documentation/content/applications/hr/payroll.rst

:show-content:
:show-toc:

=======
Payroll
=======

Odoo *Payroll* is used to process work entries and create payslips for employees, including both
regular pay and commission. Payroll works in conjunction with other Odoo apps, such as *Employees*,
*Timesheets*, *Time Off*, and *Attendances*.

The *Payroll* app helps ensure there are no issues or conflicts when validating work entries,
handles country-specific localizations to ensure that payslips follow local rules and taxes, and
allows for salary assignments. Payroll configuration is critical to ensure accurate and timely
processing of payslips.

Settings
========

To access the *Settings*, go to :menuselection:`Payroll --> Configuration --> Settings`. Whether or
not payslips are posted in accounting, and whether SEPA payments are created, is selected here.

The :guilabel:`Settings` screen is where localization settings are configured. *Localizations* are
country-specific settings pre-configured in Odoo at the creation of the database, and account for
all taxes, fees, and allowances for that particular country. The :guilabel:`Localization` section of
the :guilabel:`Settings` includes a detailed view of all benefits provided to employees.

.. image:: payroll/payroll-settings.png
   :align: center
   :alt: Settings available for Payroll.

Any country-specific localizations are set up in the :guilabel:`Localization` section of the
:guilabel:`Settings` screen. All localization items are pre-populated when the country is specified
during the creation of the database. It is not recommended to alter the localization settings unless
specifically required.

.. note::
   Odoo can handle a multi-company configuration. This is generally done when there is a main
   company or office location, such as a headquarters, and there are other offices/branches around
   the country or globe, that fall under that main company or headquarters. In Odoo, each company,
   including the headquarters, would be setup as their own company/branch using the multi-company
   method.

   Each individual company can have a different localization setting configured for that specific
   company, since company locations can vary and be located anywhere in the world, where rules and
   laws differ. For more information on companies refer to :doc:`this documentation
   <../general/companies>` on setting up companies.

.. _payroll/work-entries-config:

Work entries
============

A *work entry* is an individual record on an employee's timesheet. Work entries can be configured to
account for all types of work and time off, such as :guilabel:`Attendance`, :guilabel:`Sick Time
Off`, :guilabel:`Training`, or :guilabel:`Public Holiday`.

.. seealso::
   :doc:`Manage work entries <payroll/work_entries>`

Work entry types
----------------

When creating a work entry in the *Payroll* application, or when an employee enters information in
the *Timesheets* application, a :guilabel:`Work Entry Type` needs to be selected. The list of
:guilabel:`Work Entry Types` is automatically created based on localization settings set in the
database.

To view the current work entry types available, go to :menuselection:`Payroll --> Configuration -->
Work Entries --> Work Entry Types`.

Each work entry type has a code to aid in the creation of payslips, and to ensure all taxes and fees
are correctly entered.

.. image:: payroll/work-entry-types.png
   :align: center
   :alt: List of all work entry types currently available for use, with the payroll code and color.

New work entry type
~~~~~~~~~~~~~~~~~~~

To create a new :guilabel:`Work Entry Type`, click the :guilabel:`New` button, and enter the
information for the following sections on the form.

General information section
***************************

- :guilabel:`Work Entry Type Name`: The name should be short and descriptive, such as `Sick Time` or
  `Public Holiday`.
- :guilabel:`Payroll Code`: This code appears with the work entry type on timesheets and payslips.
  Since the code is used in conjunction with the *Accounting* application, it is advised to check
  with the accounting department for a code to use.
- :guilabel:`DMFA code`: This code is used to identify :abbr:`DMFA (De Multifunctionele Aangifte)`
  entries on a corresponding DMFA report. The DMFA report is a quarterly report that Belgian-based
  companies are required to submit for social security reporting purposes. This report states the
  work done by the employees during the quarter, as well as the salaries paid to those employees.
- :guilabel:`External Code`: This code is used for exporting data to a third-party payroll service.
  Check with the third-party being used in order to determine the :guilabel:`External Code` to enter
  for the new work entry type.
- :guilabel:`SDWorx code`: This code is only for companies that use SDWorx, a payroll service
  provider.
- :guilabel:`Color`: Select a color for the particular work entry type.

Display in payslip section
**************************

- :guilabel:`Rounding`: The rounding method selected determines how quantities on timesheet entries
  are displayed on the payslip.

  - :guilabel:`No Rounding`: A timesheet entry is not modified.
  - :guilabel:`Half Day`: A timesheet entry is rounded to the closest half day amount.
  - :guilabel:`Day`: A timesheet entry is rounded to the closest full day amount.

.. example::
   If the working time is set to an 8-hour work day (40-hour work week), and an employee enters a
   time of 5.5 hours on a timesheet, and :guilabel:`Rounding` is set to :guilabel:`No Rounding`, the
   entry remains 5.5 hours. If :guilabel:`Rounding` is set to :guilabel:`Half Day`, the entry is
   changed to 4 hours. If it is set to :guilabel:`Day`, it is changed to 8 hours.

Unpaid section
**************

- :guilabel:`Unpaid in Structures Types`: If the work entry is for work that is not paid, specify
  which pay structure the unpaid work entry applies to from the drop-down menu. Some situations
  where work would be logged on a timesheet but no compensation given would be for unpaid
  internships, unpaid training, or volunteer work.

Valid for advantages section
****************************

- :guilabel:`Meal Voucher`: If the work entry should count towards a meal voucher, check the box.
- :guilabel:`Representation Fees`: If the work entry should count towards representation fees, check
  the box.
- :guilabel:`Private Car Reimbursement`: If the work entry should count towards a private car
  reimbursement, check the box.

Time off options section
************************

- :guilabel:`Time Off`: Check this box if the work entry type can be selected for a time off request
  or entry in the *Time Off* application. If :guilabel:`Time Off` is checked, a :guilabel:`Time Off
  Type` field appears. This field has a drop-down menu to select the specific type of time off, such
  as `Paid Time Off`, `Sick Time Off`, or `Extra Hours` for example. A new type of time off can be
  entered in the field if the listed types of time off in the drop-down menu do not display the type
  of time off needed.
- :guilabel:`Keep Time Off Right`: This is for Belgian-specific companies only, and will not appear
  for other localizations. Check this box if the work entry is for time off that will affect the
  time off benefits for the following year. Workers are given time off each year according to the
  government, and in some cases, time-off taken during a specific time period can affect how much
  time off the employee will receive or accrue the following year.

Reporting section
*****************

- :guilabel:`Unforeseen Absence`: If the work entry should be visible on the unforeseen absences
  report, check this box.

.. image:: payroll/new-work-entry.png
   :align: center
   :alt: New work entry type form with all fields to be filled in.

.. _payroll/working-times:

Working schedules
-----------------

To view the currently configured working schedules, go to :menuselection:`Payroll --> Configuration
--> Work Entries --> Working Schedules`. The working schedules that are available for an employee's
contracts and work entries are found in this list.

Working schedules are company-specific. Each company must identify each type of working schedule
they use.

.. Example::
   An Odoo database containing multiple companies that use a standard 40-hour work week needs to
   have a separate working schedule entry for each company that uses the 40-hour standard work week.

   A database with five companies that all use a standard 40-hour work week needs to have five
   separate 40-hour working schedules configured.

.. image:: payroll/working-schedules.png
   :align: center
   :alt: All working schedules available to use currently set up in the database for the company.

New working schedule
~~~~~~~~~~~~~~~~~~~~

To create a new working schedule, click the :guilabel:`New` button, and enter the information on the
form.

The fields are auto-populated for a regular 40-hour work week but can be modified. First, change the
name of the working time by modifying the text in the :guilabel:`Name` field. Next, make any
adjustments to the days and times that apply to the new working time.

In the :guilabel:`Working Hours` tab, modify the :guilabel:`Day of Week`, :guilabel:`Day Period`,
and :guilabel:`Work Entry Type` selections by clicking on the drop-down menus in each column and
making the desired selection. The :guilabel:`Work From` and :guilabel:`Work To` columns are modified
by typing in the time.

.. note::
   The :guilabel:`Work From` and :guilabel:`Work To` times must be in a 24-hour format. For example,
   `2:00 PM` would be entered as `14:00`.

If the working time should be in a two-week configuration, click the :guilabel:`Switch to 2 weeks
calendar` button in the top left. This creates entries for an :guilabel:`Even week` and an
:guilabel:`Odd week`.

.. image:: payroll/new-working-schedule.png
   :align: center
   :alt: New working schedule form.

Salary
======

.. _payroll/structure-types:

Structure types
---------------

In Odoo, an employee's payslip is based on *structures* and *structure types*, which both affect how
an employee enters timesheets. Each structure type is an individual set of rules for processing a
timesheet entry, which consists of different structures nested within it. Structure types define how
often an employee gets paid, the working hours, and if wages are based on a salary (fixed) or how
many hours the employee worked (varied).

For example, a structure type could be `Employee`, and that structure type could have two different
structures in it: a `Regular Pay` structure which includes all the separate rules for processing
regular pay, as well as a structure for an `End of Year Bonus` which includes the rules only for the
end of year bonus. Both the `Regular Pay` structure and `End of Year Bonus` structure are structures
within the `Employee` structure type.

The different structure types can be seen by going to :menuselection:`Payroll --> Configuration -->
Salary --> Structure Types`.

There are two default structure types configured in Odoo: *Employee* and *Worker*. Typically,
*Employee* is used for salaried employees, which is why the wage type is *Monthly Fixed Wage*, and
*Worker* is typically used for employees paid by the hour, so the wage type is *Hourly Wage*.

.. image:: payroll/structure-type.png
   :align: center
   :alt: List of all currently configured structure types available to use.

New structure type
------------------

To make a new structure type, click the :guilabel:`New` button and a structure type form appears.
Enter the information in the fields. Most fields are pre-populated, but all the fields can be
modified.

- :guilabel:`Structure Type`: Enter the name for the new structure type, such as 'Employee' or
  'Worker'.
- :guilabel:`Country`: Select the country that the new structure type applies to from the drop-down
  menu.
- :guilabel:`Wage Type`: Select what type of wage the new structure type will use, either
  :guilabel:`Monthly Fixed Wage` or :guilabel:`Hourly Wage`. If the wage type is going to be used
  for salaried employees who receive the same wage every pay period, select :guilabel:`Monthly Fixed
  Wage`. If the wage type is going to be used for employees who receive wages based on how many
  hours they worked during a pay period, select :guilabel:`Hourly Wage`.
- :guilabel:`Default Scheduled Pay`: Select the typical pay schedule for the new structure type from
  the drop-down menu. Options are :guilabel:`Monthly`, :guilabel:`Quarterly`,
  :guilabel:`Semi-annually`, :guilabel:`Annually`, :guilabel:`Weekly`, :guilabel:`Bi-weekly`,
  :guilabel:`Bi-monthly`. This indicates how often this type of structure type is paid out.
- :guilabel:`Default Working Hours`: Select the default working hours for the new structure type
  from the drop-down menu. All available working hours for the currently selected company appear in
  the drop-down menu. The default working hours that are pre-configured in Odoo is the
  :guilabel:`Standard 40 hours/week` option. If the needed working hours do not appear in the list,
  a :ref:`new set of default working hours can be created <new-default-working-hours>`.
- :guilabel:`Regular Pay Structure`: Type in the name for the regular pay structure.
- :guilabel:`Default Work Entry Type`: Select the default type of work entry the new structure type
  will fall under from the drop-down menu. Options include :guilabel:`Attendance`,
  :guilabel:`Overtime Hours`, :guilabel:`Generic Time Off`, :guilabel:`Compensatory Time Off`,
  :guilabel:`Home Working`, :guilabel:`Unpaid`, :guilabel:`Sick Time Off`, :guilabel:`Paid Time
  Off`, and :guilabel:`Out Of Contract`.

.. image:: payroll/new-structure.png
   :align: center
   :alt: New structure type form to fill out when creating a new structure type.

.. _new-default-working-hours:

New default working hours
~~~~~~~~~~~~~~~~~~~~~~~~~

To make new default working hours, type the name for the new working hours in the :guilabel:`Default
Working Hours` field on the new structure type form. Click :guilabel:`Create and edit`. A default
working hours form will pop up. The default working hours form has two sections, a general
information section and a tab listing out all the individual working hours by day and time. When the
form is filled out, click :guilabel:`Save & Close`.

- :guilabel:`Name`: Type in the name for the new default working hours. This should be descriptive
  and clear to understand, such as `Standard 20 Hours/Week`.
- :guilabel:`Company`: Select the company that can use these new default working hours from the
  drop-down menu. Keep in mind, working hours are company-specific and cannot be shard between
  companies. Each company needs to have their own working hours set.
- :guilabel:`Average Hour Per Day`: The average hours per day field will be auto-populated based on
  the working hours configured in the *Working Hours* tab. This entry affects resource planning,
  since the average daily hours affect what resources can be used, and in what quantity, per work
  day.
- :guilabel:`Timezone`: Select the timezone that the new default working hours will be used for from
  the drop-down menu.
- :guilabel:`Company Full Time`: Enter the number of hours per week an employee would need to work
  in order to be considered a full-time employee. Typically, this is approximately 40 hours, and
  this number affects what types of benefits an employee can receive based on their employment
  status (full-time vs part-time).
- :guilabel:`Work Time rate`: This percentage is auto-generated based on the entry for the
  :guilabel:`Company Full Time` and the working hours configured in the *Working Hours* tab. This
  number should be between `0.00%` and `100%`, so if the percentage is above `100%`, it is an
  indication that the working times and/or :guilabel:`Company Full Time` hours need adjustment.
- :guilabel:`Working Hours` Tab: This tab is where each day's specific working hours are listed.
  When a new default working hour form  is created, the working hours tab is pre-populated with a
  default 40-hour week, with each day divided into three timed sections. Every day has morning
  (8:00-12:00), lunch (12:00-13:00), and evening (13:00-17:00) hours configured using a 24 hour time
  format. To adjust any of these hours, click on the specific field to adjust, and make the
  adjustment using the drop-down menus, or in the specific case of the times, type in the desired
  time.

  .. note::
     If the working hours are not consistent each week, and the hours are on a bi-weekly schedule
     instead, click the :guilabel:`Switch to 2 week calendar` button at the top of the new default
     working hours form. This will change the working hours tab to display two weeks of working
     times that can be adjusted.

Structures
----------

*Salary structures* are the different ways an employee gets paid within a specific *structure*, and
are specifically defined by various rules.

The amount of structures a company needs for each structure type depends on how many different ways
employees are paid, and how their pay is calculated. For example, a common structure that could be
useful to add may be a `Bonus`.

To view all the various structures for each structure type, go to :menuselection:`Payroll -->
Configuration --> Salary --> Structures`.

Each :ref:`structure type <payroll/structure-types>` lists the various structures associated with
it. Each structure contains a set of rules that define it.

.. image:: payroll/salary-structure.png
   :align: center
   :alt: All available salary structures.

Click on a structure to view its :guilabel:`Salary Rules`. These rules are what calculate the
payslip for the employee.

.. image:: payroll/structure-regular-pay-rules.png
   :align: center
   :alt: Salary structure details for Regular Pay, listing all the specific Salary Rules.

Rules
-----

Each structure has a set of *salary rules* to follow for accounting purposes. These rules are
configured by the localization, and affect actions in the *Accounting* application, so modifications
to the default rules, or the creation of new rules, should only be done when necessary.

To view all the rules, go to :menuselection:`Payroll app --> Configuration --> Salary --> Rules`.
Click on a structure (such as :guilabel:`Regular Pay`) to view all the rules.

To make a new rule, click :guilabel:`New`. A new rule form appears. Enter the information in the
fields.

The required fields for a rule are:

- :guilabel:`Name`: Enter a name for the rule.
- :guilabel:`Category`: Select a category the rule applies to from the drop-down menu, or enter a
  new one.
- :guilabel:`Code`: Enter a code to be used for this new rule. It is recommended to coordinate with
  the accounting department for a code to use as this will affect accounting reports and payroll
  processing.
- :guilabel:`Salary Structure`: Select a salary structure the rule applies to from the drop-down
  menu, or enter a new one.
- :guilabel:`Condition Based on`: In the :guilabel:`General` tab, select from the drop-down menu
  whether the rule is :guilabel:`Always True` (always applies), a :guilabel:`Range` (applies to a
  specific range, which is entered beneath the selection), or a :guilabel:`Python Expression` (the
  code is entered beneath the selection).
- :guilabel:`Amount Type`: In the :guilabel:`General` tab, select from the drop-down menu whether
  the amount is a :guilabel:`Fixed Amount`, a :guilabel:`Percentage (%)`, or a :guilabel:`Python
  Code`. Depending on what is selected, the fixed amount, percentage, or Python code needs to be
  entered next.

.. image:: payroll/new-rule.png
   :align: center
   :alt: Enter the information for the new rule on the new rule form.

Rule parameters
---------------

.. note::
   Currently, the :guilabel:`Rule Parameters` feature found inside the :menuselection:`Payroll app
   --> Configuration --> Salary --> Rule Parameters` menu is still in development and only serves a
   specific use case for Belgian markets. The documentation will be updated when this section has
   matured to more markets.

Other input types
-----------------

When creating payslips, it is sometimes necessary to add other entries for specific circumstances,
like expenses, reimbursements, or deductions. These other inputs can be configured by going to
:menuselection:`Payroll --> Configuration --> Salary --> Other Input Types`.

.. image:: payroll/other-input.png
   :align: center
   :alt: A list of other input types for payroll that can be selected when creating a new entry for
         a payslip.

To create a new input type, click the :guilabel:`New` button. Enter the :guilabel:`Description`, the
:guilabel:`Code`, and which structure it applies to in the :guilabel:`Availability in Structure`
field.

.. important::
   The :guilabel:`Code` is used in the salary rules to compute payslips. If the
   :guilabel:`Availability in Structure` field is left blank, it indicates that the new input type
   is available for all payslips and is not exclusive to a specific structure.

.. image:: payroll/input-type-new.png
   :align: center
   :alt: Create a new Input Type.

Salary package configurator
===========================

The various options under the :guilabel:`Salary Package Configurator` section of the
:menuselection:`Payroll --> Configuration --> Salary Package Configurator` menu all affect an
employee's potential salary. These sections (:guilabel:`Advantages`, :guilabel:`Personal Info`,
:guilabel:`Resume`, and :guilabel:`Offers`) specify what benefits can be offered to an employee in
their salary package.

Depending on what information an employee enters (such as deductions, dependents, etc.), their
salary is adjusted accordingly. When an applicant applies for a job on the company website, the
sections under :guilabel:`Salary Package Configurator` directly affect what the applicant sees, and
what is populated as the applicant enters information.

Advantages
----------

When offering potential employees a position, there can be certain *advantages* or benefits set in
Odoo in addition to the salary to make an offer more appealing (such as extra time off, the use of a
company car, reimbursement for a phone or internet, etc.).

To see the advantages, go to :menuselection:`Payroll --> Configuration --> Salary Package
Configurator --> Advantages`. Advantages are grouped by :guilabel:`Structure type`, and the
advantage listed for a particular structure type is only available for that specific structure.

.. image:: payroll/advantages.png
   :align: center
   :alt: A list view of all the advantages or benefits that is available for each structure type.

.. example::
   A company has two structure types, one labeled :guilabel:`Employee`, and anther labeled
   :guilabel:`Intern`. The :guilabel:`Employee` structure type contains an advantage of using a
   company car, while the :guilabel:`Intern` structure type does not. Instead, the
   :guilabel:`Intern` structure type has a meal voucher advantage available, while the
   :guilabel:`Employee` structure type does not.

   A person hired under the :guilabel:`Employee` structure type can use a company car, but cannot
   have meal vouchers. The opposite is true for someone hired under the :guilabel:`Intern` structure
   type. They would have meal vouchers available to them, not the use of a company car.

To make a new advantage, click the :guilabel:`New` button, and enter the information in the fields.
The required fields for an advantage are:

- :guilabel:`Name`: Enter the name for the advantage.
- :guilabel:`Advantage Field`: Select from the drop-down menu what field in the payslip this
  advantage appears under.
- :guilabel:`Advantage Type`: Select from the drop-down menu what type of advantage the benefit is.
  Select from :guilabel:`Monthly Benefit in Kind`, :guilabel:`Monthly Advantages in Net`,
  :guilabel:`Monthly Advantages in Cash`, or :guilabel:`Yearly Advantages in Cash`.
- :guilabel:`Salary Structure Type`: Select from the drop-down menu which salary structure type this
  advantage applies to.
- :guilabel:`Display Type`: Select from the drop-down menu how this advantage is displayed.

.. image:: payroll/new-advantage.png
   :align: center
   :alt: List of advantages employee's can have.

Personal info
-------------

Every employee in Odoo has an *employee card* which is created when a candidate becomes an
employee. This card includes all of their personal information, resume, work information, and
documents.

The personal information is gathered from the salary package configurator section that a
candidate fills out after being offered a position. This personal information is then transferred to
the employee card when they are hired.

To view an employee's card, go to the main :menuselection:`Employees` app dashboard, and click on
the employee's card.

.. note::
   An employee card can be thought of as an employee personnel file.

The *Personal Information* section lists all of the fields that are available to enter on the
employee's card. To access this section, go to :menuselection:`Payroll --> Configuration --> Salary
Package Configurator  --> Personal Info`.

.. image:: payroll/personal-info.png
   :align: center
   :alt: A list of all the personal information that appears on employee card to enter.

To edit a personal info entry, select the entry from the list, and modify the personal info. To
create a new personal info entry, click the :guilabel:`New` button.

The required fields, aside from entering the :guilabel:`Information` name, are :guilabel:`Related
Model`, :guilabel:`Related Field`, and :guilabel:`Category`. Select a :guilabel:`Related Model` from
the drop-down menu. :guilabel:`Employee` populates the field by default, but the :guilabel:`Bank
Account` option is also available if the information is related to a bank account instead. Select a
:guilabel:`Related Field` from the drop-down menu that best describes what kind of personal
information this entry is, and where it is going to be stored in the backed. Then, select a
:guilabel:`Category` from the drop-down menu that the personal information should be under, such as
:guilabel:`Address` or :guilabel:`Personal Documents`.

The two most important fields on the personal info form are :guilabel:`Is Required` and
:guilabel:`Display Type`. Checking the :guilabel:`Is Required` box makes the field mandatory on the
employee's card. The :guilabel:`Display Type` drop-down menu allows for the information to be
entered in a variety of ways, from a :guilabel:`Text` box, to a customizable :guilabel:`Radio`
button, a :guilabel:`Checkbox`, a :guilabel:`Document`, and more.

.. image:: payroll/personal-new.png
   :align: center
   :alt: New personal information entry.

Resume
------

.. note::
   Currently, the :guilabel:`Resume` feature found inside the :menuselection:`Payroll app -->
   Configuration --> Salary Package Configurator --> Resume` menu is still in development and only
   serves a specific use case for Belgian markets. The documentation will be updated when this
   section has matured to more markets.

Offers
------

When a candidate is offered a position, there are several items that need to be tracked in order
for a business to stay organized, such as where in the offer process the candidate is, how long the
offer is valid for, as well as all the offer details. These details are all stored in each *offers*
record.

To view all offers, go to :menuselection:`Payroll --> Configuration --> Salary Package Configurator
--> Offers`. All offers that have been sent to either potential candidates or current employees
appears in this list. The status, offer start date and expiration date, amount of the contract, and
more, can all be found in this list. Offers sent via the :guilabel:`Recruitment` application appear
here, but there is an option to create a new offer from the :guilabel:`Payroll` application as well.

.. image:: payroll/offers.png
   :align: center
   :alt: A list of all offers given to a current employee or potential candidate along with the
         status of the offer.

To create a new offer, click the :guilabel:`New` button. The two required fields are the
:guilabel:`Contract Template`, and the :guilabel:`Company`. Select the :guilabel:`Contract Template`
and :guilabel:`Company` from the drop-down menus. Fill in any other details for the offer, such as
the :guilabel:`Job Title`, :guilabel:`Department`, the :guilabel:`Contract Start Date` and the
:guilabel:`Offer Validity Date`.

.. toctree::
   :titlesonly:

   payroll/contracts
   payroll/payslips
   payroll/work_entries
   payroll/reporting