Finance • Module glossary
This glossary explains common words and fields you’ll see when using Payroll in XFatora.
Also known as: HR Payroll
What it is: An allowance is an additional fixed amount paid to an employee (housing, transport, phone).
When you use it: Use allowances to structure compensation beyond base salary.
Example: A housing allowance is paid monthly as part of gross pay.
Common fields (and what they mean):
Related terms: Gross Pay, Compensation Package
What it is: A bonus is an extra payment given for performance, milestones, or company policy.
When you use it: Use bonuses to reward performance while keeping payroll records clear.
Example: A sales team receives a quarterly performance bonus.
Common fields (and what they mean):
Related terms: Gross Pay, Goals Tracker
What it is: Deductions are amounts subtracted from gross pay (tax, insurance, loans, penalties).
When you use it: Use deductions to keep payroll compliant and accurate.
Example: An employee has a monthly loan deduction taken automatically.
Common fields (and what they mean):
Related terms: Taxes, Net Pay
What it is: Gross pay is total earnings before deductions (base salary + allowances + overtime + bonuses).
When you use it: Use it to understand compensation cost before taxes and deductions.
Example: An employee’s gross pay increases due to approved overtime.
Common fields (and what they mean):
Related terms: Net Pay, Overtime, Allowance
What it is: Leave impact reflects how unpaid leave or special leave affects salary calculations.
When you use it: Use it to ensure payroll matches attendance and HR policies.
Example: Unpaid leave reduces gross pay based on policy rules.
Common fields (and what they mean):
Related terms: Time & Attendance, People Records
What it is: Net pay is what the employee actually receives after all deductions.
When you use it: Use net pay to confirm the final payment amount matches expectations.
Example: A payslip shows 8,000 SAR net pay after deductions and taxes.
Common fields (and what they mean):
Related terms: Deductions, Taxes
What it is: Pro-rating adjusts salary when an employee joins mid-period, so they’re paid only for days worked.
When you use it: Use pro-rating to keep payroll fair and consistent.
Example: An employee starts on the 15th; payroll pays half-month salary.
Common fields (and what they mean):
Related terms: Pay Period, People Records
What it is: Overtime is pay for hours worked beyond the standard schedule, usually at a higher rate.
When you use it: Use overtime rules to compensate staff fairly and to track labor costs.
Example: Warehouse staff work weekend hours; overtime is calculated and added to payroll.
Common fields (and what they mean):
Related terms: Time & Attendance, Payslip
What it is: A pay period is the time range for which employees are paid (monthly, biweekly, weekly).
When you use it: Use pay periods to align attendance, overtime, and deductions consistently.
Example: Payroll is processed monthly from the 1st to the 30th.
Common fields (and what they mean):
Related terms: Time & Attendance, Payroll Run
What it is: Payment method is how employees are paid (bank transfer, cash, cheque).
When you use it: Use payment methods to streamline payroll processing and reporting.
Example: Most employees are paid by bank transfer; one contractor is paid in cash.
Common fields (and what they mean):
Related terms: Net Pay, Payroll Run
What it is: Payroll approval is the confirmation step before payments are executed.
When you use it: Use approvals to prevent mistakes and ensure finance/HR oversight.
Example: HR reviews employee changes; Finance approves the payroll run before payment.
Common fields (and what they mean):
Related terms: Payroll Run, Audit Trail
What it is: A payroll journal is the accounting posting that summarizes payroll expenses and liabilities.
When you use it: Use it to connect payroll to your core accounting reports.
Example: Payroll expense posts to “Salaries Expense” and deductions post to “Payables”.
Common fields (and what they mean):
Related terms: Core Accounting, General Ledger
What it is: Payroll reports summarize salaries, deductions, overtime, and costs by department or period.
When you use it: Use reports for budgeting, compliance, and management insight.
Example: Finance reviews payroll cost by department to plan headcount changes.
Common fields (and what they mean):
Related terms: People Records, Core Accounting
What it is: A payroll run is the process of calculating salaries for a pay period and preparing payslips and payments.
When you use it: Use payroll runs monthly (or per your schedule) to ensure employees are paid accurately and on time.
Example: At the end of the month, you run payroll for all active employees and approve it before payment.
Common fields (and what they mean):
Related terms: Payslip, Deductions, Net Pay
What it is: A payslip is the document that explains an employee’s pay: earnings, deductions, and final net pay.
When you use it: Use payslips for transparency and for employee records.
Example: An employee downloads their payslip to verify overtime was included.
Common fields (and what they mean):
Related terms: Payroll Run, Gross Pay, Net Pay
What it is: Payslip distribution is how employees receive payslips (portal, email, download).
When you use it: Use controlled distribution to protect privacy while keeping access easy.
Example: Employees download payslips from their secure profile.
Common fields (and what they mean):
Related terms: People Records, Security
What it is: A salary change updates an employee’s compensation—promotion, annual raise, or role change.
When you use it: Use salary change history to keep payroll accurate and transparent over time.
Example: An employee’s salary increases starting next month after a promotion.
Common fields (and what they mean):
Related terms: People Records, Audit Trail
What it is: Payroll taxes are required contributions withheld or paid as part of payroll (varies by country).
When you use it: Use payroll tax tracking to avoid compliance issues and penalties.
Example: The payroll run calculates tax withholding automatically for each employee.
Common fields (and what they mean):
Related terms: Deductions, Compliance
