An allowance is a certain amount of money an employee gets paid apart from the basic salary. Dearness allowance, medical allowance and leave travel allowance are a few allowances that are paid to an employee.
On the other hand, a deduction is an amount of money that is taken from the gross salary of an employee.
To add allowances and deductions:
- Select Allowance/Deductions to display the Payroll Employee Allowance/Deduction Maintenance screen.
- Enter the transaction code, work ID and the required values in the Payroll Employee Allowance/Deduction Maintenance screen.
