It enables admin to manage deductions when employee is not fully present. When employee is not fully present, the admin can balance his earning components as well as his deduction components according to the admin's policies.
Case 1: If you want to allow earning components without any deductions
Navigate to: Control Panel -> Payroll -> Salary Template
Click on next to open the section of pay components
In the earning component that you want to customize, select the option from the drop down under calculation mode
Select Flat to fully pay without any deduction irrespective of days on which employee is present
Example: if the company pays food coupon for complete 30 days, but the employee is present for only 15 days, generally, the company would have paid for only 15 days as he was present for only those days, but if the company want to pay for the complete month, they have to select the option of Flat in the salary template of the component.
Case 2: If you want to allow earning components with deductions
Navigate to: Control Panel -> Payroll -> Salary Template
Click on next to open the section of pay components
In the earning component that you want to customize, select the option from the drop down under calculation mode
Select Net paid days to pay with deductions, and rest balance will be adjusted in the option select below (e.g- medical, LTA etc)
Example: if the company pays food coupon for complete 30 days, but the employee is present for only 15 days, if the company want to pay for only the days he is present, they have to select the option of Net paid days in the salary template of the component and also have to select the option from which the later adjustment of balance has to be done.