The payroll process, step by step
Payroll improves when it stops being a monthly scramble and becomes a cycle with a known order and a clear stopping point. What follows is an operational description, not legal guidance — statutory obligations in your country are set by its authorities, not by this page.
1. Prepare standing data before the month opens
Anything that does not change monthly should be ready before the period is opened: active contracts, base salaries, salary components, work schedules and pay currencies. In NXORA these are defined once and act as the reference for every period.
2. Close the variable inputs
Set a cut-off after which the month's inputs stop moving: timesheets, leave requests, commission-bearing sales, bonuses and penalties, and any new loan. Without a cut-off you will review the same numbers twice.
- Finalise timesheet hours for the period
- Decide pending leave requests
- Record the sales that commission is calculated on
- Record bonuses and penalties
- Confirm which loan instalments are running
3. Open the period and review
Opening the period generates a payslip for every active employee. Efficient review starts with the exceptions: joiners and leavers, anyone with unpaid leave, and anyone whose salary or currency changed.
4. Approve and lock
Approval is what turns a calculation into a record. Once approved the figures are frozen; corrections happen by reopening the period or adjusting in the next one, and either way the change is visible rather than silent.
5. Pay and document
Payments are recorded per employee, in full or partially, with the outstanding balance visible. Payslips download as PDF, and the run exports in a format suited to a bank transfer file or an accounting entry.
Frequently asked questions
- When should the input cut-off be?
- Far enough before final review to handle the exceptions calmly. What matters is that the cut-off is fixed and known to everyone, not the specific date.
- What if an error is found after approval?
- Reopen the period and correct it, or handle it as an adjustment in the following period. Both keep the change visible instead of quietly editing history.