QBM Payroll User Guide

A practical, end-user guide for setting up payroll items, entering payroll transactions, processing payroll entries, and reviewing payroll reports in the Employees module.

Module: Employees
Covers: Payroll Items • Payroll Transactions • Payroll Entry • Reports
Audience: Payroll Admins

1. Overview

QBM payroll processing is based on three building blocks:

Payroll Items Defines what can be paid or deducted (earnings, deductions, allowances, reimbursements).
Employee Payroll Setup Defines employee rates and work parameters used for calculations (hourly rate, hours per day, etc.).
Payroll Entries & Transactions Where you record payroll activity, compute amounts, and produce reporting outputs.
Recommended workflow:
  1. Set up employee pay settings (rates, hours, pay period).
  2. Create payroll items (income and deductions) and connect them to the correct accounts.
  3. Assign payroll items to employees (default amounts where applicable).
  4. Use Payroll Transactions Entry for detailed transactions and bulk imports when needed.
  5. Use Payroll Entry to process payroll for a pay period and produce final totals.
  6. Review results using payroll reports.

2. Key Concepts

2.1 Payroll Items (Income vs Deduction)

A Payroll Item is a reusable component that represents an amount that will be included in payroll. Each payroll item is classified as one of:

  • Income — increases employee pay (e.g., salary, hourly pay, allowance, reimbursement).
  • Deduction — reduces employee pay (e.g., loan repayment, advance repayment, penalties).

2.2 Pay Codes

Each payroll item has a Pay Code that describes how it behaves and how it is calculated or reported. Common pay codes supported include:

Pay Code Typical Use How Amount Is Usually Determined
Hourly Regular hourly wages Hours × employee regular hourly rate
Salary Salaried wages for a period Based on the pay period date range and employee work settings (see calculations section)
OverTime Overtime wages Overtime hours × employee overtime hourly rate
HolidayOvertime Holiday overtime wages Overtime hours × employee holiday overtime rate
Commission Commission payments Typically derived from a base amount × commission % (implementation may vary by configuration)
Vacation / Sick / Holiday Paid leave categories Typically uses hours or days × employee rate (depending on policy)
BusinessExpense Reimbursements / business expenses Entered as a fixed amount per entry
ChargedTips Charged tips Entered as a fixed amount per entry
Others Any custom payroll item Entered as a fixed amount or imported via Excel
Important: Some pay codes (especially Salary, Hourly, OverTime, HolidayOvertime) depend on employee pay settings (rates and hours) and the pay period date range. If those are missing or incorrect, calculated amounts can be wrong or zero.

2.3 Payroll Transactions vs Payroll Entry

Payroll Transactions Entry

Used to record detailed payroll activity with start/end dates, hours, jobs, and descriptions. It also supports Load from Excel for bulk entry (for example: timesheets, overtime logs, allowances, deductions).

Payroll Entry

Used to process payroll for an employee for a pay period. It supports Auto Fill Items (based on assigned payroll items) and includes a “Calculate” function to compute salary/overtime behaviors for the selected period.

3. Employee Payroll Setup

Before processing payroll, confirm each employee’s pay setup is correct. Employee pay settings define the values used by payroll calculations.

3.1 Where to set it

Open the employee record in Employee Details (Employees module), and navigate to the payroll/pay setup area.

3.2 Payroll fields you must maintain

Field Meaning Why it matters
Pay Period Defines employee pay schedule (for example: monthly, weekly, etc.) Used with Begin/End dates for salary calculations and payroll planning
Period Salary Pay per period (if salaried) Used for payroll references and rate derivation
Yearly Salary Annual salary (if applicable) Used for payroll reporting and internal planning
Regular Hourly Rate Base hourly rate Used for Hourly and Salary calculations
Overtime Hourly Rate Overtime rate Used when overtime hours are present
Holiday Overtime Hourly Rate Holiday overtime rate Used for HolidayOvertime pay code items
Hours Per Day Standard work hours per day Used to compute salary hours for a date range
Hours Per Period Standard hours per pay period Used to decide normal hours vs overtime thresholds
Last Pay Date Last payroll processed date Useful for payroll tracking and audit flow
Automatic rate behavior (common): When creating a new employee, if you enter Period Salary and Hours Per Period, QBM can derive a regular hourly rate: Regular Hourly Rate = Period Salary ÷ Hours Per Period This helps keep rate data consistent.
Defaulting behavior: If you enter common values like Hours Per Day / Hours Per Period / Pay Period, QBM may save them as company defaults to speed up new employee creation. Always review per employee and adjust if needed.

4. Payroll Items Setup

Payroll items are managed from Payroll Item Details. You typically create payroll items once, then reuse them across employees and payroll runs.

4.1 Create a payroll item

  1. Open Payroll Item Details.
  2. Enter Name (clear, user-friendly), and Code (short identifier).
  3. Select Type: Income or Deduction.
  4. Select an Account (used for posting and reporting).
  5. Select a Pay Code (controls calculation and reporting grouping).
  6. Enter an optional Description.
  7. Mark as Inactive if you no longer want this payroll item available for new entries.
  8. Click Save and Done.
Account selection matters: Use accounts that match the business meaning of the item. For example, a reimbursement should not be posted to the same account as wages. If you are unsure, ask your accountant or QBM support.

4.2 Suggested payroll items (starter set)

Payroll Item Type Pay Code Typical Account Purpose
Regular Wages Income Hourly or Salary Wages Expense / Salary Expense
Overtime Income OverTime Overtime Expense
Holiday Overtime Income HolidayOvertime Overtime Expense
Allowance (e.g., Housing/Transport) Income Others Allowance Expense
Reimbursement Income BusinessExpense Expense Reimbursement
Loan Repayment Deduction Others Employee Loans Receivable (balance reduction)
Advance Repayment Deduction Others Employee Advances Receivable (balance reduction)

5. Assign Payroll Items to Employees

After creating payroll items, you must assign them to employees. Assignment defines which payroll items appear during payroll processing and can store employee-specific default amounts.

5.1 Assign employees from Payroll Item Details

  1. Open the payroll item in Payroll Item Details.
  2. Click Assign Employees...
  3. Select one or more employees.
  4. Enter the default Amount per employee if applicable (for fixed amounts such as allowances, repayments, recurring deductions).
  5. Save your changes.
When to set an amount at assignment time:
  • Fixed recurring amounts (e.g., monthly allowance, loan repayment amount).
  • Recurring deductions (e.g., advance repayment).
  • Do not rely on assignment amounts for items that are primarily calculated from hours and rates (e.g., hourly wages, salary). For those items, focus on employee rates/hours and the pay period date range.

6. Payroll Transactions Entry

Payroll Transactions Entry is used for detailed payroll transaction records. It is especially useful when:

  • You need to record payroll items across a date range (start/end).
  • You track payroll by job/project (job costing).
  • You import time/allowances/deductions in bulk using Excel.

6.1 Enter a transaction manually

  1. Open Payroll Transactions Entry.
  2. Select Date (transaction date) and Location (if required).
  3. Select Pay From / Begin Date and End Date if your payroll policy uses ranges.
  4. On the items grid, choose:
    • Employee
    • Payroll Item
    • Start and End (for the line)
    • Job (optional)
    • Days / Weeks / Hours / Overtime Hours (as applicable)
    • Amount (for fixed items)
    • Description
  5. Save using Save and Done or Save and New.

6.2 Load from Excel

Use Load from Excel... when payroll data is prepared in spreadsheets (timesheets, overtime logs, allowances, deductions). After importing, review each row for employee, payroll item, hours, and amounts before saving.

Tip: Keep payroll item Codes consistent to reduce import errors.

6.3 Filter and clear

  • Filter... helps you locate transactions by employee, payroll item, date ranges, etc.
  • Clear clears grid input when you want to restart entry.

7. Payroll Entry Processing

Payroll Entry is the primary screen for processing payroll for a pay period. It allows you to bring in assigned payroll items, calculate amounts, adjust values, and save a payroll entry transaction.

7.1 Create a payroll entry

  1. Open Payroll Entry.
  2. Confirm header details:
    • Date
    • Employee
    • Begin Date and End Date (pay period coverage)
    • Location (if applicable)
    • Reference / Transaction # (if required)
    • Account and Type (if your accounting policy requires selection)
  3. Click Auto Fill Items to load items assigned to the employee.
  4. Review the generated lines and adjust:
    • Hours and Overtime Hours
    • Days / Weeks (if used)
    • Amount for fixed items
    • Job (optional)
    • Description
  5. Use Calculate (available on the screen menu) to recompute calculated lines when dates/hours change.
  6. Click Save (or Save and Done / Save and New).
  7. Enable Print after saving if you want an immediate printout.
Auto Fill behavior: If existing lines are present, QBM may ask whether you want to clear the list before auto-fill. Clearing is recommended when you want a clean re-generation from the latest assignments and employee settings.

7.2 What the payroll entry lines mean

Payroll Entry lines commonly include:

Column Meaning
Payroll ItemThe income/deduction item applied
JobOptional job/project allocation
Days / WeeksOptional entry metrics (depends on payroll policy)
HoursWorked/paid hours (regular)
Overtime HoursOvertime hours used for overtime calculation
AmountFinal amount for the line (computed or manual)
DescriptionNotes for audit and clarity

8. Overtime & Salary Calculations

QBM can calculate common payroll items using employee pay settings and the pay period date range. This section explains what you must maintain for accurate results.

8.1 Salary calculation depends on Begin/End dates

For items using the Salary pay code, QBM may compute total days from Begin Date to End Date, and then derive total hours using Hours Per Day.

Practical implication: If Begin/End dates are not set correctly, salary hours (and therefore salary amount) can be incorrect.

8.2 Overtime behavior uses Hours Per Period

When salary lines include hours that exceed the employee’s Hours Per Period, QBM can treat the excess as overtime hours and apply the overtime rate (and, where applicable, holiday overtime rate).

8.3 Monthly pay periods and daily rate

If an employee uses a monthly pay period and the daily rate is not explicitly stored, QBM may calculate a daily rate for the selected date. If you have a specific policy for daily rate (fixed vs calculated), ensure it is configured consistently for your employees.

9. Employee Loans & Advances

QBM supports employee loans and advance payments through payroll items and payroll entry/transactions. There is no dedicated “Loan Form” required for payroll processing; instead, you record the disbursement and repayment using payroll items.

9.1 Recommended structure

Scenario Payroll Item Type Pay Code Account (recommended concept)
Loan disbursement (money given to employee) Employee Loan (Disbursement) Income Others Employee Loans Receivable (creates/raises balance)
Loan repayment (amount deducted from payroll) Loan Repayment Deduction Others Employee Loans Receivable (reduces balance)
Advance payment (money given before payroll) Employee Advance (Disbursement) Income Others Employee Advances Receivable (creates/raises balance)
Advance repayment (deducted from payroll) Advance Repayment Deduction Others Employee Advances Receivable (reduces balance)
Accounting note: Loans and advances are usually not wage expenses. They are typically tracked as receivables (amounts owed back by the employee). Confirm account selection with your accountant.

9.2 How to record a loan or advance disbursement

  1. Create an Income payroll item (Pay Code: Others) such as “Employee Loan (Disbursement)” and assign the appropriate account.
  2. Open Payroll Entry (or Payroll Transactions Entry if you prefer detailed lines).
  3. Add a line for the employee using that payroll item and enter the Amount equal to the loan/advance paid.
  4. Enter a clear Description (e.g., “Loan issued - Jan 2026 - to be repaid over 6 months”).
  5. Save the entry.

9.3 How to set up repayment through payroll

  1. Create a Deduction payroll item (Pay Code: Others) such as “Loan Repayment”.
  2. In Payroll Item Details, click Assign Employees... and set a default repayment amount for the employee (e.g., 500 per period).
  3. During payroll processing, use Auto Fill Items to bring the repayment deduction into the payroll entry.
  4. Adjust the repayment amount when needed (for partial repayments, final settlement, etc.).
  5. Save the payroll entry.
Operational tip: Keep repayment items separate from wage deductions (such as penalties). This keeps reporting clean and makes balances easier to review.

10. Payroll Reports

Payroll reports help you review payroll setup, analyze transactions by employee or pay code, and audit totals over time. The following reports are typically available in the Employees payroll reporting area.

10.1 Payroll Item List

  • Purpose: Review your payroll items master list (including pay code and description).
  • Filters: Payroll Item, Include Inactive.
  • Use it for: Setup verification, auditing inactive items, confirming coding standards.

10.2 Transactions by Employee (Details / Summary)

  • Purpose: Analyze payroll activity for a specific employee.
  • Filters: Employee, Date Range.
  • Option: “Is transaction date” (when enabled, the date range is applied to transaction date rather than period range).
  • Details report: Shows individual lines (employee, payroll item, hours/weeks, reference).
  • Summary report: Aggregates totals (hours and amounts) for faster review.

10.3 Transactions by Pay Code (Details / Summary)

  • Purpose: Review activity grouped by pay code (e.g., Salary, Hourly, OverTime).
  • Filters: Pay Code, Date Range.
  • Details report: Lists individual transactions contributing to the pay code totals.
  • Summary report: Shows totals by pay code over the selected period.

10.4 Transactions by Payroll Item (Details / Summary)

  • Purpose: Review activity for a specific payroll item (e.g., Loan Repayment).
  • Filters: Payroll Item, Date Range.
  • Use it for: Tracking recurring deductions, verifying allowances, reviewing loan/advance repayments.
Recommended loan/advance audit approach: Run “Transactions by Payroll Item” for the loan disbursement item and the repayment item over the same date range, then compare totals to estimate outstanding balances (subject to your accounting policy and posting configuration).

11. Field Reference (What You See on Screen)

11.1 Payroll Item Details screen

Field Meaning
NamePayroll item name shown in entry screens and reports
CodeShort internal identifier, helpful for imports and standardized setup
TypeIncome or Deduction
AccountAccount used for posting/reporting this payroll item
Pay CodeClassification used for calculation/reporting
DescriptionOptional notes to explain the item
InactivePrevents new use while preserving historical records
Assign Employees...Links payroll item to employees and sets default amounts (when applicable)

11.2 Payroll Transactions Entry grid columns

The transactions grid commonly includes: Employee, Payroll Item, Start, End, Job, Days, Weeks, Hours, Overtime Hours, Amount, Description.

11.3 Payroll Entry grid columns

The payroll entry grid commonly includes: Payroll Item, Job, Days, Weeks, Hours, Overtime Hours, Amount, Description.

12. Best Practices

  • Standardize payroll item codes to simplify reporting and Excel imports.
  • Use “Inactive” instead of deleting payroll items to preserve historical payroll integrity.
  • Maintain employee rates and hours before running payroll. Incorrect settings cause calculation errors.
  • Separate loans and advances into dedicated payroll items with dedicated accounts for clean audit trails.
  • Use descriptions on loan/advance entries to document terms and repayment schedule.
  • Review reports after each payroll run (employee summary, pay code summary, and key payroll item summaries).

13. Troubleshooting

Payroll items do not appear in Auto Fill

  • Confirm the payroll item is assigned to the employee (via Assign Employees).
  • Confirm the payroll item is not marked Inactive.
  • Confirm you selected the correct Employee on Payroll Entry.

Salary amount is zero or too small

  • Confirm Begin Date and End Date are set correctly.
  • Confirm Hours Per Day is set for the employee.
  • Confirm Regular Hourly Rate is set (or derived correctly from salary ÷ hours per period).
  • Use Calculate to recompute after changing dates or hours.

Overtime is not calculated

  • Confirm employee Hours Per Period is configured.
  • Confirm employee Overtime Hourly Rate (and holiday overtime rate if used) is configured.
  • Confirm you entered overtime hours (or hours that exceed the standard period threshold).

Loan/advance repayment not tracked clearly

  • Use separate payroll items: one for disbursement, one for repayment.
  • Use the correct accounts (receivable-style accounts for balances owed back).
  • Use “Transactions by Payroll Item” reports to review totals over time.
If you want this guide to include payroll posting rules and accounting journal behavior: please provide the payroll posting/transaction-save layer (the business facade or store layer that creates and posts payroll entry transactions). With that, the guide can document exactly what is posted, when it is posted, and which accounts are impacted.
QBM Help • Payroll & Employees • End-user Guide