We are excited to announce that the new Payroll module in Orderry is now officially out of Beta status. We've invested significant effort in addressing issues and adding previously lacking settings. In this article, we'll not only cover what was and what is now (although that will be included), but we'll also focus on how to make the most of these new features.

The enhanced payroll is incredibly flexible and comes with numerous settings, offering various usage scenarios. We'll discuss some of the most common ones to give you a fundamental understanding of what you can achieve with the new functionality.

But before we dive into specific scenarios, let's briefly compare the old and the new.

The predecessor to the new module is the Payroll Report, a simple calculator that calculates the salary when you press the 'Apply' button. However, its capabilities end there. It doesn't provide insight into whether you paid something to an employee this month, how much is yet to be paid, or if any changes in the work orders could lead to incorrect or outdated calculations. It's indeed a straightforward calculator.

In contrast, the new payroll module is a standalone system within Orderry. This module allows you to:

Now, let's transition from general concepts to more specific usage scenarios. But first, let's revisit the payroll terminology.

Now, let's explore the new features in the Orderry Payroll.

The payroll module is intricately linked with the Work Schedule. However, the monthly base salary is an exception as it can function independently. You specify a date for the system to calculate the base salary, and on that chosen day, the specified amount appears in the 'Finance > Payroll Calculation' page.

For a monthly base salary, a common payment scheme involves an advance payment plus the basic pay. In Orderry, you can easily implement this scheme by specifying two calculation dates in the salary settings. For instance, if a manager receives $1,200 per month, an advance of $500 on the 15th and $700 on the last day of the month can be configured in the system.

Nevertheless, the Work Schedule becomes necessary for a monthly base salary if your employees can take unpaid vacation, sick leave, or other days off.

You can automatically deduct unpaid non-working days if they are marked in the schedule. To do this, configure the deduction amount for sick leave, vacation, and days off from the monthly base salary—either the cost of one working day or a fixed amount. Orderry will automatically adjust this if you mark non-working days as unpaid on the 'Settings > Work Schedule' page.

Setting up a daily base salary is recommended for employees with a fixed number of working hours per day but a variable schedule. An hourly rate is the best choice if an employee does not have a set number of working hours. Both types can be calculated either daily or on the last day of the month.

However, the Work Schedule becomes mandatory here, as Orderry calculates the number of working hours and days based on it.

If an employee receives a configured daily or hourly base salary, Orderry includes the daily base salary or a fixed amount in the calculation for non-working days unless marked as unpaid in the Work Schedule.

Please note that you can mix types of base salaries if needed. For example, set a minimum monthly base salary and add a daily "outing" base salary. The main limitation is that only one monthly, daily, and hourly base salary can be active simultaneously. Two salaries of the same type will not work concurrently because one will replace the other.

In certain scenarios, employee salaries may need to be adjusted, such as when a new employee agrees to a specific salary during the probationary period, and after successful completion, the salary is increased. Alternatively, an employee might request a pay review, with the agreed-upon increase implemented after a specified period. Orderry allows you to pre-automate such cases.

As mentioned earlier, two base salaries of the same type cannot be active simultaneously. However, Orderry allows you to create a base salary with a future start date. For instance, when hiring in December, you can set a monthly base salary for the employee at $900. After a 3-month probationary period, when the employee's salary should increase to $1,200, you can create a second salary in advance with this amount, setting the start date for March. This way, the first salary will have an end date, and in March, Orderry will automatically start calculating the increased compensation when the previous one becomes inactive.

This approach can also be applied to plan increases for daily and hourly rates, enabling efficient management of payroll processes with Orderry's improved payroll module.

As mentioned earlier, using the Work Schedule is essential for accurate calculations of daily and hourly rates and for the efficient functioning of the payroll module. The Work Schedule can be filled out at any time, and here are a few scenarios to consider:

While you can fill out the Work Schedule at any time in the context of payroll, it's advisable to do so in advance and keep it consistently updated. This practice not only ensures accurate payroll calculations but also allows you to visualize non-working days for performers in the Work Order Scheduler.

For a detailed guide on setting up rates, refer to this link.

If an employee's compensation is based on performance, either in addition to or instead of a base salary, Commissions become essential. Commissions can serve as a motivational component of compensation or even form the entire basis for configuring piece-rate pay structures for employees.

To automatically calculate commissions, you must create rules on the 'Settings > Employees > Payroll Calculation Rules' page and then apply them to specific employees. These calculation rules are built on the following parameters:

Additional settings include checkboxes depending on the selected event, such as canceling the commission if the item or document is deleted or avoiding duplicate rule calculations for certain statuses.
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Once rules are set up, they need to be applied to employees, which can be done through bulk actions on the 'Settings > Employees > Payroll Calculation Rules' page or in the employee profile on the 'Payroll Calculation Rules' tab.
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​Important things to know about commissions:

For a detailed guide on setting up commission calculation rules, click here. Now, let's delve more into exceptional commissions.

An exceptional commission is a reward configured for specific labor, service, product, or category.

For instance, let's say a technician receives a standard 5% commission for a product in a work order, as per the general rule. Now, with exceptional commissions enabled, you can motivate employees further. For a specific product with an expiring supplier's warranty, you may set a higher commission, say 10%, within that product's dialogue. When the technician adds this particular item to the work order, they receive an exceptional commission of 10%, while for other products, they still get the standard 5%.

Since exceptional commissions are configured in the dialogues of individual labors, services, products, and categories, they are listed on the 'Settings > Employees > Payroll Calculation Rules' page for easy tracking.

But there's more customization available. To tailor exceptional commissions based on an employee's experience or qualification, coefficients can be used. In each employee's profile on the 'Payroll Calculation Rules' tab, coefficients can be set to multiply or decrease exceptional commissions. For example, a trainee with a coefficient of 0.5, a specialist with a coefficient of 1, and a master with a coefficient of 1.5 will receive varied exceptional commissions for the same configured percentage.
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You can find a step-by-step guide on setting up exceptional commissions in this article.
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Once base salaries or commissions are calculated according to their settings, the calculated amounts appear on the 'Finance > Payroll Calculation' page or the 'Salary' tab in the employee's profile. Here, details such as when the calculation occurred, the specific rate, and the reasons for the bonus calculation are provided.

Notably, you can now view payroll data for any period on the 'Finance > Payroll Calculation' page, a new feature that expands visibility beyond a specific month. It's essential to remember that this page displays only the payroll that has yet to be accrued to employee balances.

Another notable feature is the ability to change the base salary amount directly in the calculation document. This flexibility allows adjustments, for instance, when an employee is hired mid-month, avoiding the need to repeatedly change salary settings.

After confirming the accuracy of the calculations, the final step is to proceed with the payroll accrual at the end of the month.

Creating a payroll accrual involves recording company expenses irrespective of the payment date, reflecting a commitment to the earned wages that the company must pay out. Rather than recording it on the actual accrual day, it is documented on the last day of the month when this financial obligation arises.

But why do this? While the cash method offers insights into the current cash position, the accrual method provides a comprehensive view of the company's receivables and payables. With Orderry's upcoming P&L report that explicitly considers payroll accruals, you'll gain a more thorough understanding of your financial indicators.

Payroll accruals can be created on the 'Finance > Payroll Accruals' page or the 'Finance > Payroll Calculation' page using bulk actions. For a step-by-step guide on accruing payroll, refer to this article.

It's crucial to note that payroll accrual is not equivalent to payment. Now, let's discuss payments separately.

Even though payroll can only be accrued once the month concludes, you have the flexibility to pay your employees multiple times a month if necessary. On the Compensation tab in the employee's profile, you'll find a widget displaying:

Orderry calculates the estimated amount payable as the difference between the estimated amount to accrue and the employee's current balance.

You can choose to pay your employees once a month after accruing the payroll, making the estimated amount to pay your actual payable.

Alternatively, you have the option to pay your employees more frequently, such as once a week, decrementing the employee's balance each time. However, after closing the month, you can accrue payroll, make the final payment, and settle with your employees.

In essence, the pay frequency doesn't impact the process.

On the 'Payroll' tab, you also have the capability to create bonuses or penalties for employees.

Employees can access their compensation information in the User Profile. Orderry now introduces the 'My Payroll' page, allowing employees to view a table similar to the one on the 'Finance > Payroll Calculation' page. Additionally, they can review all payroll calculation rules configured specifically for them.

Taxes configured in Orderry for labor, services, and goods are considered in the salary calculation:

It's important to note that Orderry does not currently include the calculation of payroll taxes. However, you can record them using cash basis accounting (create expenses with corresponding cash flow items). In the future, you will be able to register their accruals as expense items.

If the salary has not been credited yet:

For closed periods, adjustments will occur in the current period. Due to the restriction on editing closed work orders, reopening and modifying such orders will result in recalculations recorded in the current period.
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Orderry plans to enhance the payroll capabilities with:

As of February 1, 2024, support for the old Payroll Report will be discontinued.

If you have any questions or suggestions regarding this module, please contact Orderry Support via chat and refer to the Knowledge Base instructions.

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