Skip to main content
Prerequisites
  • One or more payroll runs (Pay Period entries) already exist under HR > Payroll > Payroll Entry List.
  • Each payroll entry has valid salary slips generated and, if already submitted, journal entries posted.
  • Bank accounts for salary disbursement are configured under Accounts > Bank Account List.
  • Payroll expense, liability, and bank accounts are mapped correctly in Accounts > Chart of Accounts.

​
Step 1: Locate the Payroll Entry

  1. Navigate to HR > Payroll > Payroll Entry > Payroll Entry List.
  2. Use the Search Bar or Filter > Add Filter to find the specific payroll run by:
    • Pay Period (e.g., “June 2025”)
    • Status (Draft, Submitted, Paid, or Cancelled)
    • Company (if you have multiple entities)
  3. Click the Payroll Entry No. to open its detail view.

​
Step 2: Change Status from Draft to Submitted

  1. Open a payroll entry in Draft status.
  2. Review each salary slip in the Salary Slips table to ensure components, attendance, and deductions are correct.
  3. Click Submit at the top-right.
    • The system validates that all required fields (Pay Period, Company, Salary Slips) are completed.
    • Upon successful validation:
      • All salary slips become “Submitted.”
      • Payroll journal entries post to the general ledger, debiting payroll expense accounts and crediting payroll liability accounts.
      • The payroll entry’s status updates to Submitted.
  4. If a validation error occurs (e.g., missing salary slip for an employee), correct the issue and click Submit again.

​
Step 3: Mark a Submitted Payroll Entry as Paid

  1. Open a payroll entry with Status = Submitted.
  2. Confirm that bank funding is available and salary disbursement is scheduled.
  3. Click Actions > Mark as Paid (or Create Bank Entry, depending on your setup):
    • If using Mark as Paid, CGIC:
      • Prompts for Payment Date (e.g., today’s date).
      • Requires selecting the Bank Account used to disburse net pay.
      • Calculates the total net pay amount from salary slips.
      • Creates a Bank Voucher journal entry that debits payroll liability accounts and credits the chosen bank account.
      • Updates each salary slip’s status to Paid.
      • Updates the payroll entry’s status to Paid.
    • If using Create Bank Entry, CGIC opens a draft Bank Voucher with all net pay lines pre-filled—review and Submit to record payment.
  4. Click Submit (or Save & Submit) to finalize payment. The payroll run’s status becomes Paid.

​
Step 4: Cancel a Payroll Entry

**4.1 Cancel a Draft Payroll Entry **
  1. Open a payroll entry in Draft status.
  2. Click Actions > Cancel.
    • The status immediately changes to Cancelled.
    • You may later create a new payroll entry for the same period if required.
**4.2 Cancel a Submitted Payroll Entry **
Cancelling after submission will reverse all related journal entries and reset salary slip statuses. Do this only if the run contained errors (e.g., incorrect salary structure, missing employees).
  1. Open the payroll entry in Submitted status.
  2. Ensure no salary slips have already been paid. If any are marked Paid, reverse the “Paid” status first (see Step 5 below).
  3. Click Actions > Cancel.
    • CGIC reverses all journal entries created during submission (reversing payroll expense and liability entries).
    • All salary slips revert to Draft status (allowing corrections).
    • The payroll entry’s status updates to Cancelled.
  4. Correct underlying issues (e.g., adjust leave days or component values) and re-run payroll for that period if needed.
**4.3 Cancel a Paid Payroll Entry **
Cancelling a Paid payroll run is a sensitive operation that impacts bank reconciliation and employee payments.
  1. Open the payroll entry in Paid status.
  2. Click Actions > Reverse Payment (or Cancel if no “Reverse Payment” button exists).
    • CGIC:
      • Reverses the bank voucher by creating a mirror entry (debiting bank, crediting payroll liability)\
      • Resets each salary slip to Submitted status. \
      • Updates the payroll entry status to Submitted.
  3. Now, follow Step 3 steps to mark as Paid again using corrected data, or follow Step 4.2 to cancel entirely.

​
Step 5: Verify Status Changes and Audit

  1. Open the payroll entry after a status change.
  2. In the Status field, confirm it reflects the latest state (Draft, Submitted, Paid, or Cancelled).
  3. Click Menu > View History to see a detailed log of all actions taken:
    • Who changed the status (user name)
    • When the change occurred (timestamp)
    • What journal entries were posted or reversed
    • Any notes entered during cancellation or reversal