How to Enable and Use the Payroll Feature in Qoyod

How to Activate and Use the Payroll System in Qoyod

First: What is Meant by Activating the Payroll Feature?

Activating the payroll feature is a mandatory step that is performed only once when you start using the payroll module.

The purpose of activation is not to create payrolls directly, but rather to:

• Configure payroll settings

• Link payroll to the correct accounting accounts

• Determine the payroll calculation method (direct or indirect cost)

• Link:

  • Salaries (creditor accounts, direct and indirect costs)

  • Deductions

  • Bonuses

  • Advances

  • Social Insurance

• Set up work schedules

Without this step, you cannot create a payroll run or perform any payroll operations.

Second: Steps to Activate the Payroll Feature for the First Time

1) Activate Initial Settings

• From the main menu, select Payroll

• Click Activate Features

2) Choose Work Schedule

• You can customize the schedule according to your needs.

• Or pre-made schedules will appear (offices, stores, morning factory schedule, evening factory schedule)

• You have the option to:

  • Choose a pre-made schedule

  • Or click Customize Schedule and create your own

• After choosing, click Continue

3) Configure Payroll Settings

On the settings configuration page, you specify:

• Salary components – select accounts (employee accruals, direct cost, indirect cost, bonuses, deductions, social insurance for Saudis and non-Saudis)

• The accounting accounts linked to each component

• Account for accrued payroll within current liabilities

4) Determine the Type of Payroll Cost

Determine whether the employee’s salary is:

• Direct cost
  For example: factory worker
  → Charged to an expense account (salaries and wages)

• Indirect cost
  For example: manager or administrative employee
  → Charged to an expense account (salaries and administrative fees)

5) Bonuses and Deductions

• Each type of bonus or deduction is linked to the appropriate account according to the organization’s policy

6) Social Insurance (Optional)

• They can be added during activation or later

• When adding them:

  • Specify the creditor account (insurance payables)

  • And specify the expense account (social insurance expenses)

Not adding insurance does not prevent payroll from running.

7) Pay Cycles

• Determine the payroll delivery time (monthly, weekly, etc.)

• Click Continue to save the settings (after completion, you can edit all these settings later from:

Settings → Payroll Settings

After that, you will be directly redirected to add the first employee.

Third: Is There an Accounting Impact Upon Activation?

No
Activating the payroll feature does not create any accounting entries.

The accounting impact only begins when:

• Creating a payroll run

• Adding a bonus

• Adding a deduction

• Adding an advance

Fourth: When and How is the Accounting Entry for Payroll Created?

When creating a payroll run:

• An accounting entry is created automatically

• The entry records payroll accrual

• Entry date:

  • The last day of the month for which the payroll is created

• It is created:

  • Whether or not the payroll has been paid

When paying the payroll:

• Another accounting entry is created automatically

• The entry records payment

You can review all entries from:
Reports → Journal

Fifth: Can Payroll Entries Be Modified?

Automatic entries cannot be modified directly.

If there is an error:

1. Go to Settings → Payroll Settings

2. Edit the accounts linked to payroll components

3. Delete the payroll run

4. Recreate the payroll run

If you delete a paid payroll run:

• Employee payment vouchers are automatically deleted

Sixth: Cost of the Payroll Feature in Qoyod

• Annually: SAR 120 per employee (excluding tax)

• Monthly: SAR 10 per employee (excluding tax)

Cost is calculated based on the number of active employees only
Archived or deleted employees are not counted in future periods

Purchasing Additional Payroll Packages:

• Settings → Subscription Settings

• Current Add-ons tab

• Click New Additional Package

• Choose payment method (electronic or bank transfer)
• Accept the terms

• Proceed with payment

Seventh: Can It Be Reversed or Stopped?

• There is no “Deactivate” button

• But you can:

  • Archive all employees

  • Not create new payroll runs

• Previous data remains saved for accounting purposes

Eighth: Complete Payroll Training Course

There is a comprehensive practical guide covering everything about payroll:

Course link:
https://www.youtube.com/watch?v=Aa-WZ-WVWLI

Course Topics:

• 1:25 Activating the Payroll Feature

• 6:39 Adding a New Employee

• 14:04 Social Insurance Plan

• 15:46 Work Schedules

• 18:48 Employee Vouchers

• 21:50 Termination and End of Service Award

• 27:53 Advances

• 32:04 Deductions

• 36:05 Creating a Payroll Run

• 44:55 Payroll Reports

For quick access:

• Open the link

• Play the video

• Jump directly to the desired minute