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

Create Earning Payhead -2

Introduction: 

Tally Prime is a powerful accounting software that offers businesses a range of features for managing their payroll. One of these features is the ability to create earning payheads, which are used to define the various earning components of an employee's salary, such as basic pay, 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 'Pay Heads' option from the dropdown menu.

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

Step 5: In the 'Pay Head Creation' screen, select 'Earnings' as the pay head type.

Step 6: Enter a name for the pay head, such as 'Basic Pay'.

Step 7: Enter a short name for the pay head, such as 'BP'.

Step 8: Select the appropriate 'Calculation Type' for the pay head. For example, 'On Attendance' if the pay head is based on attendance or 'As Computed Value' if it is based on a formula.

Step 9: Enter the calculation formula for the pay head, if applicable.

Step 10: Select the appropriate 'Rounding Method' for the pay head. For example, 'Normal Rounding' if rounding to the nearest value or 'No Rounding' if no rounding is required.

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

Step 12: Repeat the process to create additional earning payheads, such as allowances or bonuses.

Tips for Creating Earning Payheads in Tally Prime:

• Ensure that all payhead information is accurate and up-to-date.
• Use a clear and concise name for each pay head to avoid confusion.
• Use the appropriate calculation type and formula for each pay head to ensure accurate calculations.

Conclusion: 

Creating earning payheads in Tally Prime is a simple process that can help businesses manage their payroll more efficiently. By defining the various earning components of an employee's salary, businesses can easily calculate and track salary payments, and provide employees with a clear breakdown of their earnings. With the range of options available in Tally Prime for creating earning payheads, businesses can customize 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.