What is "Enable Auto Salary Small Amount Adjustment"?

The Enable Auto Salary Small Amount Adjustment option is available in Payroll Module Setup > Payroll Tab.

Why is this function needed?

When payroll is calculated, salary may be split into multiple components such as:

• Salary

• Holiday Pay

• Annual Leave Pay

• Untaken Annual Leave Pay

• Allowances

These components are often calculated using daily rates or hourly rates. Depending on the number of decimal places configured, small rounding differences may occur during the calculation process.

As a result, the sum of the individual payroll components may differ slightly from the employee's reference salary amount, even though the payroll has been calculated correctly. Typical differences are very small, such as $0.01 to $0.99.

For example:

Item Amount

Basic Salary (Ref) $18,000.00

Salary $16,451.61

Holiday Pay $1,548.38

Total $17,999.99

Although the difference is only $0.01, some organizations prefer the payroll total to match the reference salary amount exactly.

How does the function work?

When Enable Auto Salary Small Amount Adjustment is turned on, HRPro automatically detects small variances of less than $1.00 between:

Salary + Allowance + Allowance 2 + Holiday Pay + Annual Leave Pay + Untaken Annual Leave Pay

and

Basic Salary (Ref) + Allowance (Ref) + Allowance 2 (Ref)

If a small difference exists, the system automatically adjusts the Salary amount so that the totals match exactly.

This helps eliminate insignificant rounding differences and makes payroll figures easier to reconcile and audit.

When should I enable this option?

This option is recommended when:

• Payroll is frequently split into multiple pay components.

• Daily-rate or hourly-rate calculations generate small rounding variances.

• Users expect the total payroll amount to exactly match the reference salary amount.

• The organization prefers simplified payroll reconciliation.

When may this option not be suitable?

This option is intended to correct minor rounding discrepancies only.

It should not be used to force a payroll result to match a desired amount when the variance is caused by actual payroll calculations, such as:

• Termination payments with partial pay periods

• Join-date prorations

• No-pay leave deductions

• Other scenarios where the amount is intentionally calculated based on actual payable days

In these cases, the difference is part of the payroll calculation itself rather than a rounding issue. Applying an automatic adjustment could make the result less accurate.

Alternative approach

As an alternative, consider increasing the Daily Rate Decimal Place setting (for example, to 4 decimal places). This can reduce rounding discrepancies at the source and improve calculation accuracy without requiring automatic adjustments.