Payroll Module > Step 3 - Edit Menu > Transaction Codes

Add to the list of Transaction Codes any new ones needed by your organization.

To Insert a new Transaction Code

Step 1	Go to the 'Edit' and then 'Transaction Codes' menu options - see the 'Browse Transaction Codes' table showing Transaction Codes that have already been setup in the system
Step 2	Press 'Insert' to add a new Transaction Code,
Step 3	Select the Category required
Step 4	Enter the details of the Transaction Code required

TransactionCodesInsert

NOTE: The descriptions used for the earnings and deductions come through onto the payslip and other reports.

When creating Transaction Codes Belina PayrollHR suggests a Transaction Code number. This ensures that Transaction Codes are well grouped and come through, together with the transaction description, logically onto the payslip. Each earning or deduction has a field for entry of a General Ledger Code that will display on the 'Period Journal report' and be used in the journal exports to accounting programs. If this field is not required, the User may leave it blank.

Setup up to 999 different Transaction Codes to process different earnings or deductions in the payroll.

To enter a Transaction Code

Go to the 'Edit', then 'Transaction Codes' menu options and from the table of current Transaction Codes press 'Insert'. Then enter employee details in each of the fields mentioned in the first tab, the Personal Tab, and each of the other tabs.

To Insert a new Transaction Code

Step 1	Go to the 'Edit' and then 'Transaction Codes' menu options - see the 'Browse Transaction Codes' table showing Transaction Codes that have already been setup in the system
Step 2	Press 'Insert' to add a new Transaction Code,
Step 3	Select the Category required
Step 4	Enter the details of the Transaction Code required

TransactionCodesInsert

NOTE: The descriptions used for the earnings and deductions come through onto the payslip and other reports.

Setup up to 999 different Transaction Codes to process different earnings or deductions in the payroll.

To enter a Transaction Code

Transaction Categories

Transaction Code - Overview of Codes

When you select one of the Transaction Categories to create a Transaction Code Belina PayrollHR allocates a default Transaction Code Reference, grouping the Transaction Codes in a logical order that would also be appropriate for display on the payslip. Earnings are put at the top of the list followed by Allowances, then Deductions.

When creating a Transaction Code the entry may be setup to depend on the one or other Transaction Codes - 'Dependencies'. The Transaction Categories marked with a '√' can be set-up in this manner.

Transaction Category	Default Transaction Code	Dependencies	Description

Allowance -Benefit	150	X	A regular taxable amount paid to an employee to counter the impact of the tax payable on a benefit received. The Benefit Allowance is taxable, as income, Belina PayrollHR takes this into account in the tax calculation. The end result is that the net pay of the individual is the same after processing the benefit and allowance as it was if the employee had not received the benefit and allowance at all.
Allowance - Benefit (Irregular)	160	X	A irregular, possibly a once off, taxable amount paid to an employee to counter the impact of the tax payable on a benefit received. The Benefit Allowance is taxable, as income, Belina PayrollHR takes this into account in the tax calculation. The end result is that the net pay of the individual is the same after processing the benefit and allowance as it was if the employee had not received the benefit and allowance at all.
Allowance - Normal (Irregular)	100	√	A taxable amount paid irregularly. The amount of the allowance is added in the FDS tax calculation, but not projected over the year. The standard amount may come through automatically, or entered during processing.
Allowance - Normal (Regular)	110	√	A taxable amount paid regularly. The amount of the allowance is considered to be a regular payment for FDS tax purposes. The standard amount may come through automatically, or entered during processing.
Allowance - Service	120	X	A taxable amount based on years of service. The value of the Service Allowance is : = Basic x Service Allowance Percentage x Years Service. It is considered to be a regular payment for FDS tax purposes.
Allowance - Shift	130	X	A taxable amount paid for the number of shifts worked. The value is calculated as a percentage of the hourly rate multiplied by the number of shifts worked. It is considered to be a regular payment for FDS tax purposes.
Allowance - Vehicle	140	√	A taxable amount paid to an employee/s regularly. The amount of the allowance is entered when processing and is considered to be a regular payment for FDS tax purposes.

Benefit - Bonus Provision	294	X	If there is a plan to give a bonus at the end of the year and you would like to account for the cost of the bonus on a gradual basis through the year. By creating this code the accounting transactions accrue a balance into the relevant accounts. The transaction does not affect the employee's earnings in the periods it is processed, nor does it affect the taxation calculated and the net pay.
Benefit - Gratuity Provision	292	X	If there is a plan to accrue the cost of gratuities paid for employees that will eventually terminate employment then it is possible to account for the cost of the gratuity bonus on a gradual basis through the year. By creating this code the accounting transactions accrue a balance into the relevant accounts. The transaction does not affect the employee's earnings in the periods it is processed, nor does it affect the taxation calculated and the net pay. Gratuity payments are particularly relevant where contracts are being worked and a gratuity is paid at the termination of the contract.
Benefit - Housing	200	X	The taxable value, only, of housing benefit added to the tax computation. Considered to be a regular payment for FDS tax purposes.
Benefit - Loan	210	X	The taxable value, only, of a loan benefit added to the tax computation. Considered to be a regular payment for FDS tax purposes.
Benefit - Other (Irregular)	220	X	The taxable value, only, of a once-off (irregular) benefit added to the tax computation. The only benefit that is considered to an irregular payment and not projected for FDS tax purposes.
Benefit - Other (Regular)	230	X	The taxable value, only, of a benefit added to the tax computation. Considered to be a regular payment for FDS tax purposes.
Benefit - Vehicle	240	X	The taxable value, only, of a vehicle added to the tax computation. Considered to be a regular payment for FDS tax purposes.

Deductibles - Retirement Annuity

000 ***

Retirement annuity amounts paid by an employee outside the payroll that rank for pension deduction are processed into the payroll as a normal transaction and appear on the payslip. This gives employees assurance that the amount spent has been processed. The amount contributed to the retirement annuity is added to the value of pension contributions made through the payroll. The value of the contributions are deducted from the taxable income before calculating the PAYE amount, subject to limits stipulated by the Minister of Finance

Deduction - Amount	610	√	Deductions from pay with the option of the the amount being taken into account in accumulating a balance for the Transaction Code, or the amount being deducted from a starting balance.
Deduction - Medical Aid	600	√	Medical Aid deductions and contributions taking into account the Medical Tax Credit that may apply.
Deduction - NEC	615	√	NEC contributions to the NEC general fund or NEC death benefits
Deduction - Pension	630	√	Pension and NSSA Pension deductions. The pension tax free deduction will automatically be taken into account.
Deduction - Savings	700	X	Deduction of a specified amount or percentage of basic which is deducted from the employee's net pay and added to the savings balance which is recorded in the Employee Record of the individual which is available draw down upon in accordance with the rules that have set up.
Deduction - Trade Union	650	√	Trade Union contributions.

Earnings - Amount	***	√	Irregular taxable amounts payable to employees.
Earnings - Amount (Non Taxable)	080	√	Payment of a non-taxable amount.
Earnings - Basic	001	X	Payment of a Basic Wage or Salary based on an hourly, daily, or period rate of pay.
Earnings - Bonus	010	√	Payment of an irregular bonus amount, subject to the annual bonus tax free concession.
Earnings - Deferred	035	X	Payment of a lump sum spread over a specified number of periods at a user defined amount per period.
Earnings - Gratuity	030	√	Payment of an irregular amount.
Earnings - Overtime (Irregular)	040	√	Overtime processing with the entry of hours worked and factor to be applied. Since overtime is worked irregularly the amount is not projected in the FDS tax calculation.
Earnings - Overtime (Regular)	050	√	Overtime processing with the entry of hours worked and factor to be applied. Since overtime is worked regularly the amount is projected in the FDS tax calculation.
Earnings - Retrenchment	060	√	Payment of an irregular amount subject to retrenchment tax concessions for retrenchment payments made from a registered scheme of retrenchment.
Earnings - Shorttime	070	√	Shorttime processing with the entry of hours not worked and the factor to be applied since shorttime should reduced overtime hours worked first before being applied to normal hours. The amount is processed as a deduction from Basic Pay.

HR - Assessments	N/A	X	Process an assessment process to employees assessing according to a number of criteria that have been setup
HR - Clothing	N/A	X	Process the issue of various types of clothing and clothing sizes to employees.
HR - Discipline	N/A	X	Process disciplinary procedures against an employee
HR - Promotion	N/A	X	Process promotions that an employee has achieved
HR - Tools	N/A	X	Process tools and other equipment issued to an employee together with serial numbers.
HR - Training	N/A	X	Process training courses that employees have been sent on.

Leave - Pay Recovery	985	X	When leave is paid in advance Belina PayrollHR uses the Leave Pay Recovery code to recover the amount advanced in each subsequent period that the employee is away on leave.
Leave - Annual - Adjustment	360	√	Adjusting the Normal Days leave balance of an employee.
Leave - Annual - CILL	300	√	Pay out the value of leave days being cashed by the employee. The value of the number of days being processed is added to the payslip whilst the number of days is reduced from the leave balance.
Leave - Annual - Days Taken	330	√	Process Normal Days leave taken by an employee. The number of days taken is reduced from the leave balance.
Leave - Annual - Paid in Advance	350	√	Pay the value of Normal Leave days taken as the employee goes on leave. This facility is especially useful in a weekly payroll where the employee receives the full leave payment before proceeding on leave. Use this Transaction Code in conjunction with the Leave Pay Recovery code where the advance is recovered during the period/s when the employee is away on leave leaving a zero net pay.
Leave - Other - Compassionate	310	√	Process Compassionate Leave days taken by employees, if that category of leave is captured by the organization
Leave - Other - Climatic	388	X	Custom leave type that is distinctly unique to NRZ to assist employees that are working in areas where there are hostile climatic conditions.
Leave - Other - Contact	305	X	Custom leave type that is unique to some tertiary institutions.
Leave - Other - Duty	385	X	Custom leave type that is unique to some tertiary institutions.
Leave - Other - Maternity	370	√	Process Maternity Leave days taken by employees applying the rates that are gazetted for the periods of time away.
Leave - Other - Mother's Day	375	X	Mother's day leave is applicable in Zambia where female employees are given one day of leave per month. No balance is maintained it is only available in the month that it accrues.
Leave - Other - Occassional	320	√	Process Occasional Leave days taken by employees, if that category of leave is captured by the organization
Leave - Other - Other	340	√	Process Compassionate Leave days taken by employees
Leave - Other - Sabatical	315	X	Custom leave type that is unique to some tertiary institutions.
Leave - Other - Sick	380	√	Process Other Leave days taken by employees, if there is no existing category that adequately describes the type of leave awarded by the organization.
Leave - Other - Special	311	X	Special leave gazetted where a maximum of 12 days per annum can be utilized to attend funerals, quarantined, or detained by the police. No balance is kept or carried over to the next year.
Leave - Other - Study	390	√	Process Study Leave days taken by employees, if that category of leave is captured by the organization
Leave - Other - Unpaid	395	√	Process Unpaid Leave days taken by employees, if that category of leave is captured by the organization. This type of leave is where the value of the unpaid leave days is deducted from the Basic Pay that the employee would normally receive.

Loan	500	X	Process loan amounts that have been extended to employee outside the payroll, but where the repayments are to be recovered through the payroll taking into account the loan balance, interest rate and number of repayments that apply to the loan.
Loan Adjustment	550	X	Process adjustments to the loan that may be necessary during the course of the loan through repayments made outside the payroll, or changes that need to be effected to alter the loan balance.

Net Pay Adjustment

975

√

Process a Net Pay Adjustment to allow a second payment to staff during a period. The Net Pay Adjustment brings the Net Paid to Zero allowing for the processing of new transactions and the calculation of another Net Paid amount.

Other - Employer Contributions	400	√	Process transactions for employees that affect the Employer only.
Other - Medical Expenses	000	√	Medical Expenses, incurred by an employee, are processed into the payroll as a normal transaction and appear on the payslip. Does not affect the Net Paid, other than through the reduction of the PAYE amount as the effect of the tax credit is felt.
Other - Mileage	420	√	Process mileage and other taxable payments to employees, using a rate per unit.
Other - Mileage (Non Taxable)	430	√	Process mileage and other taxable payments to employees, using a rate per unit
Other - Negative Pay	955	X	Negative Pay occurs when an employee's deductions exceed income. Belina PayrollHR advances the amount necessary to bring the Net Paid to Zero. The payroll then endeavours to recover the advance in subsequent period/s under Negative Pay Recovery.
Other - Negative Pay Recovery	965	X	In the period after there has been a Negative Pay amount on an employee's payslip Belina PayrollHR recovers the advanced amount. If deductions, including the Negative Pay Recovery, again exceed income then Belina PayrollHR will continue to extend negative pay amounts until the shortfalls are recovered.
Other - Net Paid	980	X	Belina PayrollHR uses this code for the Net Pay that an individual will receive.
Other - Rounded Pay	970	X	Belina PayrollHR allows the User to round the amount computed on each Transaction Code and the employee's Net Paid amount to the lowest denomination set up in the coinage table. In all instances the rounding increases the amount paid to the employee.
Other - Rounded Pay Recovery	960	X	Belina PayrollHR gives the option of recovering rounded pay in the next period.
Other - Transaction Reference	015	X	Use this transaction code to record a value which is used by other transaction codes to calculate an amount. The value used in the transaction code is not added directly to the payslip and does not affect the net pay paid to the employee.

PAYE Calculated

945

The PAYE amount computed for an employee using the Final Deduction System, Forecast or Average method, or the amount computed using the traditional PAYE method are reflected under this code. Belina PayrollHR automatically computes PAYE for all employees on the payroll unless the employee has been set up in the employee master as being on a tax directive.

Payslip Comments

990

This code is used for individual payslip comments for an employee.

Tax - Deductibles	000 ***	X	Process expenses incurred by the employee, outside the payroll, that are tax deductible.
Tax - Levy	946	√	The Aids Levy amount computed for an employee is reflected under this code.
Tax - Levy Adjustment (Current)	942	√	This Transaction Category is to used to process Tax Levy adjustments into the current period to increase or decrease the total deduction this period
Tax - Levy Adjustment (Previous)	943	√	This Transaction Category is to used to process Tax Levy adjustments into the current period that relate to prior year periods. The amount processed does not affect the calculation of Tax in the current period.
Tax - PAYE Adjustment (Current)	940	√	This Transaction Category is to used to process Tax adjustments into the current period to increase or decrease the total deduction this period
Tax - PAYE Adjustment (Previous)	941	√	This Transaction Category is to used to process Tax adjustments into the current period that relate to prior year periods. The amount processed does not affect the calculation of Tax in the current period.
Tax - Refund	948	X	This Transaction Category is used to process tax refunds to employees. The amount is not included in the tax calculation.
Tax Credits	950	√	The value of tax credits computed for the period are reflected on this code and appear on the payslip. This gives the employees assurance that the tax credits have been taken into account.

More information about Transaction Code Setup

Apply TCPL Limit

When setting up the NSSA transaction code, select this option. This will enable system to enable the Transaction code Categories that are consisdered in the calculation in accordance with Statutory Instrument (SI) 169 of 2021 on the 12th of June 2021.

Apply Threshold

When setting up a Transaction Code the deduction, or Employer Contribution can be set to be calculated as a percentage. If this option is selected the amount deducted can be limited to a specific maximum amount, a 'Threshold'. Tick the 'Apply Threshold' check-box to enable the 'Threshold' fields in which the maximum deduction or contribution is entered.

Automatic

Tick to have this Transaction Code come through automatically onto the payslip of a new employee.

Warning:

Transactions that have been set to 'Insert Automatically' will come through onto the new employees Payslip Input automatically. If you do not want this to happen turn off the 'Insert Automatically'. It is not sufficient to delete the transaction on the Payslip Input because when a Calculation Routine is run it will come back again. To prevent this go to to the Edit menu and remove the 'Insert Automatically' tick until processing for that period is complete. It can then be re-inserted before engaging new employees in the next period.

There some transaction codes where the rules applying to 'Insert Automatically can be refined, these are for:

- Basic Note: 'Insert Automatically' rules can be refined for Basic. In this case you can specify that the 'Insert Automatically' only applies to Permanent employees.

- NSSA Note: 'Insert Automatically' rules can be refined for NSSA. In this case you can specify that the 'Insert Automatically' only applies to Permanent employees

Base On

BaseOn

Some Transaction Codes are based on the Basic pay for the employee. This amount could be entered into each employee's masterfile or it could be the amount being paid for that grade as determined by an Internal grading system or NEC grade.

Clear Value

This check-box is used in the setup of Loan Transaction Codes to indicate that the next repayment amount will be entered manually in the next period. The system will automatically readjust the repayment amount and recompute the interest charged. The number periods of the loan is not adjusted.

Code

When a new Transaction Code is Created Belina PayrollHR allocates a default Transaction Code, grouping the Transaction Codes in an order suited for payslip printing. Transaction Codes are presented on the payslip in Transaction Code order. Employees are generally more interested to see their earnings, so the Earnings Transaction Codes are put at the top of the list followed by Allowances, then Deductions. The Transaction Code sequence 900 onwards are mostly reserved for standard Belina PayrollHR Reserved Transaction Codes.

Coinage Rounded

Have the amount calculated for the Transaction Code rounded to the lowest denomination that has been setup in the Coinage Table.

Description

The 'Description' of the Transaction Code comes up on the payslips and is used in reports. It is important that the description is therefore clear for all users of payroll information to understand.

Default Currency

The Default Currency is usually set-up when the payroll is initially created. Belina PayrollHR has been designed to accommodate multiple currencies. This is particularly useful for international organizations that pay their local staff in one currency and their other staff in another. Select the default currency to be applied. In Zimbabwe it would be the US Dollar.

Dependencies

It is possible to have one Transaction Code depend on the value of one or more other Transaction Codes, these are set up as 'Dependencies'.

To set up Dependencies:

Step 1	Create the first Transaction Code (if it has not already been created)
Step 2	Create the Transaction Codes on which the the first Transaction Code is dependent (if they have not already been created)
Step 3	Edit the first Transaction Code. Notice that there is a 'Dependencies' button at the bottom of the form which was not present when the Code was first created. Press this button
Step 4	Tick the dependent Transaction Codes. In the example, below, only one Transaction Code has been ticked.

Percentage	takes a percentage of the value of that Transaction Code
Amount	takes the specified amount into account in the transaction
Apply Highest	takes whichever amount is higher, that amount calculated under 'Percentage' or the 'Amount' entered.
Reverse Sign	If the dependent Transaction Code is a deduction it has a negative sign. To add the value to the list of dependent Transaction Codes you may need to reverse the sign.
Base on Units	You may wish to pick up the units rather than the value of a Transaction Code e.g. you may pay a danger allowance dependent on the number of hours worked on that Transaction Code.

Dependencies

One way of determining whether a Transaction Code has been set up with dependent Transaction Codes is to click on the Transaction Code and observe the colour of the word 'Dependencies'. If the word is in blue there are dependent Transaction Codes, if the word is in black there are none, as illustrated below:

For more information about Dependencies see the Further Topic 'Dependencies'.

Duration

Many of the Transaction Codes can be set-up to come through onto the Payslip Input once, or once every period for a range of periods.

Single	select 'Single' to have the transaction processed once in the current period only and is not carried forward automatically to any future period. This applies to transactions such as overtime, gratuity, leave days taken.
Multiple	select 'Multiple' for the transaction to come through once in each of the periods selected in the range of consecutive periods, or in one or a range of future periods.
Indefinite	select 'Indefinite' for the transaction to come through automatically each period until further notice

Equal Monthly Payments

Monthly contributions on a weekly payroll can be handled in two ways:

Average

Manually compute an average amount to be contributed every week (Monthly contribution multiplied by 12, to get the annual contribution, divided by 52 weeks to get the average weekly contribution. This will mean that employees will pay the same amount per week but the monthly contribution may vary depending of whether there are 4 or 5 weeks in the month. NSSA accept this method of deduction since by the end of the year the contributions balance out.

Equal monthly

Tick 'Equal Monthly Payments' on the set up of Medical Aid and Pension Transactions Types. This will divide the monthly Payments contribution by the number of weeks in the period. Employees will, therefore, have the same amount being deducted for each week of the month but this may vary from month to month depending on if there are 4 or 5 weeks in the month. The advantage is that at the end of the month the total deducted from the employee will exactly correspond with the amount that should have been deducted for the month.

General Ledger

When setting up Transaction Codes use the drop down look-up to select the General Ledger Code to be applied. This will then come through on Journal reports and exports. In some instances it is necessary to set up the General Ledger Code for both the employee deduction and the employer contribution e.g. NSSA and Medical Aid.

GL Addition

Tick this Check Box on the setup of a Transaction code where the employee and employer contributions should be added together to export the combined amount in the accounting journal. For example, in a Medical Aid situation the 'G/L Addition' would have the Employee and Employer General Ledger contribution amounts added together to make one entry in the journal.

Transaction Code

Irregular Transaction

An Irregular Transaction is one that is unlikely to be processed regularly on an employee's payslip and should, therefore, not be included in the projection of income for FDS tax calculations.

IrregularTransaction

Manual Edit

To be able to change amounts that have have come through on a Transaction Code tick against 'Manual Edit'.

P6 Field

When a Transaction Code is created a default P6 field is allocated by Belina PayrollHR. If necessary change this default to the correct P6 field to be applied.

Previous Rate

Belina PayrollHR allows the processing of overtime and shorttime at the last rate of pay that previously applied before the entry of the latest rate of pay in the Employee Masterfile.

Rate

Enter the rate at which the deduction of shorttime is to be effected e.g. at normal time (x1) or overtime (x1.5 or x2.0)

When processing leave, overtime and shorttime Belina PayrollHR gives the option of processing amounts in either hours or days:

Regular Transaction

A Regular Transaction is one that is likely to be processed regularly on an employee's payslip and should, therefore, it is included in the projection of income to estimate the total Taxable Income for the year in the FDS tax calculations. This differs from an Irregular Transaction where the amount of the transaction is added to the total of Taxable income for the year to date and not projected as if it were received regularly through the year.

RegularTransaction

Reserved Transaction Codes

As Belina PayrollHR does the Calculation Routine it automatically generates Transaction Codes that are required to present certain standard transaction amounts, these include:

945	PAYE Calculated
946	Tax Levy
950	Tax Credits
955	Negative Pay
965	Negative Pay Recovery
975	Rounded Pay Recovery
970	Rounded Pay
980	Net Paid

Unit Type:

A choice is given in the way in which Overtime and Shorttime is processed. It may be processed in:

Days	Enter the number of days of overtime/ shorttime. Belina PayrollHR will calculate the value of the number of days with reference to the Rate entered and the Rate of Pay of the individual.
Hours	Enter the number of hours of overtime/ shorttime. Belina PayrollHR will calculate the value of the number of hours with reference to the Rate entered and the Rate of Pay of the individual.
Amount	Enter the value of the overtime/ shorttime taken.