Configure Undertime Deduction in Payroll Processing
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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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