Creating Earning Payheads in Tally Prime: A Step-by-Step Guide

Create Earning Panhead

Introduction: 

Tally Prime is a popular accounting software that offers a range of features for businesses, including payroll management. Payheads are one of the key components of payroll management in Tally Prime. Earning payheads are used to specify the types of earnings that employees receive, such as basic salary, allowances, and bonuses. In this article, we will provide a step-by-step guide on how to create earning payheads in Tally Prime.

Step 1: Open Tally Prime and select the company for which you want to create an earning payhead.

Step 2: Go to the 'Gateway of Tally' and select the 'Payroll Info' option.

Step 3: Select the 'Payheads' option from the dropdown menu.

Step 4: Click on the 'Create' button or press 'Alt + C' to create a new payhead.

Step 5: In the 'Payhead Creation' screen, select 'Earnings' from the 'Payhead Type' dropdown menu.

Step 6: Enter a name for the earning payhead, such as 'Basic Salary'.

Step 7: Enter a short name for the payhead, such as 'BS'.

Step 8: Select the appropriate 'Calculation Type' for the payhead. For example, 'On Attendance' or 'On Production'.

Step 9: Enter the 'Calculation Formula' for the payhead. This formula will be used to calculate the employee's earnings based on their attendance or production.

Step 10: Enter any additional details for the payhead, such as the applicable rate and frequency.

Step 11: Click on the 'Accept' button to save the payhead.

Step 12: Repeat the process to create payheads for all types of earnings.

Tips for Creating Earning Payheads in Tally Prime:

• Ensure that the calculation formula for each payhead is accurate and reflects the employee's earnings correctly.
• Use the 'Salary Details' option in the employee record to assign the appropriate earning payheads to each employee.
• Use the 'Payhead Category' option to group similar payheads together for easier management.

Conclusion: 

Creating earning payheads in Tally Prime is a simple process that can help businesses manage their payroll more effectively. By creating earning payheads for each type of earning, businesses can accurately calculate employee earnings and generate payslips with ease. With the range of options available in Tally Prime for payhead creation, businesses can customize earning payheads to suit their needs, ensuring that they have all the necessary information to manage payroll effectively. By following the steps outlined in this article and the tips provided, businesses can create earning payheads in Tally Prime quickly and accurately, saving time and effort in managing their payroll.