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Loss of Pay

Loss of (LOP) refers to a deduction from an employee’s salary when they are absent from work without approval or have exhausted their paid leave quota.

In Zoho Spend, managing LOP can include both current month adjustments and adjustments from previous months. Understanding how these processes work ensures accurate payroll calculations.

ActionDescriptionWhen to Use
Add LOPDeducts salary for unapproved leaves or exhausted paid leave for the current month.Use this when an employee has unapproved leaves or has exhausted their paid leave in the current payroll month.
LOP ReversalReverses LOP deductions that were applied in error or after valid reason was provided.Use this when an LOP deduction was made in the past three months but should be reversed due to an approved reason (e.g., medical).
LOP CorrectionAdds LOP that was missed or not applied correctly in previous months.Use this when LOP was missed or incorrectly applied in previous months (up to three months).

Add LOP for Current Month

Here’s how you can add LOP for an employee for the current month:

  • Go to Pay Runs under Payroll.
  • Select the current pay run and click View Details.
  • Choose the employee for whom you wish to apply LOP.
  • Click the + Add LOP option next to the payable days.
  • Enter the number of LOP days for the current month.
  • Click Save to update the LOP and recalculate the net pay.

LOP Adjustments for Previous Months

For LOP adjustments related to the previous months, use the Adjust LOP feature. This is especially useful when reversing or correcting LOP that was applied incorrectly or when you need to account for leave approvals granted after LOP was deducted.

There are two types of adjustments:

  • Reversal: Used when you want to minus LOP deductions that were previously applied.
  • Correction: Used when you need to add the number of LOP days.

Here’s how you can adjust LOP for previous months:

  • Go to Pay Runs under Payroll.
  • Select the current pay run and click View Details.
  • Select the employee for whom you want to adjust LOP for a previous month.
  • Click Adjust LOP (Previous Months).
  • Select the month for which you want to make adjustments.

Note: You’ll only be able to adjust the LOP for a maximum of three months within the current fiscal year.

  • Choose the type of adjustment: Reversal to minus LOP days (or) Correction to add LOP days.
  • Enter the number of days to adjust.
  • Click Save to update the LOP and recalculate the net pay.

Import LOP Adjustments of Multiple Employees

If you need to adjust LOP days for multiple employees across previous months, you can use the import option for bulk adjustments.

Here’s how you can Import LOP Adjustment Days:

  • Go to Pay Runs under Payroll.
  • Select the current pay run and click View Details.
  • Click Import/Export and select Import LOP Adjustment Days.
  • Download a sample .csv or .xls format file and fill in the necessary details, such as employee number, month, and adjustment type (Reversal or Correction).
  • Upload the file with the required details.
  • Select how you want to handle duplicates and Character Encoding.
  • Click Next.
  • Map the import file fields with the fields in Zoho Spend and click Import.
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