How to Set Up the New Fiscal Year in RealHRsoft
Fiscal year configuration in RealHRsoft is the foundation of accurate payroll, compliant tax calculations, and clean leave management for the entire year. Getting this setup right before the first Shrawan payroll run is one of the most important tasks an HR Manager does in Nepal.
RealHRsoft — a Workforce Intelligence Platform — handles both the mandatory payroll fiscal year and a flexible leave fiscal year independently, so every organization can configure the system to match both their legal obligations and their internal HR policy. This guide explains how each works and walks through the exact steps to configure them.
What is a Fiscal Year in Nepal?
A fiscal year is the 12-month period an organization uses to manage its finances, run payroll, calculate taxes, and report to government authorities. In Nepal, it follows the Bikram Sambat calendar — Shrawan 1 to Ashadh end — and every organization must follow it by law.
For HR, the fiscal year is not just an accounting concept. It is the calendar that controls when salaries are calculated, when taxes are deducted, when SSF contributions are deposited, and when the government expects your compliance filings. Every payroll run, every TDS deduction, every SSF deposit your organization makes happens within this 12-month window. When the fiscal year resets on Shrawan 1, everything resets with it — tax slabs, declarations, contribution settings, and compliance deadlines.
FY 2083/84 brought significant changes to payroll and tax compliance. Previously, Nepal’s income tax had separate slabs for married and single employees — two different thresholds, two different calculations. From FY 2083/84, there is now a single unified tax slab that applies to all employees regardless of marital status. New education deductions have also been introduced. These changes must be correctly configured in RealHRsoft before Shrawan payroll is processed. Shrawan salary is typically processed at the end of Shrawan or the beginning of Bhadra — making the period between budget day and the first payroll run the most critical configuration window of the year.
Global Fiscal Year vs Leave Fiscal Year
RealHRsoft separates fiscal year configuration into two independent settings — Global Fiscal Year and Leave Fiscal Year. Before starting setup, it is important to understand what each one controls and why they are different.
Global Fiscal Year
The Global Fiscal Year is the payroll and compliance calendar. It is fixed by law — Shrawan 1 to Ashadh end — and every organization in Nepal follows the same calendar. This setting governs everything that touches payroll and government reporting:
- Payroll processing and salary calculations
- Income tax slabs and TDS deductions
- SSF contribution deposits
- Advance tax instalment schedule
- IRD tax return filing
This must be configured before the first payroll run of the new fiscal year.
Leave Fiscal Year
The Leave Fiscal Year is independent of the payroll calendar. RealHRsoft lets each organization define it based on their own policy and best practice. Leave balances, carry-forward caps, and encashment all reset on the leave fiscal year date — not necessarily Shrawan 1. Common configurations include:
- Shrawan to Ashadh — matches the payroll fiscal year
- Baishakh to Chaitra — aligns with the Bikram Sambat Calendar
- January to December — common in INGOs and international organizations
RealHRsoft supports Global Fiscal Year and Leave Fiscal Year settings running concurrently, with no conflict between the two.
How to Configure the Fiscal Year in RealHRsoft
The setup process is the same for both fiscal year types. The only difference is the category selected at the point of creation.
- Go to Organisation > Settings > Fiscal Year
- Click Create New Fiscal Year
- Enter the Fiscal Year Name — (E.g, 2083/84)
- Select the category:
- Global — for payroll and compliance
- Leave — for leave management
- Set the start and end dates:
- Global: Shrawan 1, 2083 to Ashadh end, 2084 — fixed, no variation
- Leave: set based on your organization’s policy
- Save and activate
Once activated, RealHRsoft references the fiscal year across all relevant modules — payroll, leave management, attendance, and compliance reporting.
How RealHRsoft Helps
RealHRsoft enforces fiscal year configuration before payroll can be processed. If the Global Fiscal Year for the new period has not been activated, the Payroll Management module will not allow a payroll run to proceed — preventing any possibility of processing salaries against the previous year’s tax slabs or SSF contribution settings. The configuration is not optional and cannot be bypassed.
Once the Global Fiscal Year is activated, the Payroll Management module uses it as the reference point for every payroll run, TDS calculation, SSF deposit, and compliance deadline for the entire year. Once the Leave Fiscal Year is activated, the Leave Management module resets balances, applies carry-forward caps, and calculates encashment automatically on the configured date — with no manual intervention required.
For organizations running different payroll and leave fiscal years, both operate simultaneously in one system — no duplication, no manual reconciliation.
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Frequently Asked Questions
1. What is the difference between Global Fiscal Year and Leave Fiscal Year in RealHRsoft?
The Global Fiscal Year governs payroll, TDS, SSF, and all compliance reporting — it is fixed by law at Shrawan 1 to Ashadh end. The Leave Fiscal Year governs leave balances, carry-forward caps, and encashment — it can be set to any 12-month period that fits your organization’s policy.
2. Can an organization in Nepal set a different leave fiscal year from the payroll fiscal year?
Yes. RealHRsoft allows each organization to define its leave fiscal year independently. Common choices include Baishakh to Chaitra for organizations aligning their HR Policy, or January to December for INGOs and international organizations. Both run simultaneously without conflict.
3. When should the fiscal year be configured in RealHRsoft?
The Global Fiscal Year should be configured in the last week of Ashadh — before the fiscal year closes and before the first Shrawan payroll is processed. The Leave Fiscal Year can be configured at any time but should be set before the leave reset date takes effect.
4. What happens if the fiscal year is not configured before Shrawan payroll is processed?
RealHRsoft will not allow payroll to run until the Global Fiscal Year is activated. This is a system-level enforcement — not a warning. HR must complete the fiscal year configuration before the first payroll of the new year can be processed. Completing this setup in the last week of Ashadh ensures no delay to the first Shrawan payroll run.
