> For the complete documentation index, see [llms.txt](https://docs.pockethrms.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.pockethrms.com/hr-and-admin-portal/cloud-configuration/payroll/payroll-guide/lop-settings.md).
# LOP Settings
A guide to create a Credit Loss of Pay (LOP) credit setting
### Previous Month LOP Credit
The objective of this module is to Credit Loss of Pay (LOP) for the previous month, in case you deducted the same last month mistakenly.
#### Creating LOP Credit Setting
For creating a LOP credit setting, one has to follow the path given below.
**Step 1:** Follow the **Path: Setting> Payroll>Salary Component>Earnings**
**Step 2:** Click on the ‘+’ icon to add a component.
**Step 3:** Create all LOP credit components (Ex- LOP Cr Basic, LOP Cr HRA, LOP Cr Special, LOP Cr LTA, and more)
**Step 4:** Fill in ‘Field Name’, and ‘Label Name’, and select ‘Behaviour’ as shown in the snapshot below.
**Step 5:** Create component LOP Credit Days, don’t select any ‘Behaviour’ as shown in the snapshot below.
**Step 6:** After the creation of All components, go to ‘Salary Structure’ and set the formula for all components.
**Path: Setting> Payroll>Salary Structure**
Select ‘Direct’ from the dropdown for ‘Direct or Percent’
**Step 7:** Add the formula to all the LOP components as given below.
Formula- (FB/MD) LOPCD
(Repeat the same for all other Components)
**Step 8:** After that follow the path below
**Path: Settings > Payroll> Pay settings> LOP Days Matching**
**Step9:** Go to LOP - Components Matching
**Path: Setting>Payroll>Pay Setting> LOP - Components Matching>Select Category>Select Lop Credit Component >Save**
Do the setting as shown in the snapshot below
**Step 10:** To Credit the LOP for the previous month, please follow the below path.
**Path: Employee Account>Payroll>LOP Credit>Month>view>LOP Credit Days-Put days>Action- Add**
In this way, you can credit the loss of pay of last month to the employee account in the current month’s salary.
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