# Configure Undertime Deduction in Payroll Processing
**YouTube:** [How to Configure Undertime Deduction in payroll processing?](https://www.youtube.com/watch?v=jnKn5LfnDr4)
## How to Configure Undertime Deduction in payroll processing?
In this tutorial, we will learn how to **configure and calculate Under Time** for payroll generation in **Logic ERP**.
***
### **Access to Grade Setup**
* Navigate to the **Main Menu** → **Payroll Setups** → **Setup Grades** window.
* Here, you can define **Under Time settings** for both **new** and **existing grades**.
Select the desired **Grade** and enable the checkbox:
> **“Use new calculation engine for overtime and undertime calculation.”**
***
### **Configure Under Time Settings**
* Press the **Space Key** to open the configuration window.
* Now, follow these steps to define the under-time calculation rules:
* **Enable Late Minutes Deduction** – to activate the deduction process for late arrival or early leaving.
* **Allowed Late In Minutes:** Define the grace period from the shift start time.
* Example: If set to **5 minutes**, no deduction will apply for delays up to 5 minutes. From the **6th minute onward**, the system will start calculating under-time deductions.
* **Include Early Leaving in Late In Minutes Calculation** – enable this option if early departures should be included in under-time calculation.
* **Allowed Early Leaving Time:** Define the allowed duration an employee can leave early without deduction.
***
### **Define Under Time Rate**
From the **Under-Time Rate as Field** dropdown, select how the deduction will be calculated:
* **Actual:** Choose this option for a fixed per-hour rate.
* Example: If the under-time rate is set to ₹100, salary will be deducted at ₹100 per hour of under time.
* **User Defined:** Choose this option to base deductions on salary components.
* Press the **Space Key** on **UT User Defined Rate Setting**, and tick the **Gross Components** (such as Basic, DA, or HRA) to be included in the under-time calculation.
* Once all configurations are complete, click **OK** to save the settings.
***
### **Mark Employee Attendance**
* Navigate to **Payroll Entries** and then **Attendance Register**.
* Select the **Employee**, then define **Time In** and **Time Out**.
* For example:
* Standard Shift Duration: 8 hours
* Actual Worked: 7 hours and 40 minutes
* Late Arrival: 20 minutes
* Save the attendance record after entering the details.
***
### **Generate Payroll**
* Next, navigate to **Payroll Entry** → **Payroll Generation**.
* Select the **Employee** and **Payroll Month**, then click **Recalculate**.
* The system will display the payroll details including:
* **Under Time Hours:** 20 minutes (in this example)
* **Under Time Deduction:** Automatically calculated based on the defined rate or user-defined formula.
***
### **Result**
You have successfully configured and calculated **Under Time** in **Logic ERP**.\
The system now automatically deducts the applicable amount during **Payroll Generation** based on the configured settings and attendance data.
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