Loss of Pay is the leave taken by an employee when an employee has exhausted all leave balances. If an employee has no leave balance and still avails leave, that leave taken will be considered a Loss of Pay.
Loss of Pay (LOP) Adjustment: If LOP has been wrongly considered in the previous months, we need to use LOP Adjustment or LOP Reversal to set the difference in the current month.
E.g., The LOP for an employee for July is 5 days, but the LOP considered in the July payroll was 7 days which means 2 days of excess LOP has been wrongly deducted.
When processing the August payroll, the 2 days of excess LOP will be adjusted against the LOP for August.
To update the Loss of Pay (LOP) Reversal units
Go to Transactions >> Leave Management and click on Loss of Pay Adjustment
Click on ‘New’ to add a record.
Enter Employee Code and click on “Get” to fetch the employee record
Select Method i.e., Payment or Recovery
Select Processing Month (the month in which you want to reverse LOP).
Select Processed month (the month in which the LOP was deducted/paid incorrectly)
Click on ‘Add’.
Note: The system will validate if there has been a LOP entry in the ‘Processed Month’.
If there is no LOP entry, the error message “No LOP days for selected months’ will be displayed.
Click on “Process” to calculate the arrears/recovery
Once the process is completed the payment details will be displayed.
Click on ‘Save’
“Run payroll” to view this calculation in Salary Statement.
To import in bulk for the employee's LOP reversal please click on “Bulk import”
Download the template and fill in the details and import the excel sheet
Click on "Bulk Import"
Click on "Choose file"
Select the saved file and click on "Import"