner. A blank payslip form will be loaded, where the required payslip information can be entered.
Step 1: Payslip Form
There are several fields which you need to fill on the blank payslip form. On the blank payslip form, several fields are required. Most required fields will auto-populate after selecting an employee. Here some information on the payslip form:
- Employee: Type in the name of an employee or select from the drop-down list in this field. (Required field)
- Period: The first day through the last day of the current month automatically fills the Period fields by default. You can change the date by clicking the first day in the Period field to display the popup calendar. (Required field)
- Contract: Select employee contract with drop down menu. Only the corresponding contracts available for the selected employee will appear as options. (Required field)
- Batch: With the drop-down menu in this field, you can choose the batch of payslips.
- Structure: Select the salary structure type with the drop-down menu. If no employee and/or contract has been selected, all available Structures will appear in the list. After selecting an employee and/or contract, any unavailable Structures set for that employee and/or contract will not appear. (Required field)
Step 2: Worked days & inputs tab
In this step, you need to type or choose the Worked days and inputs, following up:
- Worked Days: Type, Description, Number of Days, Number of Hours, and Amount are automatically populated based on what is entered for the Period, Contract, and Structure fields of the payslip form.
- Other Inputs: You can enter additional inputs that affect the payslip in this section such as deductions, reimbursements, and expenses.
Step 3: Salary Computation Tab
In this tab you need to select the payroll calculation method and adjust the negative amount.
- Payroll: The Payroll tab is automatically populated after clicking the Spreadsheet button. Then the salary, deductions, taxes, etc. will be displayed for the entry.
- Have a net amount to report: The contract will only be displayed if the employee has a net amount for this paycheck.
Step 4: Other Info Tab
In the next step, you can fill in other information with other info tab. Here are several information you can type in:
- Payslip Name
- Company
- Close Date
- Date Account
- Accounting Entry
- Add an Internal Note
Step 5: Process of New Payslip
Once you have entered all the necessary information on the payslip, click the Calculate Payroll button. Once done, all the information on the payslip will be saved and the Calculate Payroll tab will automatically populate, based on the information on the employee's contract or timesheet.
If you need to make any changes, first click the Cancel button, then click the Set to Draft button. Make any desired changes, then click the Calculate Payroll button again and the changes will be updated. Once all the information on the payslip form is correct, click the Create Draft Entry button to create the payslip. The chat will automatically update to show the email sent to the employee, along with a PDF copy of the payslip.
To print the payslip, click the Print button. To cancel the payslip, click the Cancel button.
Next, the payment must be sent to the employee. To do this, click on the Register Payment button. Doing so will bring up a pop-up form, where the desired Bank Journal to which the payment will be made must be selected from the drop-down menu. Then, click the Confirm button to confirm the journal and return to the payslip.
If you need to cancel or refund a payment, click the Cancel or Refund button respectively, located in the upper left corner of the screen.
Conclusion
Odoo Payroll module plays a vital role in managing payroll easily for businesses. It provides a wide range of advanced features with highlighted benefits, which allows businesses to automate processes. Making sure that Odoo Payroll is always compliant and offers powerful customized solutions. Thus, businesses have the flexibility to customize this application, adapting to their needs..
Contact us to create your own Odoo Payroll, or in case you need any Odoo services custom consultation for your business!
