Reimbursement is the amount paid to an employee in lieu of expenses incurred due to a company project/assignment. The employee should produce the required bills and receipts. It is not part of the compensation or salary.

To create a reimbursement component for travel reimbursement, food reimbursement, etc, please follow the below steps:

 

On the home page click the settings icon on the right-hand side.

 

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Click “Salary Components”.

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Click “New”.

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Enter the following information to create the component.

 

 

Name

Transport Reimbursement

Abbreviation

TR

Paid Component

Yes (if you don’t want to show this component in payslips then do not check the box)

Pay Type

Reimbursement

Tax Status

Non-taxable

Calculation Type

Flat

Map To

-

Round off Value

Nearest to INR 1/-

Component Type

Variable

Is FBP component

No

Attendance Dependent

No

Part of CTC

No

Active

Yes

Is an FFS component

No

 

 

 

Click “Add”.

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Once the component is created, it should be assigned to the employees so that this becomes part of salary. 

Go to Employees > Payroll Settings > Salary Components 

Click “Pay Allocation

 
 
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To know more about allocating salary components, please go to “How to allocate the salary component”.

Click on the below link to access the same.

How to allocate a pay component : Help Center (freshdesk.com)