Custom keywords are user-defined labels that can be assigned to specific pay elements in the payroll module. These keywords can be used in formulas for processing leave items and overtime (OT) calculations.
With custom keywords, you can assign pay elements to user-defined labels for more flexible payroll formulas.
The default keywords are predefined by the system and include:
| BasicPay | Total base pay. |
| WorkDayPerMonth | Total working days in a month. |
| WorkDayPerFortnight | Total working days in a fortnight. |
| ActualWorkDay | The actual number of days worked. |
| DayWorked | Number of days the employee has worked. |
| DailyWage | Daily earnings based on pay and workdays. |
| WorkDayPerWeek | Total working days in a week. |
For example, a simple formula using default keywords:
This calculates the adjusted daily pay by adding $200 to the basic pay and dividing by the total days worked.
Now that we understand how the default keywords work, let's explore some use cases for custom keywords. These keywords can be used to incorporate specific pay elements not covered by the default keywords (e.g., FlexiPay or GrossPay), allowing you to tailor formulas for unique scenarios, including leave and OT processing.
Steps to Create a Custom Keyword in Payroll
Step 1: Go to Payroll module .
Step 2: Click on Configuration .
Step 3: Select the Payroll Tab .
Step 4: Navigate to the Custom Keywords sub-tab .
Step 5: Click on the +Add Custom Keyword button .
A pop-up window will appear for you to enter the details of your custom keyword.
Step 6: Enter a name for the custom keyword you want to create.
Step 7: Provide a description for the custom keyword, such as its purpose or the contents of the formula.
Step 8: Select the pay elements you want to include in the custom keyword. A dropdown menu will allow you to view and choose all available pay elements.
Step 9: Click Save Keyword to finalize the creation of your custom keyword.
Once saved, the custom keyword will appear on the page, along with a brief list of the pay elements assigned to it.
Under the Actions column, you will find:
- The pencil icon to edit the custom keyword.
- The trash bin icon to delete the custom keyword.
Ways to Use Custom Keywords
Custom keywords can be utilized in three different ways:
- Pay Elements
- No Pay Leave
- Leave Encashments
1. Pay Elements
Custom keywords can serve as the basis for calculating specific pay elements.
Example:
Suppose you have a custom keyword called FlexiPay, which includes the sum of Basic Pay and Transportation Allowance.
If you want to give a Bonus that is equivalent to these two components combined, you don’t need to manually calculate the amounts.
To edit a pay element, follow these steps:
- Navigate to the Payroll module
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Navigate to Administration
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Open the Employee Pay Details page
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Click on the pencil icon to access and edit the staff's Pay Information
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Instead, you can use the keyword FlexiPay in the Bonus Pay element under the staff’s pay information. The system will automatically compute the value based on the formula assigned to the custom keyword.
2. No Pay Leave
Custom keywords can also be used to calculate the No Pay Leave deduction.
To edit the formula for No Pay Leave, follow these steps:
- Go to the Payroll module
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Navigate to Administration
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Open the Process Leave Items tab
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Select the Process No Pay Leave sub-tab
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- Locate the Formula column and edit it by replacing Basic Pay with FlexiPay.
This update will ensure that the calculation for No Pay Leave deductions uses the custom keyword FlexiPay as the basis.
Instead of using Basic Pay as the basis for the deduction, you can replace it with a custom keyword, such as FlexiPay. This allows the system to calculate the No Pay Leave deduction based on the total amount defined by the custom keyword (e.g., Basic Pay + Transportation Allowance).
By using a custom keyword, you can ensure that the deduction accurately reflects all relevant components of the employee's pay structure.
When displayed on the Pay Information page, it will appear as follows.
3. Leave Encashments
By default, the amount for leave encashments is calculated based on Basic Pay. However, with custom keywords, you can change the basis of the calculation to a custom keyword like FlexiPay.
Steps to Edit the Leave Encashment Formula:
- Go to the Payroll module
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Navigate to Administration
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Open the Process Leave Items tab
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Select the Process Leave Encashment sub-tab
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Locate the Formula column and update the formula by replacing Basic Pay with FlexiPay.
This adjustment ensures that leave encashment calculations incorporate all components defined in the custom keyword.
When displayed on the Pay Information page, it will appear as follows.
If you use a custom keyword and replace Basic Pay with your chosen keyword, the pay run will reflect calculations based on the components defined in the custom keyword.