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Payroll Salary Processing Guide

The document outlines a detailed payroll process involving multiple steps, including checking employee data, establishing key posts, pay fixation, increment updates, and payroll components management. Each step provides specific procedures for handling earnings, deductions, recoveries, and payment disbursal through various interfaces. It also includes notes on common mistakes and checks necessary before processing payments to ensure accuracy and compliance.

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sathaksuman03
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40 views13 pages

Payroll Salary Processing Guide

The document outlines a detailed payroll process involving multiple steps, including checking employee data, establishing key posts, pay fixation, increment updates, and payroll components management. Each step provides specific procedures for handling earnings, deductions, recoveries, and payment disbursal through various interfaces. It also includes notes on common mistakes and checks necessary before processing payments to ensure accuracy and compliance.

Uploaded by

sathaksuman03
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Detailed Payroll Process

Step 1: Check the Employees under DDO like Master Data in SAP.

Process:

1. Go to Payroll system card


2. Drawing and Disbursement
3. Other reports and Schedules> Departmental employees under DDO, GDS
under DDO, Pensioners under DDO.
4. Download the excel sheet and match. If any employee is not in the excel sheet
downloaded but in your last paysheet and still available in your employee
strength. Then you can check with the card “Know Your Employee” available
under Payroll system> Drawing and Disbursement> Know Your employee.
Check the Post ID and mapped DDO. If anything is found wrong then ask the
Divisional office to rectify the discrepancies through Post Management card.
5. Check the Basic Pay (Level and Index) of the employee and GPF subscription.

Step 2: Check the establishment key of Posts. It is important for charging the
correct salary head.

Process:

1. Go to Payroll system card


2. Drawing and Disbursement
3. Pay Configuration> Establishment Key Details. Go through the Establishment
Key List and write down the establishment key office wise:
a. 107: Postal Divisions
b. 112: Existing Employees
c. 119: Gramin Dak Sevak. Etc:
4. Establishment key mapping with Post ID, there one can change the DDO ID
with Post ID.

Step 3: Pay fixation: Only use this card if the employee salary is different from SAP,
or get the pay fixed in July.

Process:

1. Go to Payroll system card


2. Drawing and Disbursement
3. Pay Configuration> Pay Fixation. (in Maker ID: Accountant)
4. After Pay Fixation, Goto the DDO Login. Then Forward Pay Bill.
5. Confirm Pay Bill
Step 4: Increment date update: For updating increment date. Must ensure that all
employees increment date is updated. The date of Increment can be 01.07.2025 and
01.01.2026 is to be updated. Common file with covering both the dates can be
uploaded at once.

Process:

1. Go to Payroll system card


2. Drawing and Disbursement
3. Pay Configuration> Other Configuration. (in Maker ID: Accountant)
4. Select the option increment date update, Download the excel template. Fill the
required details and upload the same.
5. After uploading the file, Goto the DDO Login.
6. Payroll and Disbursement > Forward Pay transaction
7. Confirm Pay Transaction.

Note:

Increment date is only be 1st of the July or January. Leave period is to be updated
for change the increment date through the Leave Management system card.

Step 4: Increment Posting: After updating increment date. The increment posting
will be required.

Process:

1. Go to Payroll system card


2. Drawing and Disbursement
3. Pay Configuration> Other Configuration. (in Maker ID: Accountant)
4. Select the option increment posting update, Choose the option 01.07.2025
from the drop-down list. Then click on view and submit.
5. Goto the DDO Login.
6. Payroll and Disbursement > Forward Pay transaction
7. Confirm Pay Transaction.
Payroll Components update:

Prerequisite: Last Pay sheet for reference.

Earnings:

1. House Rent Allowance


2. Transport Allowance
3. Cycle Allowance (Other Allowance) and any other.

Process:

1. Go to Payroll system card


2. Drawing and Disbursement
3. Pay Configuration> DOP Earnings and Deduction. (in Maker ID:
Accountant)
4. Select the option Earning from Drop Down menu.
5. Choose the requisite option, Download the excel template. Fill the required
details and upload the same.
6. After uploading the file, Goto the DDO Login.
7. Payroll and Disbursement > Forward Pay transaction
8. Confirm Pay Transaction.

Note:

1. Different files for X, Y and Z cities.


2. Amount can be 0 for the components linked with Basic in the excel File (Auto
fetched as per city selected and Basic or Level-Index).
3. TPA for the employee who are handicapped get Double TPA automatically, If
any issue then Goto PIS (Personnel Information System)> Employee
Management Card, then Goto view and Update Employee Profile data and
update the Employee Handicap status. Further if the TPA did not get double,
then Go to Payroll system> Drawing and Disbursement > Paybill and other
Payment option> Update Employee Details> Choose the option Double TPA
(condition: the employee must be in Handicapped Quota).
Deductions:

1. CGHS

Process:

1. Go to Payroll system card


2. Drawing and Disbursement
3. Pay Configuration> DOP Earnings and Deduction. (in Maker ID:
Accountant)
4. Select the option Deduction from Drop Down menu.
5. Choose the requisite option, Download the excel template. Fill the required
details and upload the same.
6. After uploading the file, Goto the DDO Login.
7. Payroll and Disbursement > Forward Pay transaction
8. Confirm Pay Transaction.

Note:

Amount can be 0 in the excel file (Auto fetched by the system as per Basic or Level-
index).

2. GIS (Group Insurance Scheme)

Process:

1. Go to Payroll system card


2. Drawing and Disbursement
3. Pay Configuration> DOP Earnings and Deduction. (in Maker ID:
Accountant)
4. Select the option Deduction from Drop Down menu.
5. Choose the requisite option, Download the excel template. Fill the required
details and upload the same.
6. After uploading the file, Goto the DDO Login.
7. Payroll and Disbursement > Forward Pay transaction
8. Confirm Pay Transaction.

Note:

1. Different files for Different cadre.


2. Amount can be 0 in the excel file (Auto fetched by the system as per Cadre).
3. If an employee joins the department in the specific year, then choose the
option CGEGIS Fund (Var) and in the excel file amount will be variable.
3. Other Deductions and Third-Party Deductions

Licence Fee, Water fee etc, Union, Welfare etc.

Process:

1. Go to Payroll system card


2. Drawing and Disbursement
3. Pay Configuration> DOP Earnings and Deduction. (in Maker ID:
Accountant)
4. Select the option Deduction from Drop Down menu.
5. Choose the requisite option, Download the excel template. Fill the required
details and upload the same.
6. After uploading the file, Goto the DDO Login.
7. Payroll and Disbursement > Forward Pay transaction
8. Confirm Pay Transaction.

4. Other Recoveries

GPF Advance, HBA Principal, PC Advance etc.

Process:

1. Go to Payroll system card


2. Drawing and Disbursement
3. Pay Configuration> Initiate New Recovery. (in Maker ID: Accountant)
4. Select the option which is to be recovered from Drop Down menu.
5. Choose the requisite option, Download the excel template. Fill the required
details and upload the same.
6. After uploading the file, Goto the DDO Login.
7. Payroll and Disbursement > Forward Pay transaction
8. Confirm Pay Transaction.
5. Postal Life Insurance

Process:

1. Go to Payroll system card


2. Drawing and Disbursement
3. Pay Configuration> Other Configuration. (in Maker ID: Accountant)
4. Select the option PLI from Drop Down menu.
5. Download the excel template. Fill the required details and upload the same.
6. After uploading the file, Goto the DDO Login.
7. Payroll and Disbursement > Forward Pay transaction
8. Confirm Pay Transaction.

Note:

1. Separate files for First Year premium and second year premium
2. There are three components: Base Value, CGST and SGST. All are to be
include separately. The uploaded file auto consolidates the amount. (*Don’t
include the GST in amount)
3. End date is important factor here.

Mistake arises:

If any mistake happens in above, then process to rectify it:

Process:

1. Go to Payroll system card


2. Drawing and Disbursement
3. Pay Reports> Select Report Type> Choose the Pay component configured
option. (in DDO ID)
4. Choose the component.
5. Then click on any one of the options> Employee or Employee under DDO
6. Select the employee Name and click on view.
7. Then check the checkbox
8. Click on Disable option

Points to remember: Arrear will be paid through supplementary bill.

Process:

1. Go to Payroll system card


2. Drawing and Disbursement
3. Arrear Due Payment (in maker ID)
4. Fill the desired information and click on Submit.
5. Payment interface is available for both the DDOs types (CDDO and
NCDDO)
Components Auto fetch by the system:

1. Income Tax calculation: It will be automatic calculated by the system


2. GPF Subscription amount: auto from the SAP, if there is any change, then
employee can apply and DDO has to approve or Go to Payroll system> Drawing
and Disbursement > Paybill and other Payment option> Update Employee
Details> Choose the option GPF subscription update. GPF will be auto stopped
according to retirement date.
3. NPS or UPS deduction.

Note: For calculation of income tax: a file is to be uploaded for the amount
disbursed in SAP

Process:

1. Go to Payroll system card


2. Drawing and Disbursement
3. Pay Configuration> Other Configuration. (in Maker ID: Accountant)
4. Select the option Income and tax from other source from Drop Down
menu.
5. Download the excel template. Fill the required details and upload the same.
6. After uploading the file, Goto the DDO Login.
7. Payroll and Disbursement > Forward Pay transaction
8. Confirm Pay Transaction.

Note:

1. Only taxable components to be included in file. (LPC can be referred)


2. Exclude the TA on tour, GPF withdrawal or any other components from total
earnings which is non-taxable.
3. NPS employee contribution and NPS employer contribution is not to be
included in Total Earning.
4. Fiscal year will be 2025.
Pay Bill Generation:

Process:

1. Go to Payroll system card


2. Drawing and Disbursement
3. Click on the card “Generate Pay Bill”
4. Select DOP, GDS and Pension separately.
5. Select Pending Employees.
6. Select all the employee except those whose salary is not to be made or click
on the bulk Employee IDs and download the template. Then choose the file
and upload the excel and click on submit.
7. Pay bill is generated.

Then go to Pay Reports, and download the Paysheet/ Pay summary. Check the
components, if it is correct, then Go to DDO’s Login

Process:

1. Go to Payroll system card


2. Drawing and Disbursement
3. Click on the card “Confirm Pay Bill”
4. Select DOP, GDS and Pension separately.
5. Select Pending Employees.
6. Confirm the Pay Bill otherwise Reject it, (if any error observed in Pay
reports or any components which is likely to be changed).
Payment Interface

There are two options for Payment disbursal:


1. CQ Disbursal (cheque Disbursal)
2. POSB Disbursal

POSB Disbursal

1. Select the option POSB Disbursal.


2. Click on Pay Bill and Fetch
3. And there is option of Disburse, the payment will be auto credited in the
employee accounts within 2 hours or if any issue with account number or
name or bank type then it will comes under POSB Errors.
4. Change the bank account number or its type (reflected after some time
and one can check the change from Know your Employee card and after
successful updation of bank account number. Click on submit, salary
will be credit in employee’s account within 2 hours.

Cheque Interface:
After clicking on the request for Cheque Disbursal: there are three options:

Home, Others or Home and Others

1. Click on any of the option. And then approve, the cheque request will be
forwarded to Bank Module. There the treasure will prepares the cheque for
their respective Bank treasury. (Cheque DDO)
2. Click on any of the option. And then approve, the cheque request will be
forwarded to Treasury Module (Treasury operator). There the treasure will
process the cheque. Then official visits the cash office. There the entry shown
in the Bank module of Cash office. Prepares the cheque. Then again open its
treasury card and acknowledges the cheque. After depositing/ realizing the
cheques go to Cheque Dispose option and dispose the cheque. (Non Cheque
DDO)

Checks before running payment interface:

1. Bank type/ account number must be checked before processing salary. Key
points. (Employees under DDO list (page no. 01) can be referred.
a. POSB: Post office saving Bank, IFSC: IPOS0000001
b. Home: SBI, IFSC starts with SBIN or the mapped bank with the cash
office.
c. Others: Any other Bank or IPPB
2. Payment Interface:
a. A Single document prepares the single cheque. Multiple cheque
through single document option is not available as in SAP.
b. For separate Home Cheque and Other cheque while running the
payment interface choose the Home and other one by one. It will
prepare two documents. If Home and other option is selected in
payment interface then it will combine the Home and other bank
disbursement in one document/ transaction ID and single cheque can
be raised for that.
Third party Cheques:

After running the payment interface third party cheques are automatically available
for processing under payment interface.

Process:

1. Go to Payroll system card


2. Drawing and Disbursement
3. Click on the card “Payment interface”
4. Select option Request for CQ Disbursal.
5. Select the Out of account and click on the fetch button

6. Choose the option Home and Other and click on OK.

7. Following screen will be displayed.


8. Choose the option as per Bill type like all the Bill type transactions relates
to Welfare Fund “Selected in a one count” as shown in following image:

9. Submit CQ Drawal, it will create a single transaction id and single cheque


can be raised.
a. The cheque request will be forwarded to Bank Module. There the
treasure will prepares the cheque for the respective Third party.
(Cheque DDO).
b. The cheque request will be forwarded to Treasury Module (Treasury
operator). There the treasure will process the cheque. Then official
visits the cash office. There the entry shown in the Bank module of
Cash office. Prepares the cheque. Then again opens its treasury card
and acknowledges the cheque. After depositing/ realizing the
cheques go to Cheque Dispose option and dispose the cheque. (Non-
Cheque DDO)
Note: Don’t select all the bill types in one instance by clicking on the check
box corresponding to Box in the image, it will club all the third-party
deductions in single transaction ID and only single cheque is raised.

Common questions

Powered by AI

Automatic calculations in payroll components include income tax and GPF subscription deductions, which are system-generated based on employee details in SAP. These calculations streamline payroll processing and ensure consistency. However, incorrect automatic calculations can lead to underpayment or overpayment, necessitating manual checks and adjustments, which can be time-consuming and cause disputes .

The process manages financial implications by incorporating options to recover amounts like GPF advances and third-party payments. This is achieved through a structured system of selecting the necessary deduction options, downloading excel templates, and ensuring proper uploads before confirming transactions. It consolidates diverse financial obligations within the payroll system, thereby maintaining comprehensive financial management .

Integrating components like GIS and Postal Life Insurance into a single system allows for streamlined management of deductions and benefits. This reduces administrative overhead by centralizing updates, enhances accuracy in payroll processing, and ensures transparency for employees regarding their deductions and benefits. It also minimizes the scope for errors and enhances employee trust in the payroll system .

The cheque disbursal interface is essential for processing payments, particularly for employees whose bank details may change or who prefer cheque payments. It facilitates handling errors in account numbers or bank types by providing options to update and correct these details before proceeding with disbursal, which prevents payment failures. Without this interface, managing exceptions in bulk disbursal processes would be significantly more challenging .

The increment date update process involves updating the increment date for all employees, which must be either 1st July or 1st January. The process is completed by downloading an excel template, filling it with required details, and uploading it into the system. Incorrect updates can lead to discrepancies in payroll calculations, affecting the salary adjustments due to increments .

Checking the establishment key of posts is crucial as it determines the correct salary head to be charged. This involves mapping establishment keys such as those for Postal Divisions, Existing Employees, and Gramin Dak Sevak, with Post IDs. Accurate mapping ensures that funds are allocated correctly according to the employee's department and cadre, thereby avoiding errors in salary disbursement .

The POSB disbursal method enhances efficiency by automatically crediting payments into employees’ accounts within two hours, minimizing delays and manual intervention. However, limitations include potential issues with account or bank details, which could cause errors in payment delivery, requiring a separate correction step and prolonging disbursement for affected employees .

Updating employee profiles for Double TPA is necessary when discrepancies occur, particularly if the system doesn't automatically account for handicapped employees to receive a double Transport Allowance. This update is performed by accessing the Personnel Information System, viewing the Employee Management Card, and updating the employee's handicap status. This ensures fair compensation aligned with the employee's entitlements .

Error rectification involves reviewing pay components through specific pay reports and utilizing the disable option when incorrect entries are detected. This process is supported by a structured review of transactions before confirmation. Safeguards include process checks via the DDO login to verify submission accuracy before finalizing payroll, which helps prevent recurring errors through systematic verification and approval channels .

The pay bill generation process requires manual input when selecting pending employees and ensuring accurate template submissions, while system-driven automation processes include generating paysheets and confirming pay bills. This balance streamlines operations and minimizes errors. Disruptions, such as inaccurate manual input or system errors, could result in incorrect payrolls, affecting employee satisfaction and financial reconciliation processes .

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