New Orderry Payroll: Improved Calculation, Accrual to Employee Balances, and Payout Control
Hello, our dear Orderry users! We are happy to announce that the new Orderry Payroll is available now. We have so many new features, so we better name the list from the beginning:
- Payroll calculation in real time
- Payroll accrual to the employees' balances
- Complete control of salary payouts
- More convenient and automated rules for payroll calculation
- Monthly/daily/hourly base salary
- New settings for calculation of non-working days
- Expanded event list and new configurations for automatic commission calculation
- More flexible settings of employees' coefficients
- Separated page with payroll calculation for employees
So, let's take a closer look at all the new features. But first, let's discuss what will happen with the old Payroll Report and new terms in the UI.
What Will Happen to the Payroll Report?
We understand you need time to get used to the new features and reorganize your account. That's why we continue supporting the Payroll Report for three months in a restricted mode.
What does it mean? We migrated all your old rules of payroll calculation to the new settings. They still work for the Payroll Report, but you can't view or edit them. Note that changes in the new payroll calculation rules won't apply to the report.
This way, you can still calculate the payroll with the old tool while studying new features.
With new features, you have new terms in the UI. So let's learn them now:
- Base salary is a fixed part of the employee's payroll. Orderry calculates it automatically on the specified date.
- Commission is a variable part of the employee's payroll. Orderry calculates it automatically by configured events.
- Exceptional commission is a variable part of the employee's payroll configured for particular services, products, and their categories. Orderry calculates it automatically by configured events.
- Bonus is a variable part of the employee's payroll. You can create it manually to reward your employees.
- Penalty is a variable part of the employee's payroll. You can create it manually to decrease an employee's salary for any reason.
- Accrual / Payroll accrual is a company's obligation to pay employees their salaries, reflected on their account balances.
Now, let's move on to new features in the Orderry Payroll.
When you use the Payroll Report, you look at the payroll retrospectively. E.g., if you change a commission calculation rule, it will change data in the Payroll report for the past period. In the new payroll module, you see real-time payroll calculations.
In the Finance section, you now have a new page with the Payroll Calculation table that contains all parts of employees' salaries: base salary, commissions, penalties, and bonuses.
Here you can view every employee's detailed calculation and create a new penalty or bonus if necessary.
If you view the calculation for the closed month, you can create a payroll accrual. To do that, tick the checkboxes for needed employees, click the More actions button, and start the accrual.
When you create a payroll accrual, you record your company expenses, not depending on the payment date. It's a commitment that an employee has earned money, and your company has to pay them out. That's why you record it not by the actual accrual day but by the last date of the month when this obligation occurs.
Besides the Payroll Calculation page, you can create an accrual on the Finance > Payroll Accruals page.
In the accrual window, you also can view detailed information by every employee and create penalties or bonuses if needed.
You can accrue payroll for all employees or just a few. Also, you can save the accrual as a draft and finish it later.
Although it is only possible to accrue the payroll when the month is over, you can still pay your employees several times a month if necessary. Therefore, on the Compensation tab in the employee's profile, you have a widget with the following:
- The current balance of an employee
- The estimated amount to accrue to the employee's balance
- The estimated amount to pay
Orderry calculates the estimated amount payable as the difference between the estimated amount to accrue and the employee's current balance.
You can pay your employees once a month after accruing the payroll, so the estimated amount to pay will be your actual payable.
Or you can pay your employees, for example, once a week, decreasing the employee's balance every time. But after the month is closed, you can accrue payroll, make the final payment, and settle with your employee.
So as you see, the pay frequency doesn't matter.
On the Salary tab, you can create a bonus or penalty for an employee.
Payroll Calculation Rules
With the new Payroll module, you now have a separate tab for payroll calculation rules on the Settings > Employees page and in the employee's profile.
Note: we separated the list of employees and their roles into different tabs. On the Employees tab, you can now view the current balances of all employees.
On the Roles tab, you will see the number of employees with every role.
The Payroll Calculation Rules tab includes three sections: Commissions, Compensations table, and Exceptional commissions.
In the Commissions section, you have a list of all unique rules for commission calculations. Here, you can edit and create payroll rules.
Note: any changes in new rules won't affect the already calculated commissions for the previous periods. They will apply only to future calculations from the moment of saving changes. That's the most significant difference between the current and upcoming payroll calculations.
Also, here you can tick a few rules and apply them to an employee in bulk or copy selected rules and edit them to speed up the calculation setup.
The summary Compensations table displays all base salaries and commissions configured for every employee. You can quickly check all settings and decide if you need to change them.
And the third section, Exceptional commissions, displays all commissions configured for particular services, labors, products, or their categories.
Reminder: we migrated all your current rules of payroll calculation to new settings. But any changes on this page or in the employee's profile won't affect the old Payroll Report.
Here, you can set up a very flexible calculation for all parts of employee compensation.
You can configure different base salary types: a daily or hourly wage and a monthly salary. Moreover, you can configure the calculation day for each of them:
- For monthly salary, you can choose one, two, or more days for calculation.
- For daily or hourly wage, you can choose everyday calculation or on the last day of the month. Note: you have to fill out the Work Schedule to calculate the daily or hourly base salary.
Also, with the new Orderry Payroll, you can configure base salary raises in advance. E.g., you hire a new employee with a monthly salary of 1000 for 3-month probation. In the job offer, you agree to increase the salary to 1500 after the probation. You can set up everything on an employee's first working day to avoid forgetting to do it later.
It's simple. When creating a base salary, you need to specify its start date. You create the first salary with the current start date when you hire an employee. But if you add one more base salary with a future start date, the previous base salary will get its end date.
This way, you can configure all planned base salary raises in advance.
Set up the calculation of non-working days according to the employee's base salary type:
- Deduct unpaid non-working days from the monthly base salary
- Add paid non-working days to the daily or hourly base salary
Note: the non-working day calculation will work if an employee has a corresponding base salary type.
Commission Calculation Rules
Now you can use more settings to make commission calculation rules more automated:
- New events to calculate commissions for work orders, sales, leads, and tasks.
- Execution term to set up different commissions for urgent, closed-in-time, and overdue work orders, leads, and tasks.
- Choice of calculation moment to calculate payroll in real-time. You can choose when you want the commission to occur in the Payroll Calculation table: immediately or when the status changes to the chosen ones.
- Specify if an employee must receive exceptional commissions instead of basic ones.
- Automatically cancel calculation if a document or item was deleted.
- Exclude the possibility of commission duplicating.
And here is a list of new events for commission calculation. For Work orders:
- To lead manager for order
- To lead manager for the service/labor in the order
- To lead manager for the product in the order
- To manager for the product in the order
- To order manager
- To manager for the service/labor in the order
- To assigned specialist
For Sales: To lead manager for sale
For Tasks: For creating a task and For completing a task
For Leads: For creating a lead and For closing a lead
You can create a more flexible and automated incentive system using these new events. Please, let us know what other events you expect to see in the Orderry Payroll Calculation.
Coefficients allow you to increase or decrease exceptional commissions for employees. Previously, you had to specify employee coefficients for every single rule. But with the new Orderry Payroll, you can configure employee coefficients only once, and they will apply for exceptional commissions automatically. Besides, you can configure different commissions for services/labors, products, and their categories.
My Compensation in the User Profile
If you want your employees to see their compensation, they can do that in the User Profile. Now Orderry has the My Compensation page where they can view the table similar to the one on the Payroll Calculation. Also, they can view all payroll calculation rules configured for them.
New Orderry Payroll and Classical Financial Accounting
Payroll accrual is the first step to classical financial accounting in Orderry. If a cash basis accounting allows you to understand how much money you have now, accrual accounting gives you a bigger picture, including payables and receivables.
So after releasing the new Payroll, our next moves will be adding new Profits and Loss (P&L) statements and improving our Cash Flow report.
Also, note that we will not add the calculation of payroll taxes in Orderry. But you can already 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.
One more time, please check your current rules for payroll calculation to be prepared for the upcoming update.
Helpful Instructions in the Orderry Help Center
We know how important it is to have the ability to learn everything on your own. Therefore we prepared all the needed step-by-step instructions so you could start your journey with the Orderry Payroll whenever convenient.
Here is a list of helpful articles to start using new features and set up everything correctly:
- How Do I Switch to the New Orderry Payroll?
- How to Configure a Monthly, Daily, or Hourly Base Salary for Employees?
- Payroll Calculation Rules (Commissions)
- Exceptional Commissions
- Penalties and Bonuses for Employees
- Payroll Calculation and Accrual
- Paying Compensations to Employees
- Payroll Module Overview
- How to Use Coefficients When Setting Up Employee Salaries
We hope you'll enjoy your experience with the new Orderry Payroll! We would appreciate any feedback from you. If you have any questions, suggestions, or comments, please, leave them in the comment section below or contact our Support team via chat.