The payroll module in Lenvica HRMS is flexible enough to allow the user to define his own Salary Structures. Different groups of employees may have different salary structures. This help document describes how you can make changes to an existing salary structure.

My company has decided to provide Sales Commission to all sales managers based on the sales revenue for the month. Each manager should be paid 2% of the Sales Revenue for the month.

Let me show you how to make changes to the existing salary structure to accommodate this change. Before we do that, let’s take a look at an existing payslip to understand what changes are required.

Here is a payslip from one of the Sales Managers. We are going to add a new Salary head called Sales Commission to this salary structure.

User-defined Salary Structures

Step 1: First, let’s create a new Non payslip Salary Head

That stores the ‘Sales Revenue’ for the month

Non payslip Salary Head
Non payslip Salary Head
Non payslip Salary Head

Step 2: Let’s also create a new Earnings Salary Head for the ‘Sales Commission’

Earnings Salary Head
Earnings Salary Head
Earnings Salary Head
Earnings Salary Head

Step 3: Add the ‘Sales Revenue’ to the Salary Structure.

Salary Structure
Salary Structure
Salary Structure
Salary Structure

It’s going to be a fixed value which will be keyed in every month

Salary Structure

Step 4: Now, add the ‘Sales Commission’ to the Salary Structure

Sales Commission
Sales Commission

Let’s define a formula to calculate the Sales Commission. Sales commission is 2% of the Sales Revenue

Sales Commission
Sales Commission
Sales Commission
Sales Commission
Sales Commission

The salary structure is successfully updated.

Sales Commission

Now, let’s verify if the changes are working as expected by processing salary for one of the Sales Managers.

Step 1: Update ‘Sales Revenue’ in Salary Card

processing salary
processing salary
processing salary
processing salary
processing salary
processing salary
processing salary

If you want to update ‘Sales Revenue’ for multiple employees use the ‘Update Salary Card Value’ option.

Update Salary Card Value
Update Salary Card Value
Update Salary Card Value
Update Salary Card Value
Update Salary Card Value
Update Salary Card Value
Update Salary Card Value

Step 2: Now, let’s process payroll for one of the Sales Managers

process payroll
process payroll
process payroll
process payroll

Step 3: Let’s verify the payslip screen

payslip
payslip
payslip
payslip
payslip

As you see, the sales commission is calculated as expected

payslip
payslip
payslip

Step 4: Let’s also verify the payslip report. It looks fine too.

payslip report
payslip report
payslip report
payslip report
payslip report

So, we have successfully made the salary structure update for the Sales Managers.

payslip report

Let’s process payroll for all sales managers.

process payroll
process payroll
process payroll
process payroll
process payroll

The payslips are all ready now. Let’s take a quick look.

Lenvica HRMS is simple and flexible, so, you can configure payroll as per your requirements. Also, you can create as many salary structures as you want for multiple groups of employees.

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