> 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

### 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.

<figure><img src="/files/TQvYQZhkdz4ychbAFTju" alt=""><figcaption></figcaption></figure>

**Step 5:** Create component LOP Credit Days, don’t select any ‘Behaviour’ as shown in the snapshot below.

<figure><img src="/files/PWaxlHqeSEdnzyT2GaSZ" alt=""><figcaption></figcaption></figure>

**Step 6:** After the creation of All components, go to ‘Salary Structure’ and set the formula for all components.&#x20;

**Path: Setting> Payroll>Salary Structure**&#x20;

Select ‘Direct’ from the dropdown for ‘Direct or Percent’

<figure><img src="/files/poLaypt3zALePx0DTwo8" alt=""><figcaption></figcaption></figure>

**Step 7:** Add the formula to all the LOP components as given below.&#x20;

Formula- (FB/MD) \*LOPCD&#x20;

(Repeat the same for all other Components)

<figure><img src="/files/AmzHhDBut0RJktscDzsp" alt=""><figcaption></figcaption></figure>

**Step 8:** After that follow the path below&#x20;

**Path: Settings > Payroll> Pay settings> LOP Days Matching**

<figure><img src="/files/tTIGds1PuQIdRzpsQ9vY" alt=""><figcaption></figcaption></figure>

**Step9:** Go to LOP - Components Matching&#x20;

**Path: Setting>Payroll>Pay Setting> LOP - Components Matching>Select Category>Select Lop Credit Component >Save**

Do the setting as shown in the snapshot below

<figure><img src="/files/564qcaQJxCMnpvaUZSVF" alt=""><figcaption></figcaption></figure>

**Step 10:** To Credit the LOP for the previous month, please follow the below path.&#x20;

**Path: Employee Account>Payroll>LOP Credit>Month>view>LOP Credit Days-Put days>Action- Add**

<figure><img src="/files/LKsHIjQzRM591dXPVM4l" alt=""><figcaption></figcaption></figure>

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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