How Do I Switch To The New Orderry Payroll?

The first part of this article contains information about changes and new features of the Payroll module. In the second part, you will find an algorithm that will help you switch to the new Orderry Payroll successfully.

First, it is crucial to understand that now editing the calculation rules does not change the payroll calculation for the previous period but takes effect from the moment of editing.

1. There are three separate tabs on the Settings > Employees page: Employees,

Roles and Payroll Calculation Rules.

2. A new payroll calculation method includes monthly base salary, settings transfer of Daily and Hourly base salaries, and non-working days.

In the employee's profile, on the Payroll Calculation Rules tab, you can add a monthly, daily, and hourly base salary and set up payment for non-working days.

This article provides more information on how to set up a base salary and days off for an employee.

Note: all the previously configured rules of the type "For working days", "For working hours", "Sick leave", "Vacation", and "Day off" are automatically transferred as base salaries.

If you previously set them up for informational purposes but did not use them for payroll, we recommend deleting them so that they do not affect the new payroll calculation.

The description of such base salaries will indicate that they were created automatically. Their start date will be the date of the update, and the moment of calculation will be "Daily" (according to how they worked before).

3. New events and location of individual payroll calculation rules.

You can now create and set up payroll rules (commissions) on the "Payroll Calculation Rules" tab for all employees at once.

That is, you create all the rules that apply in your company and then quickly assign several rules to a specific employee.

There are many new events for commissions. For example, for creating a lead/task, to the lead manager for creating a work order/sale, for the assigned specialist, and so on.

Moreover, you can:

Read more about customization and new commission features in this article.

Note: all the old customized rules (from the General tab in the employee profile) are not available for viewing, editing, or deleting but will still work for the old payroll report for some time.

Meanwhile, Orderry creates new payroll rules (based on the old ones) automatically and applies them to employees accordingly.

The following conditions are applied when transferring payroll rules:

Note: after migration, you need to pay attention to the rules settings for different types of work orders. E.g., earlier in the employee profile, 2 rules were configured for creating work orders: 2% for the "Warranty" work order type and 10% for all work order types. These old rules worked in such a way that an employee received 2% for warranty work orders and 10% for all other types of work orders except for warranty ones. Now, a new logic has been applied. After the migration of such rules, employees will receive 2 payments for creating a warranty work order: 2% from the first rule and 10% from the second rule, since both of them have a checkbox for the warranty work order type enabled. To change this, you need to go to the rule for all work order types and uncheck the box for the warranty work order type.

Next, you can reorganize these new rules — delete unnecessary ones, edit existing ones, or create new ones.

4. Exceptional commissions.

Exceptional commissions can still be customized for products, services, product categories, and service categories.

You can see a list of all custom rules on the Settings > Employees > Payroll Calculation Rules page. Here you can quickly edit or delete exceptional commissions. Learn more about setting up and working with exceptional commissions in this article.

Please note that now there is no dependence on the calculation method. If the primary rule contains a %, and the product dialog window displays a fixed amount, a fixed amount will be calculated for the employee. In this regard, if you have set up both exceptional commissions in the product/service/category dialog window, then both commissions will be calculated in the salary.

5. Coefficients.

The coefficients are no longer located in a specific rule, as before, but are placed separately in the employee's profile on the "Payroll rules" tab. Remember that the coefficient only affects exceptional commissions in services, products, and categories.

Now you can change the coefficient more flexibly and appropriately because it is set separately for products, services, product categories, and service categories in work orders and sales.

E.g., there is an exceptional commission of 100$. You set the coefficient to 2 for products in sales in the employee's settings.

After selling this product, the employee will receive a double commission for this product.

(jpg)

Another example is you do not want an employee to receive exceptional commissions for services and their categories in sales, as well as for categories of services and products in work orders. To do this, just set the coefficient to 0.

Learn more about setting coefficients in this article.

6. A new method of payroll calculation includes penalties and bonuses.

Orderry now allows you to create penalties and bonuses for employees. You can add a new penalty or bonus to the employee's profile on the Salary tab and in the payroll window. Learn more about penalties and bonuses in this article.

7. Payroll and accrual.

There is a new "Payroll Calculation" tab on the Finance page, where you can see each employee's current calculation and understand the payroll's total amount.

It is essential to understand that now editing the calculation rules does not change the calculation for the previous period but takes effect from the moment of editing.

Next is another new tab — "Payroll Accruals". Here, the calculated salary is accrued to the employee's balance.

Please note that it is the accrual that changes the employee's balance. However, even without accrual, you will see the correct calculated amount to be paid in the employee's profile on the Salary tab and pay out this salary.

Find more information about payroll and accrual in this article.

8. Salary payment.

You can pay salaries in the employee's profile on the Compensation tab.

Here you will see the employee's Current balance, which consists of all work orders, sales, postings, and payments where the employee is a client or supplier. The balance is now also affected by the accrued salary.

Below you can see the Estimated amount to pay, equal to the difference between the accrued salary and the employee's current balance.

Below is the + Payment button, which you can use to make a salary payment. It is possible to pay salaries in any period: daily, weekly, twice a month, once a month, etc. Therefore, you do not need to make accruals from the previous step to pay your salary.

For example, you have set up a monthly base salary of 5000 for an employee (calculation is the last day of the month) and added a "to the manager for a sale" commission. But in your company, all commissions are paid weekly.

At the beginning of the month, the employee has not yet sold anything, so the Accrual for the current month is 0, the Current Balance is 0, and the Estimated amount to pay is 0.

The first week passed, during which the employee made some sales and earned 1000 commissions. Then the Accrual for the current month is 1000, the Current balance is 0 (because there was no accrual), and the Estimated amount to pay is 1000 (1000-0=1000).

You make a salary payment of 1000. The accrual amount remains unchanged — 1000 (because there has been no accrual so far). The current balance is now 1000. The employee owes us because there was no accrual to indicate that we owe the employee. The estimated amount to pay is 0 (1000-1000=0).

This continues until the end of the month. Every week, the employee is calculated and paid a salary for their sales, but this amount is not accrued, so the amount "Employee owes us" in the Current balance increases. In the end, you pay out the estimated salary payable (4 weeks of commission and the base salary).

Therefore, on the last day of the month, the Compensation will look like this: the Current balance and the Accrual display the entire amount earned by the employee for the month, and the Estimated amount to pay is 0. On the first day of the next month, you make an Accrual, after which the Current balance is equalized, and a new payroll cycle begins.

Thus, you no longer need to look at the old payroll report and then adjust the employee's balance or record it in the employee's separate salary cashbox. Remember that you can see the calculation for each document and rule on the Salary tab or a separate salary payroll page. Find more information about paying salaries in this article.

9. My compensation.

A new "My compensation" page has been added to Orderry for each employee to display their compensations instead of the old payroll report.

Please note that on this page, the Current balance is displayed from the employee's point of view, not the company's. If we owe them and the balance is with a minus sign (-) on the Compensation tab in the employee's profile, this is how the company sees it because, for the company, it is a minus. On the "My compensation" page, this amount will be displayed with a plus sign because, for the employee, it is a plus.

In the Payroll Calculation Rules block, employees can see their current base salary and the number of active commissions. You can see more detailed information by clicking on the number of commissions.

10. Access rights.

New access rules have been added to all new functions accordingly:

You can use the outdated payroll rules and the Payroll Report for another 3 months after the update, but you can’t change these old rules.

We recommend switching to the new Payroll module following these steps:

1. After the update, all the old rules are automatically created according to the new logic and applied to the same employees (starting from the moment of the update). Therefore, you have 2 calculation systems working simultaneously: the old one and the new one. You first need to adjust these new rules, understand how they function and create new ones if necessary.

2. Previously configured base salaries are also automatically transferred and applied to employees. Similarly, you need to check and adjust these settings and create new base salaries if necessary.

Payroll accrual (accruals ≠ payments) cannot be made in the current month — you will be able to pay salaries for February only on March 1. Therefore, until the end of February 2023, you have time to get used to the new payroll rules and their features, do various experiments, etc. Don’t miss out on this opportunity, as the payroll accrual cannot be recalculated for the previous period in the new Payroll module. If you make any edits to the rules, and in case of any errors, it will not always be possible to fix everything by deleting the incorrect rule. However, the new Payroll module allows you to eliminate the mistakes in settlements with employees when the salary is not just calculated but recorded on employee accounts, and nothing else can be retroactively recalculated. E.g., when someone changes a non-standard rule in a product and all employees are paid 10 times more for this product for all time automatically.

On March 1, do the following to switch to the new Payroll permanently:

1. View the new payroll calculations for February for all employees. The amount of the new payroll may need to be corrected because you've been setting up different types of rules and testing their operation in February. You can see the correct amount in the old Payroll Report. Therefore, you need to adjust the new calculations using penalties (to reduce the amount) or bonuses (to increase the amount).

2. Accrue calculated salaries. The correct amount will be applied to the employees' balance.

3. If you have previously made payroll settlements via cashboxes or in Excel, you can adjust the employee's balance — quickly update the employee's balance according to the cashbox balance (or the amount in Excel).

4. Pay salaries out (click the + Payment button on the Salary tab). Next, the employee's current balance will again reflect the actual amount — the employee owes you, you owe the employee, or 0 (zero).

5. That’s it. A new payroll cycle begins, your calculation rules are already correctly configured and functioning, and the balances are updated. Further, you use the new Orderry Payroll according to your internal processes.