Salary components in the chart of accounts

One of the most important steps in the accounting integration process is mapping the chart of accounts. Each payroll component in the Jisr system is integrating to one of the accounts defined in the user's accounting system, and accounting entries are created based on this integration.

This article aims to clarify the concept of default payroll components in the accounting integration process, how to select these components and link them to their corresponding accounts in the accounting system, and how to define these components within the Jisr HR system.

The payroll components are divided into several tabs, each containing specific payroll components. These tabs are: Salary and Allowances, Lateness and Absence, Allowances and Accruals, loans, Other Pay types, and Other Deductions.

Default Salary Components in the Accounting Process

All these components are available to all users:

Salary and Allowances

Basic Salary: This is the primary component of an employee's pay before any additions or deductions.

Some Allowances: These include housing and transportation allowances. These allowances are typically treated as additions to the basic salary, increasing the total taxable income and appearing as part of the payroll cost in the chart of accounts.

Retroactive Salary Adjustment - Addition: An amount added to an employee's salary when a decision is made to increase it retroactively, paying the difference for previous months in a single payment.

Retroactive Salary Adjustment - Deduction: An amount deducted from an employee's salary when it is proven that they were entitled to a lower salary than they received in previous periods, or when their salary is reduced retroactively.

Note: Users can retroactively adjust their salary when modifying their own salary from the employee's file.

Appointment Day Differences - Addition: An amount added to an employee's salary if they are appointed on a date other than the first of the month. Their salary is calculated only for the actual days worked.

Appointment Day Differences - Deduction: An amount deducted from an employee's salary if they start working after the first of the month. This deduction covers any days not worked before their official start date.

Remaining Salary After Annual Leave: The amount an employee is entitled to if they have used their full annual leave balance and are subsequently absent from work. The additional days are deducted from their salary.

Advance Salary: A salary payment made to an employee for a future period not yet worked. This payment is refunded upon termination of service or at the end of the month.

Lateness and Absence

Deductions for lateness and absence are defined in the "Deductions" tab of "Salary Components".

Late Arrival: A deduction from an employee's salary for arriving at work after the designated working hours. The deduction is calculated based on the number of minutes or hours late.

Early Departure: A deduction from an employee's salary for leaving the workplace before the end of the official working hours.

Absence: A full day's pay deduction when an employee is absent from work without permission or an acceptable excuse.

Missing Punch: A fine or small deduction applied to an employee who forgets to clock in or out using the fingerprint scanner. This may be counted as an absence if the employee cannot prove their presence.

Unpaid Leave: Days of leave taken by the employee with their consent but without pay. The full value of these days is deducted from the monthly salary.

Sick Leave Deductions: A partial deduction from an employee's salary during their illness. The deduction percentage is determined by law based on the number of sick days and the extent to which social security coverage applies.

MolViolation: stands for "Ministry of Labor Violation" (or Ministry of Human Resources and Social Development violation).
 

Loans

The types of loans are defined from the "loans" tab in "Salary Components".

Accruals

All allowances and accruals are considered default salary components.

Other Pay Types and Other Deductions

Other pay types and deductions are defined under the "Variable pay" tab for pay types in "Salary Components" and under the "Deductions" tab for other deductions.