12 Pay is a payroll add-on. To get started just follow these steps:
Setting Up
Set up 12 Pay
In 12 Pay, select KashFlow on the employer accounts form to integrate with Tally. A Connect button then appears that allows you to enter your Tally username and password. Once you have successfully connected the nominal codes on the payment and deduction codes will be populated using codes downloaded from your Tally data. The Export Nominal Summary payroll report will export the nominal summary of a payroll period into the Tally software.
Set up Tally
To start, you will need to enable the Tally API by going to Settings > API Settings and tick the box for Enable API and un-tick the box for Restrict Access by IP. You need to activate journals in your Tally software to make use of the 12Pay integration. To do this click Settings > Advanced Settings > Tick the box for Enable Journal > Click Update. A standard Tally company will not contain all the accounts that you need to integrate your payroll with Tally. You can add them by clicking Bank > Transaction Types and use the text box to add the following new ones. As a minimum add the following codes to the list on that page:
- 2210, PAYE
- 2211, NI
- 2220, Net Pay Liability
- 7000, Staff Pay
You may also need the following codes (if the employer uses SSP, SMP, or attachments):
- 2102, Attachment Liability
- 7010, SSP Recovery
- 7011, SMP Compensation
The above list of codes are some of the standard codes that 12Pay ships with, and which therefore Tally needs to integrate with a standard copy of 12Pay. But if you have the bookkeeping knowledge you can control the codes in 12Pay yourself, by altering them on the Advanced tab of the Payment/Deduction maintenance form. Whenever you add a new payment or deduction code in 12Pay you should give it an appropriate account code in Tally; either a Tally account code that already exists, or one of the ones in the above list, or a new one that you create.
Using
When you run your payroll in 12Pay a journal will be generated in Tally, this is accessible by clicking the Journal button. When you come to pay your staff you will need enter a money out bank transaction for that amount. The transaction type will be Staff Salaries, the amount will be the amount paid out and the transaction date will be the date the money left your account.