How to calculate Payroll based on Attendance in
Odoo 16

Calculating employee attendance is essential for managing human resources and ensuring the efficient operation of a business or organization. Common methods include manual tracking, time and attendance software, biometric systems, or RFID card systems. Accurate attendance tracking is essential for calculating employee compensation, including regular pay, overtime, bonuses, and other incentives. This ensures that employees are paid correctly and fairly for the hours they work. Tracking attendance helps organizations monitor and improve workforce productivity. It allows employers to identify patterns of absenteeism, tardiness, and underutilization of labor resources.

The Odoo 16 Payroll application allows users to calculate the salary or wages of employees based on different methods. Let’s see how we can calculate payroll based on employee attendance.

Step 1: Employee Module

First, we can go to the Employee dashboard to select the employee whose payroll is to be calculated.

On selecting the employee, we can view the employee profile where every detail related to that employee is displayed.

Select the ‘Contracts’ smart button at the top of the employee profile to view all contracts of that particular employee.

The page lists all the contracts of the employee in the ‘Contract History’ tab. It shows the Contract name, Start date, End date, Working schedule, Monthly wage, Monthly cost, Yearly cost, and Status. Go to the small icon at the left side of the contract to be selected for that employee to compute payroll based on attendance. On opening the contract, all the required details of the contract can be accessed.

The employee contract page shows details such as Employee, Contract Start date, Contract end date, Salary structure type, Working schedule, Department, Wage on payroll, Job position, Contract type, HR responsible, and Work Entry source.

The ‘Work Entry Source’ field displays different options such as Working schedule, Attendances, and Planning. We have to select ‘Attendances’ option to enable payroll calculation of the employee based on their attendance.

Go to the ‘Salary Information’ tab to check whether the hourly wage or monthly wage of that employee is entered. It is mandatory to specify the wage of the employee because according to this the payroll will be computed.

Step 2: Attendances Module

Now, let’s go to the ‘Attendances’ module to mark the attendance of that employee. Click on the ‘New’ button in the ‘Attendances’ menu and select the employee, specify the Check-In and check-out date and time, and the work hours will be automatically displayed concerning the check-in and check-out time.

After entering the new attendance, click on the ‘Save’ button.

Step 3: Payroll Module

Now, the attendance for the selected employee is entered. We have to compute the payroll of that employee based on all the attendance of the employee over a certain period including the new attendance that we created now. For that, Select the ‘Payroll’ application in the Odoo Apps dashboard.

Payroll Module => Payslips Menu => To Pay => New

On selecting the ‘New’ option, we can create a new payslip to be paid to that employee. On the page, we have to select the particular employee from the drop-down in the ‘Employee’ field. Automatically, all other details such as Period, Contract, Batch, and Structure of the running contract of that employee. When we go to the ‘Worked Days and Inputs’ tab, all the details related to employee work days such as attendance, time off, Overtime, and so on can be seen. These worked days and hours of the employee are reflected in their payroll computation.

To compute the payroll of the employee, select the ‘Compute Sheet’ option at the top-left corner of the page. Now, when we go to the ‘Salary Computation’ tab, Basic salary, Bonus, Tax deductions, Allowances, other deductions and so on which are defined in the Salary structure of that employee contract are computed and displayed along with the Net Salary.

On selecting the ‘Create Draft Entry’ option and proceeding with the payslip generated, we can make the salary payment of that employee over the specified period. The status of the payslip is now changed from ‘Waiting’ to ‘Done’.

Click on the ‘Create Payment Report’ option to make a salary payment. A pop-up window appears in which we need to specify the journal and click on the ‘Confirm’ button below. The salary of the employee in the payslip generated is now paid and the status of the payslip is changed from ‘Done’ to ‘Paid’.

You might be wondering how easily payslips are computed and generated in Odoo. With just a few clicks, you can set criteria for computing employee payroll and make salary payments. Infintor Solutions, your trusted Official Odoo ERP Partner is always there to help you out with various challenges faced by your company through our innovative solutions.