1. Concept of Odoo Payroll
Image 1 : Concept of Odoo Payroll
Welcome to the first series of Odoo Payroll tutorial , i will be sharing about my experiences in using Odoo Payroll module , and please feel free to give your valuable input and feedback to this documents so that it can help other to leverage on this powerful platform for your payroll process in handling your growing human resources requirement , you do not have to purchase a different payroll application anymore.
Main features of Odoo Integrated Payroll,
- Integrated with Employee detail , contract and benefit management , attendance policies and tracking , Leave and public holiday tracking and many others in one platform ,
- Customisable for both with or without technical knowledge ,
The Main concept of the Odoo Payroll can be summarised in 4 main topic. (Please refer to image 1 above for the overview)
- Payroll Configuration
- Employee setup
- Leave Management
- Payroll process
- Others : Salary Rule detail explanation ( we will cover the General and Inputs with the Python code evaluation , expression and what are available in it )
Before we can start using Odoo Payroll , we need to configure it , the most important configuration lies in the Salary Rules .
For simplicity to understand we will use a simple setup for every SME businesses , that will be practical in Malaysia or in any part of the world,
Gross Wages = Basic + Allowances Net Wages = Gross Wages – Deductions
image001 – We need a Salary Structures , which we made up of Basic , Gross and Net
image002 – Basic , Gross and net are Salary rules individually
image003 – Salary Rule Basic setup explanation …
image004 – Salary Rule Gross Wages explanation …
image005 – Salary Rule Net wages explanation …
stay tune … to be continued … happy odooing !
With all respect and I miss not only with this setting up but also all others that there are different kinds of deductions and those should be specified, because it will impact the net payment. Also there are deductions for the employer like in Malaysia for the EPF and SOCSO. This should be mentioned at the Payslip. Sometimes I think the complexity of payslip is underestimated. Suppose there is a company with 100 employees and all payslips are not correct?
There is not only salary but also allowances which are subject to income tax (franchise amount) Payroll is quite complex. Then we get with rules also the personal situation of the employee: – married – spouse (not) working) – children – care of disabled family members (also parents (if i am correct)); those are categorized deductions for income tax with fixed amounts.
Hi Frans , yup , you are correct , for LHDN computerised calculation , it is a pretty complicated calculation and it added complexity when there is additional renumeration( bonus ,Malaysian said "Ang pow" ) , and it also has different relief given and on top of that , we have different categories , whether spouse working , whether you are a returning expert program , knowledge worker at Iskandar etc etc … and we need a system that can cope with these changes , Malaysian payroll is probably one of the most comprehensive payroll computation in the world !