Payroll · Reference

Actions and results

What each Payroll button and automatic behaviour does, with worked numbers and what the system refuses.

On this page (19)

Payroll runs Payroll run record Payslips Manual inputs Adjustments Eligibility Final settlements Settlement record Payment files End-of-service provisions Payroll register Variance and exceptions / Payment status Rule packages Rule package record Pay elements Pay groups Pay periods Settlement policies Payroll app configuration

Payroll runs

Action	When	What you do	What happens
List and the 'Not implemented' banner		Open Payroll > Payroll runs	List loads with paging; banner text present. Note what it says about WPS / gratuity
Create a regular run	Approved package DEMO-AE in force; pay group MONTHLY active; period 2026-09 (1-30 Sep)	New run; Period MONTHLY 2026-09; Type Regular; Create	Run PR-MONTHLY-2026-09-01 opens in Draft; history 'payroll.run.create'
Second regular run for the same period refused	The run above not cancelled	New run for the same period, Regular	Refused with 'Period 2026-09 already has the regular run ...'. An Off-cycle run for the same period IS allowed (number ...-02)

Payroll run record

Action	When	What you do	What happens
Freeze inputs	Draft run; 3 employees with contracts, bank accounts	Freeze inputs	State Frozen; one snapshot per person; input snapshot hash on Traceability; approved manual inputs for the period are taken by this run; freeze exceptions listed
Freeze refuses without an approved package	Group whose package code has only a draft version	Freeze inputs	Refused 'No approved rule package <code> is in force on <date>. Approve one under Configuration.'; run stays Draft
Freeze exceptions are raised, never silent	Employee B has no contract; employee C has no bank account; D's IBAN fails its checksum	Freeze; open Exceptions	B: block 'No contract covers this pay period, so no payslip can be calculated.'; C: warn 'No active bank account is on file...'; D: 'The IBAN on file fails its checksum.' Nobody is skipped without a row
Calculate - full month (DEMO package arithmetic)	Employee A: BASIC 10,000, HOUSING 4,000, TRANSPORT 1,000; full month; no overtime	Calculate; open A's payslip	Gross 15,000.00; DEMO_DEDUCTION 2% of gross = 300.00 (cap 500); Net 14,700.00; DEMO_EMPLOYER 3% = 450.00 shown separately (not in net). Each line has 'How it was calculated' steps incl. rounding (half-up, 2 places)
Calculate - joiner proration (calendar basis)	Employee E joins 16 Sep 2026; same contract amounts; package day basis = calendar	Freeze and calculate	Proration 15 / 30 days = 0.5: BASIC 5,000, HOUSING 2,000, TRANSPORT 500; gross 7,500.00; deduction 150.00; net 7,350.00; proration line on the payslip
Calculate - unpaid leave	Employee F has 3 approved unpaid leave days in Sep (HR leave); full month otherwise	Freeze and calculate	Paid days 27 / 30 = 0.9: gross 13,500.00 (prorated elements only); deduction 270.00; net 13,230.00. Hourly unpaid leave is NOT deducted
Calculate - fixed day basis	A draft package version with day basis Fixed 30 days; joiner on 31 Jan in a 31-day month	Calculate	Employed 1 day, basis 30 -> factor 1/30 = 0.03333333; a full month is never above factor 1
Calculate - approved overtime	Employee A has 10 approved overtime hours in Sep (attendance); BASIC is the overtime-eligible component	Freeze and calculate	OVERTIME = 10,000 / 240 h = 41.666667 per hour x 10 x 1.5 = 625.00; gross 15,625.00; DEMO_DEDUCTION 312.50; net 15,312.50. Unapproved hours give warn 'N overtime hours are not approved and were left out.'
Calculate - manual input and loan instalment	Approved BONUS 1,500 input for A; an ESS loan with instalment 1,000 and 600 outstanding	Freeze and calculate	BONUS 1,500.00 earning (source input); LOAN_RECOVERY 600.00 (limited to what is outstanding); 2% deduction is on gross incl. the bonus; after posting the loan shows repaid and Settled
Pending input is excluded with a reason	A BONUS input still Pending	Freeze	Exception 'Input <id> (BONUS 1500) is excluded: input is pending, not approved.'; not paid
Mid-period pay change	HR pay change approved: salary 10,000 to 15 Sep, 12,000 from 16 Sep	Freeze and calculate	BASIC is a day-weighted average: (10,000 x 15 + 12,000 x 15) / 30 = 11,000.00; review exception 'mid_period_pay_change' must be acknowledged
Negative net blocks the payslip	A one-off PENALTY input larger than gross	Calculate	Block 'Deductions exceed gross pay; approved negative-net handling is not configured, so no payslip is produced.'
Currency mismatch	Employee's contract in USD, group in AED (named member)	Freeze	Block 'The contract is in USD but the pay group pays in AED; no conversion is applied.'
Variance against the prior posted run	August run posted; package variance limit 10%; A's net goes from 14,700 to 16,500	Calculate September	Review exception 'Net pay moved 12.24% against PR-...-08-01 (14700.00 to 16500.00); the limit is 10%.'; a new person gives 'was not paid in ...'; a missing one 'was paid in ... but has no payslip in this run.'
Acknowledge an exception	Calculated run with open review exceptions	As an approver press Acknowledge, give a reason	Status Acknowledged with the note; Approve button enables only when none is open
Recalculate	Calculated run	Recalculate	Payslips rebuilt from the same snapshots; calculation exceptions renewed; freeze exceptions kept; new fingerprint
Back to draft	Frozen or calculated run	Menu > Back to draft	State Draft; snapshots and payslips cleared; manual inputs released for the next freeze
Cancel run	Draft / frozen / calculated run	Menu > Cancel run	State Cancelled; a new regular run for the period is now allowed; an approved or posted run cannot be cancelled ('A posted run cannot be cancelled. Raise a correction run.')
Approve (second person)	Run calculated by user P; all exceptions acknowledged	Sign in as approver A; Approve	State Approved; approved fingerprint equals run fingerprint; history shows A
Approve refused while exceptions are open	One open exception	Approve (via API if the button is disabled)	Refused '1 exception(s) are still open. Acknowledge each one with a reason, or fix the cause and calculate again.'
Post to accounting	Approved run (DEMO package)	As payroll finance: Post to accounting; open the journal	ONE balanced journal dated the period end, memo '[DEMO RULES] Payroll PR-... 2026-09'. Example A only: Dr 5210 15,000; Cr 2210 300; Dr 5220 450 / Cr 2220 450; Cr 2200 (net pay account) 14,700. Posting again returns the same journal
Publish payslips	Posted run	Publish payslips	All payslips Published; the employee sees them in ESS > Payroll (only now); publishing twice changes nothing
Raise payment instructions	Posted run; A and E have valid IBANs; C has none	Raise payment instructions	One instruction per payslip with net > 0 (PI-<payslip>-1, value date = pay date); C skipped with exception 'No instruction for ...: no bank account on file.'; raising again creates no duplicates
Prepare generic payment file	Pending instructions	Prepare payment file	File PF-<run>-01, GENERIC-CSV-1: header H (count, total), one D row per instruction (IBAN, amount 2 dp), trailer T (count, total); SHA-256 stored; instructions In file
Bank change invalidates an instruction	Instruction raised; then the employee's bank account changed in ESS/HR	Prepare payment file	That instruction becomes Invalidated 'bank details changed after the instruction was raised' and is not in the file
Prepare WPS file (SIF)	Posted run in AED; each employee has a labour card number in HR identifiers	Prepare WPS file; MOHRE 13 digits, agent routing 9 digits, bank routing lines	File named <MOHRE><yyMMddHHmmss>.SIF: one EDR per employee (14-digit person code, routing, IBAN, period start/end, days, fixed pay, variable 0.00, leave days 0) and one SCR (count, total AED)
Close the run	Posted, published, every instruction accepted	Close	State Paid / Closed. Before that: 'The run cannot close: payslips are not published; 2 payment instruction(s) are not accepted by the bank.'
Correction run	Posted run; A should have had 250 more BONUS	Correction run: A's payslip, BONUS, 250, reason	New run ...-02 type Correction, already Calculated, one delta payslip of 250; the original run, payslips and journal unchanged; goes through approve and post as usual

Payslips

Action	When	What you do	What happens
Payslip record	Calculated payslip	Open a payslip	Lines with trace steps; proration 'paid days / basis = factor'; bank shown masked (e.g. AE07••••1234); opening is audited

Manual inputs

Action	When	What you do	What happens
Enter and approve an input	Users P (prepare) and A (approve)	P: New input BONUS 1,500 for A, period 2026-09; A: Approve	Pending then Approved; P cannot approve their own; Reject sets Rejected and the input never reaches a run
Newer source version supersedes	Input with source REF-1 v1 pending	(API) create REF-1 v2	v2 Pending; v1 becomes Superseded with note 'Superseded by version 2.'

Adjustments

Action	When	What you do	What happens
HR adjustment to a frozen period	September run frozen; HR then approves 2 more unpaid leave days for A in September	Open Adjustments; freeze the October run	Adjustment Queued with Effect on pay -(15,000 / 30 x 2) = -1,000.00 (RETRO_DEDUCTION); October run takes it (In a run), payslip line source 'adjustment', review exception 'Supplemental adjustment for period 2026-09: ... Review before approving.' Original September run untouched
Adjustment that cannot be priced	Package without RETRO_PAY / RETRO_DEDUCTION, or no September snapshot	Freeze the next run	Adjustment shows 'Cannot price'; the employee is held back with a blocking exception until it is fixed or voided
Void an adjustment	Queued adjustment; user with payroll.approve	Void with a reason of 5+ characters	Status Void with the reason; it is never paid

Eligibility

Action	When	What you do	What happens
Check eligibility	HR activated 3 employees; one has no bank, one invalid IBAN	Check eligibility	Eligible / Blocked rows with reasons: not activated, has left, no active contract, no bank account, invalid IBAN, no pay group, ambiguous pay group. A replayed HR event changes nothing

Final settlements

Action	When	What you do	What happens
Settlement is created from an HR termination	HR completes a termination of employee L (resignation, last day 15 Oct 2026)	Wait a minute (HR scheduler) or press Check for terminations	Exactly one Draft settlement PST-... for that termination; pressing again creates no second one

Settlement record

Action	When	What you do	What happens
Calculate a settlement (DEMO policy)	L: BASIC 10,000, HOUSING 4,000, TRANSPORT 1,000; joined 1 Oct 2023; 10 leave days due; last paid period September	Calculate	Unpaid salary 1-15 Oct by the package proration (15/31 x 15,000 = 7,258.06); leave 10 x 0.5 x (15,000 / 30) = 2,500.00; end of service 3 completed years x 3 x (10,000 / 30) = 3,000.00 (DEMO values); every line has steps
UAE gratuity reading	A policy whose end_of_service component uses quantity source 'ae_gratuity_days' (API) and a per-day rule basic / 30	Calculate for service of 2,738 days (7 years 6 months), BASIC 10,000	Gratuity days = 5 x 21 + 2.5014 x 30 = 180.04; amount = 180.04 x 10,000 / 30 = 60,013.70. Under 365 days = 0; never above 720 days (2 years' wage); unpaid absence days are not service
Not configured component	Policy names notice_pay but the package has no rule for NOTICE_PAY	Calculate	Line 'Not configured - specialist rule required' (no guessed or zero figure); it must be acknowledged at sign-off
Recoveries and netting	HR marked a loan of 3,000 (1,000 repaid) and a laptop worth 1,500 'recover from final pay'; cap 50%	Calculate	Loan 2,000 and asset 1,500 netted in priority order within 50% of the settlement after statutory deductions; any rest shown as Unrecovered (pursue outside payroll) and a finding
Send for review and sign off	Calculated, no blocking findings; specialist S	Preparer: Send for review; S: Sign off with notes	State In review then Reviewed; preparer cannot sign off ('A settlement is reviewed by a specialist other than the person who prepared or sent it.')
Return to preparer	In review	S: Return to preparer with a reason	Back to Calculated; sign-off cleared; reason shown 'Last sent back by the specialist'
Approve creates the final run	Reviewed; approver A (not preparer, not specialist)	Approve	State Approved; final run (type Final settlement, one payslip) created and linked; smart button Final run opens it
Post, pay, file, close	Approved settlement	Finance: Post; payer (4th person, pay_prepare): Raise payment; prepare file; finance: release; bank accepted	Posted (one journal), instruction raised, file released, settlement Paid when the bank accepts; Close -> Closed
Dispute hold blocks	HR places a dispute hold on L	Try Approve, Raise payment, Prepare file, Release	Each refused with the hold text; banner 'Approval and payment are blocked until every hold is released in HR.'
No double pay with a regular run	Settlement approved for October (final run covers 1-15 Oct)	Freeze the October regular run	L gets blocking 'Period 2026-10 is already paid by the final settlement PST-... (...); paying it here as well would pay the same days twice.'
Cancel and reopen	Calculated settlement	Cancel with reason; then Reopen	Cancelled; Reopen -> Draft. After approval: 'A settlement that reached a run cannot be reopened.'
Print statement	Calculated settlement	Print statement	Bilingual statement: termination, service, unpaid periods, earnings, deductions, recoveries, totals, not-configured notes, approvals, DEMO banner if demo

Payment files

Action	When	What you do	What happens
Release a file (second person)	File prepared by P	Finance F: Release to bank	State Released; P could not release it; a changed bank account withdraws the file 'The file was withdrawn: bank details changed before release.'
Record the bank's answer	Released file	Bank accepted all (or Bank rejected all)	File and instructions Accepted (or Rejected); partial answers via API give Partial; an accepted instruction cannot be reversed
Repair a rejected instruction	Rejected instruction; employee bank corrected	Repair	New instruction PI-...-2 'A new instruction was raised; payroll was not rerun.'; payslip, journal and net unchanged
Cancel a prepared file; download	Prepared file	Download file; then Cancel file	Downloaded bytes match the SHA-256 shown; after cancel the instructions return to Pending; a released file cannot be cancelled

End-of-service provisions

Action	When	What you do	What happens
Propose a monthly provision	Employees: X joined 1 Apr 2019 (BASIC 10,000), Y joined 1 Jan 2026; accounts 620200 / 240200 exist	Month end 2026-09-30; Work out the provision	X: service days counted to 30 Sep; gratuity days by the 21/30 rule; provision = days x 10,000 / 30. Y: under one year -> 0.00. Charge = provision - last posted. Disclaimer about specialist approval shown
Post by a second person	Proposed run by P	P tries Post; finance F posts	P refused 'A provision is posted by somebody other than whoever proposed it.'; F posts: journal Dr 620200 / Cr 240200 for the charge
Leaver's provision released and roll-forward	October: X has left	Propose and post October; open roll-forward Jan-Oct	X: provision 0.00, charge = minus the previous ('left: provision released'); roll-forward opening + charges = closing and agrees with ledger 240200

Payroll register

Action	When	What you do	What happens
Register reconciles	Posted runs	Open Payroll register; filter one run	Banner Gross - Deductions = Net (reconciles); Employer cost separate; totals follow the filter

Variance and exceptions / Payment status

Action	When	What you do	What happens
Reports	Runs with exceptions and instructions	Open both reports; filter by run and status	Rows and counts match the run records

Rule packages

Action	When	What you do	What happens
Install the DEMO package	No DEMO-AE yet	Install DEMO package	Draft DEMO-AE v1 with 17 elements (BASIC, HOUSING, TRANSPORT, OVERTIME, BONUS, RETRO_PAY, RETRO_DEDUCTION, LOAN_RECOVERY, ...) and 5 rules; draft DEMO-SETTLE policy; accounts 2200/2210/2220/5210/5220 created; red DEMO chip
Create a package		New package: code AE-STD, name, effective 2026-10-01, legal source, net pay account 2200, basis Calendar; Create draft	Draft v1 opens; 'Before it can be approved:' lists 'Add at least one pay element.'

Rule package record

Action	When	What you do	What happens
Add elements and rules	Draft package	Add element BASIC (earning, 5210, prorate); Add rule DEDUCT percent of gross 5 (needs element DEDUCT first)	Rule refused until the element exists ('Add the pay element to the package first.'); then listed with parameters
Validation before approval	Draft with an element lacking an account and a floor above cap	Look at 'Before it can be approved'; try Approve	Every problem listed; Approve refused 'The package cannot be approved yet.' with the list
Approve (second person) freezes the package	Valid draft authored by P	Rules approver A: Approve package; then try Add element	Approved, content hash shown; Add element/rule hidden; API refused 'An approved package is immutable. Create a new version to change it.'
New version	Approved v1 (no end date)	New version	Draft v2 copy of v1 (elements and rules), effective from today if v1 has no end date, otherwise day after v1's end
Overlapping versions refused	Approved v1 open-ended; draft v2 from today	Approve v2	Refused 'Version 1 is still in force over these dates. Close its end date first.'; after closing v1 (API close-window, rules_approve) v2 can be approved
Rule order and cap/floor in a run	Package: OVERTIME 10, DEMO_DEDUCTION 20 (2% of gross, cap 500)	Gross 30,000 in a run	2% = 600 -> capped at 500.00 with step 'capped at 500'
Rounding	Draft version with rounding 'down', 0 places	Calculate a run with BASIC 10,000 and 1/3 proration	3,333.33... -> 3,333 (down, 0 places); the unrounded value kept beside the rounded one
Changed package is caught	(DB) edit an approved package's rule amount	Freeze or calculate a run	Refused 'Rule package DEMO-AE v1 no longer matches the content that was approved. It will not be used.' / 'The rule package used to freeze this run has changed.'

Pay elements

Action	When	What you do	What happens
Elements list	Two package versions	Open Pay elements; group by Package	Each element shows its package version and status

Pay groups

Action	When	What you do	What happens
Create a group		New group MONTHLY, AED, package DEMO-AE	Listed with frequency monthly and 0 named members
Named members limit the run	Group with 2 named members (API)	Freeze a run	Only those 2 are in the run (even if their contract currency differs - then a currency block)

Pay periods

Action	When	What you do	What happens
Create periods	Group MONTHLY	New period 1-30 Sep, cutoff 25 Sep, pay 28 Sep; then 1-31 Oct	Codes 2026-09 and 2026-10; an overlapping one refused; runs list shows Cutoff and 'passed' after 25 Sep while Draft

Settlement policies

Action	When	What you do	What happens
Create and approve a policy	Users P (configure) and A (rules_approve)	P: New policy AE-SETTLE, package DEMO-AE, categories Resignation + End of contract, components unpaid_salary, leave_encashment (LEAVE_ENCASHMENT), end_of_service (END_OF_SERVICE, 365 min); A approves	Draft then Approved and immutable; P cannot approve ('...somebody other than its author.')
New version supersedes	Approved AE-SETTLE v1 from 1 Jan	New version; effective 1 Nov; approve	v2 Approved; v1 Superseded and ends 31 Oct automatically
Category overlap between two codes	Approved policy X covers Resignation	Approve policy Y also covering Resignation over the same dates	Refused 'Policy X v1 already covers resignation over these dates. Two policies for one category cannot overlap.'

Payroll app configuration

Action	When	What you do	What happens
Turn off Pay adjustments	Admin A proposes, admin B approves	Features: Pay adjustments off; propose; approve	Menu Pay inputs > Adjustments gone; Void refused 'capability_disabled'; existing rows readable
Turn off Payment instructions and bank files	As above	Turn off; open a posted run	Payment files menu gone; raising instructions / preparing / releasing files refused; files list still readable
Field rules		Set Input cutoff date = Required; New period without cutoff. Set Pay input source reference = Hidden; New input with a reference	Period refused without cutoff; input refused when a reference is sent; field hidden on the dialog

Updated 3 October 2026