Skip to main content

MULTIPLE CURRENCY MANAGEMENT IN PAYROLL

 Many Organizations have transactions in more than one currency. Such transactions have to be recorded either in the base (home) currency or in the foreign currency. If the transactions are recorded in home currency, the rate at which the foreign currency is exchanged should be recorded as well. At times you need to record the transaction in the foreign currency itself when you maintain the balance of the concerned account in foreign currency.

Centra Hcm makes it easy to manage multiple currencies, automatic calculations of exchange rates, automatic conversion of any currency used to record a transaction to the currency of the account, etc.

Please follow below steps to calculate payroll using multiple currency. 

Step 1: - Definition of Exchange Rate.

·         Login to focus9 application and navigate to Masters >> Currency master >> Exchange rate definition master. 

·         Select Base Currency & with Effective date.

·   Map desired currency with base currency and provide exchange rate as shown below.

Figure 1: Exchange Rate Definition screen

Step 2: - Map currency in employee details.

·         Navigate to employee master and select the desired employee and select the currency.


Figure 2 : Curreny mapping in employee master

For example: In the above screenshot we have mapped USD currency to David.

Step 3: -Define employee earnings.

·         Navigate to Employee earnings and select the employee and define earnings, value & map with the account.

                                   Figure 3: Defination of  Employee earning.  


·         We can also map different currency against each earning.

For Example: - Consider that we are willing to Calculate Basic salary in USD and House Rent Allowance in Dirham then we need to define employee earnings as shown below.


                               Figure 4: Currency mapping in employee earnings.

 Step 4: -Calculate payroll using single employee payroll.

·         Navigate to payroll >> Single employee payroll, select the desired employee and process payroll.

·         Currency type and rate shall be displayed below each component.

·         Actuals column displays the basic value that is defined in employee earnings.

·         Earnings columns displays the amount as per the exchange rate calculation           defined.

                 Figure 5: Currency type & Rate preview in single employee payroll. 

Step 5: - Displaying of Basic & Basic_NC values in pay sheet &       Pay slip.

Navigate to reports >>Pay sheet, select the desired employee and payroll month and click ok.

We shall be able to view the Basic & Basic_NC values in pay sheet as per the exchange rate definition.

   Figure 6 : Currency type & rate preview in paysheet . 

 ·    Similarly, we can view Basic & Basic_NC values in payslip as shown below.


 

                                     Figure 7 : Currency type & rate preview in payslip . 
                             

Note : In current release we are unable to provide exchange rate caluculations for below variable.

·        TOTAL EARNINGS_NC.

·        TOTAL DEDUCTIONS_NC.

·         NET_NC.

Step 6: - FA posting with exchange rate calculations.

·         Post payroll data to FA.

·         Login to focus9 application and navigate to Transactions >> Journals>> Credit notes (Linewise) and select the desired record.

·         We shall be able to view the postings against the employee in exchange rates.


                                                          Figure 8 : FA posting. 





 



Comments

Post a Comment

Popular posts from this blog

TDS details in Payslip

TDS variables are added in the payslip to display the tax details for employees. These variables will give a clear idea to the employee of what is the taxable income, total tax per year to be deducted, tax deducted till date and the balance tax which he needs to pay. Follow the steps below. 1. Create the payroll components as mentioned below under Deductions. TDS_TotalTaxableIncome TDS_TotalTax TDS_PrevEmployerTDS TDS_TaxDeductedYTD TDS_BalanceTax 2. Go to deduction preferences, and add the TDS variable exactly with the same name under formula. Below is the screen shot for reference. 3. The values of TDS variables will be displayed in the payroll preview screen. The same will be displayed in the payslip, once these variables are mapped to the payslip. Note: 1. Priority Order: TDS variables should be placed after TDS component. Sample Payslip with TDS variable:
3 comments
Read more

Advance Leave Encashment

This option is for leave encashment for advance leaves. There are two scenarios here: 1. If payment type is selected as continuous in leave encashment screen, then the leave encashment salary will be credited through the payroll. 2. If payment type is selected as advance in leave encashment screen, then the leave encashment salary will not be credited through payroll but in the print layout, encash amount can be viewed. Settings>>Customization>>Leaves>>Leave Encashment>>Print layout Note: Employee Account and Salary Account should be mapped in the Employee master Follow the below steps for FA posting: 1. Create two account master fields in leave encashment screen as shown in the below screen. In the above two screens, two accounts are created. One is Company account in the first screen and Emp account in the second screen. Employee account is created to credit the encash amount and add these two fields in page layout of leave encashment. 2. Run below stored pro...
Post a Comment
Read more

Using Stored Procedure in the Earning/Deduction Formulas

Naming Convention : Stored Procedure Name : pPay_GetData1 Variable to use above stored procedure : fPay1 Advantages: we can assign multiple earning/deduction values using single stored procedure Eg : CREATE PROCEDURE pPay_GetData1 (      @xmlIn AS XML = NULL      ,@xmlOut AS XML = NULL OUT      ,@Result AS DECIMAL(18, 4) OUT      ) AS BEGIN      SET NOCOUNT ON;      SET @xmlOut = @xmlIn     DECLARE @EmpId AS VARCHAR(max),@PayrollRefType AS VARCHAR(100)      declare @ToDate as int=0     declare @BonusFromDate as int=0,@BonusToDate as int=0     --Retriving Employee Id      SELECT @EmpId = v.value('iEmpId[1]', 'varchar(max)')      FROM @xmlIn.nodes('/PayrollData') x(v)     --Retriving Payroll Date      SELECT @ToDate = v.value('...
Post a Comment
Read more