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Employee Payment Method

Employee Payment Method is the complete banking instruction for one man: whether he is paid by bank or in cash, and if by bank, every detail the bank file needs - account number, IBAN, SWIFT code, branch and currency.

Where
Payroll › Employee Payment Method
Who uses it
The HR officer or the payroll officer, once per employee
When
Before the first salary payment, and again whenever the employee changes bank
Needs first
The employee record, the Bank list, the Currency list and the Payment Method list

What it is for​

Employee Bank Details holds a bank and an account number. That is enough for a local transfer at a bank the company already deals with. It is not enough for a foreign remittance, for a bank that wants an IBAN, or for a client whose bank file is built from branch codes.

This screen holds the full instruction. It is organised in two parts: Basic Data, which is the employee and the name on the account, and Bank Account Details, which is everything the bank itself asks for.

Nothing on this screen is calculated. It is a record of what the employee and his bank told you. Type it exactly as they wrote it. An IBAN with a transposed digit is a failed transfer and a man without his pay.

Every field, in plain words​

Basic Data​

FieldWhat it meansWhat to put in itNotes
EmployeeThe man this instruction belongs toNadia QureshiRequired. Pick her from the list
NameThe employee's nameNadia QureshiFills itself from the employee. Leave it
Payment MethodHow this man is paidBankPick it from the list. Two values: CA Cash, for a man paid over the counter, and BK Bank, for a transfer
BankThe bank to pay intoMeezan Bank LimitedPick it from the Bank list. Leave it empty for a man paid in cash
CurrencyThe currency of the accountPKRPick it from the Currency list. Only set something other than the company currency if the account really is a foreign currency account
Account HolderThe name the account is registered inNadia QureshiType it exactly as the bank holds it. A joint account or a maiden name is the usual reason this differs from the employee name

Bank Account Details​

FieldWhat it meansWhat to put in itNotes
Bank Account NumberThe account number at that bank0123-7901-4455-01Type it as the bank wrote it
IBANThe international account numberPK36SCBL0000001123456702Needed for most Pakistani bank transfer files. Twenty four characters, no spaces
Swift CodeThe bank's international identifierSCBLPKKXNeeded for a foreign remittance. Leave it empty for a local transfer
Bank Account TypeThe kind of accountCurrentType what the bank calls it, for example Current or Savings. The system does not restrict what you write here and does not act on it
Routing Number TypeWhich kind of routing identifier the Routing Number holdsSCPick it from the list. See the note below the table
Routing NumberThe routing identifier itself012345678Only needed where the bank file asks for one. Say which kind it is in Routing Number Type
Branch NumberThe branch code0123Off the bank letter or the cheque book
Branch NameThe branch in wordsGulberg III, LahoreUseful on a cheque payment, so the cashier knows where to present it
Branch Location CodeThe bank's own code for the branch locationLHR-0123Only fill it if the client's bank file needs it

Routing Number Type accepts these values: AT, BL, CC, CP, CH, FW and SC. The system carries the codes only, with no description against them, so pick the one the client's bank names in its own file specification. If the bank does not ask for a routing number, leave both this and Routing Number empty.

How to configure it​

  1. Make sure the bank exists in the Bank list and the currency exists in the Currency list. A missing bank cannot be typed in here.
  2. Open the screen and pick the employee.
  3. Set Payment Method. For a man paid in cash, pick Cash, save, and stop. The rest of the screen is for a bank transfer.
  4. Pick the Bank and the Currency.
  5. Type the Account Holder name as the bank holds it.
  6. Go to Bank Account Details and type the account number and the IBAN. Copy them from the bank letter, not from the joining form.
  7. Add the SWIFT code only if the man is paid outside Pakistan.
  8. Fill the branch fields if the client's bank transfer file uses them. If you do not know, leave them empty - an empty branch code is better than a wrong one.
  9. Save.
  10. Open his Recurring Payments and Deductions record and set Payment Method, Bank and Account to match. That is the copy the payroll run reads.

Scenarios​

One man is paid by cheque while everyone else is paid by bank transfer​

There is no Cheque method on the list. The two methods are Cash and Bank. Pick Cash for him, which keeps him out of the bank transfer file, and fill in Branch Name so the person writing the cheque knows which branch to draw it on. Then set the same Payment Method of Cash on his Recurring Payments and Deductions record, otherwise the payroll run will still treat him as a bank payment.

We pay one expatriate in dollars into an overseas account​

Set his Currency to USD, fill the SWIFT code, and fill the IBAN if his bank uses one. The payroll itself still computes his pay in the company currency. This screen only tells the bank where to send it.

We have both this screen and Employee Bank Details filled and they disagree​

Decide which one the client's bank file is built from and make that the master. The payroll run itself reads neither: it takes the paying bank and account from the employee's Recurring Payments and Deductions record.

What it is connected to​

If something looks wrong​

  • "The employee list is empty" - the employee has no organization assignment yet, so he is not ready for payroll screens.
  • "The transfer was rejected by the bank" - check the IBAN character by character, and check that the Account Holder name matches the bank's own record.
  • "He was paid into the old account after we updated this screen" - the payroll reads the account off his Recurring Payments and Deductions record, not this one.