Hong Kong

Configuration

Install the following modules to get the latest features of the Hong Kong localization:

Name	Technical name	Description
Hong Kong - Accounting	l10n_hk	The base module to manage chart of accounting and localization for Hong Kong.
Hong Kong - Payroll	l10n_hk_hr_payroll	Enables payroll specific localization features for Odoo Payroll app. This module also installs Hong Kong - Payroll with Accounting and Documents - Hong Kong Payroll.
Hong Kong - Payroll with Accounting	l10n_hk_hr_payroll_account	Installs the link between Hong Kong payroll and accounting.
Documents - Hong Kong Payroll	documents_l10n_hk_hr_payroll	Integrates employee ir56 forms in the Odoo Documents app.

FPS QR codes on invoices

FPS is a payment service platform that allows customers to make instant domestic payments to individuals and merchants in Hong Kong dollars or Renminbi via online and mobile banking.

Activate QR codes

Go to Accounting app ‣ Configuration ‣ Settings. Under the Customer Payments section, tick the checkbox beside the QR Codes feature. Then, click Save.

FPS bank account configuration

Go to Contacts app ‣ Configuration ‣ Bank Accounts section ‣ Bank Accounts. Then select the bank account for FPS activation. Proceed to set the Proxy Type and fill in the Proxy Value field, depending on the type chosen.

Remember to include the invoice number in the QR code, by ticking the Include Reference checkbox.

Important

The account holder’s country must be set to Hong Kong on their contact form.

See also

Bank and cash accounts

Bank journal configuration

Go to Accounting app ‣ Configuration ‣ Journals and open the bank journal. Then, fill out the Account Number and Bank fields, located in the Journal Entries tab.

Issue invoices with FPS QR codes

When creating a new invoice, open the Other Info tab and set the Payment QR-code option to EMV Merchant-Presented QR-code.

Ensure that the Recipient Bank is configured, as Odoo uses this field to generate the FPS QR code.

Payroll

Important

Ensure the Hong Kong - Payroll (l10n_hk_hr_payroll) module is installed before proceeding.

Create employees

Go to the Employees app and click New. Then, configure the following fields:

• Under the Work Information tab

  • Working Hours: HK Standard 40 hours/week option must be selected.

• Under the Private Information tab

  • Surname, Given Name, Name in Chinese: name of the employee.

  • Private Address: address of the employee.

  • Bank Account Number: employee’s bank account number.

  • Current Rental: employee’s rental records (if rental allowance is applicable).

  • Autopay Type: BBAN, SVID, EMAL, etc.

  • Autopay Reference: autopay reference number.

  • Identification No: HKID of the employee.

  • Gender: gender of the employee.

  Important

  For the Bank Account Number, this account should be set as Trusted before further processing.

  To achieve this, click on the right-arrow button next to Bank Account Number field. Set the Send Money to Trusted by clicking on the toggle.

  Note

  To populate the Current Rental, click on the History button. Then, click on New. Fill in the relevant details and save the rental record. Upon saving the record, the rental contract state will be visible (at the top-right corner) and can be set to Running.

• Under the HR Settings tab:

  • Volunteer Contribution Option: select either Only Mandatory Contribution, With Fixed %VC, or Cap 5% VC.

  • MPF Manulife Account: account number, if applicable.

Manage contracts

Once the new employee has been created, click the Contracts smart button on the employee record, or navigate to Employees app ‣ Employees ‣ Contracts.

Note

Only one contract can be active simultaneously per employee, but an employee can be assigned consecutive contracts during their employment.

The following are critical for setting up a contract:

• Salary Structure Type: set as CAP57: Hong Kong Employee.

• Contract Start Date: start date of employment.

• Working Schedule: set as HK Standard 40 hours/week (from employee record).

• Work Entry Source: select either Working Schedule, Attendances or Planning. This field determines how the work entries are accounted for in the payslip.

  • Working Schedule: the work entries are generated automatically based on the employee’s working schedule.

  • Attendances: the work entries are generated based on the check-in/out period logged in the Attendances.

  • Planning: the work entries are generated from planning shifts only.

• Under the Salary Information tab

  • Wage Type: select Fixed Wage for Full-time or Part-time employees, or Hourly Wage for employees who are paid hourly.

  • Schedule Pay: the frequency of payslip issuance.

  • Wage: Monthly or Hourly depending on the Wage Type.

  • Internet Subscription: this is an optional field to provide additional internet allowance on top of the current salary package.

Important

Timesheets do not impact work entries in Odoo.

Once all information has been setup, set the contract status to Running by clicking the Running button in the top-right of the page.

Generate payslips

Once the employees, and their contracts, are configured, payslips can be generated in the Payroll app.

Odoo provides four different salary structures under CAP57 regulation:

1. CAP57: Employees Monthly Pay: to process the monthly employee salary.

2. CAP57: Payment in Lieu of Notice: to process final payment upon contract termination using ADW.

3. CAP57: Long Service Payment: applicable to employees with more than five years of service upon contract termination.

4. CAP57: Severance Payment: applicable to employees with more than two years of service upon contract termination.

Before running the payslips, the accounts used in the salary rule can be adjusted by navigating to Payroll app ‣ Configuration ‣ Rules.

Odoo can create pay runs in two ways: via batch or individual payslips.

Batch payslips

This method of payslip generation is used for recurring payments, since multiple employee payslips can be managed at once. Go to Payroll app ‣ Payslips ‣ Batches.

1. Click on New.

2. Enter a Batch Name (e.g. 2024 - Jan) and Period (e.g. 01/01/2024 - 01/31/2024).

3. Click on Generate Payslips.

4. Choose which Salary Structure to use for this batch. The department filter allows the batch to only apply to a specific group of employees.

5. Click on Generate.

6. A Payslips smart button is created automatically.

Next, click Create Draft Entry to generate a draft journal entry found in the Other Info tab of each payslip. A Confirmation pop-up window appears asking Are you sure you want to proceed?. Click Ok to create the journal entries.

Individual payslips

Go to Payroll app ‣ Payslips ‣ All Payslips.

This method of payslip generation is commonly used to handle non-recurring payments (e.g. CAP57: Payment in Lieu of Notice, CAP57: Long Service Payment or CAP57: Severance Payment).

1. Click on New.

2. Select an Employee. When selected, the Contract is filled out automatically.

3. Add a pay Period.

4. Select a salary Structure (e.g. CAP57: Employees Monthly Pay).

5. The Worked Days & Inputs tab automatically compute the worked days/hours and time off leaves that are applicable.

6. Additional payslip items can be added at this time (e.g. Commissions, Deductions) under the Other Inputs section.

7. Click on Compute Sheet button to generate the payslip lines. This button updates the Salary Computation tab.

Note

If the work entry for an employee was amended, click the (gear) icon, then click Recompute Whole Sheet to refresh the payslip’s Worked Days & Inputs tab.

The Salary Computation tab shows the detailed breakdown of the computation, based on the salary rules configured for each structure type.

1. Rent Allowance: amount derived from the employee’s active rental record.

2. Basic Salary: amount of base salary provided (after rent allowance deduction).

3. 713 Gross: net payable amount considering Commission, Internet Allowance, Reimbursements, Back-pay, Deduction, etc.

4. MPF Gross: net payable amount from 713 gross after consideration of additional allowances, deductions, and end-of-year payment.

5. Employee Mandatory Contribution: employee MPF Contribution.

6. Employer Mandatory Contribution: employer MPF Contribution.

7. Gross: net payable amount from MPF gross after consideration of MPF deductions.

8. Net Salary: final payable amount to be paid to the employee.

Important

There are no MPF contributions for the first month. Both employee and employer contribution starts on second month.

Under the Other Inputs section in Worked Days & Inputs tab, there are additional manual input types:

• Back Pay: additional salary payout can be included under this category.

• Commission: the commission earned during the period can be manually entered here.

• Global Deduction: a lump-sum deduction from the entire payslip.

• Global Reimbursement: a lump-sum reimbursement to the entire payslip.

• Referral Fee: the additional bonus offered for any form of business-related referral.

• Moving Daily Wage: to override the ADW value used for leaves computation.

• Skip Rent Allowance: if set, the rental allowance is excluded from the current payslip.

• Custom Average Monthly Salary: to override the average monthly salary used for end-of-year payment (rule is only applicable to payslips generated in December).

• Lieu of Notice Period (Months): only applicable to CAP57: Payment in Lieu of Notice salary structure. By default, the final payout is set as 1-month. Use the Count field under the Other Inputs section to set a different notice period duration.

Once the payslips are ready, click on Compute Sheet, followed by Create Draft entry to generate a draft journal entry found in the Other Info tab of the payslip.

Pay employees

Once the draft journal entries have been posted, the company can now pay the employees. The user can choose between two different payment methods:

• From the employee’s payslip (Payroll app ‣ Payslips ‣ All Payslips), once the payslip’s journal entry has been posted, click Register Payment. The process is the same as paying vendor bills. Select the desired bank journal and payment method, then later reconcile the payment with the corresponding bank statement.

• For batch payments (Payroll app ‣ Payslips ‣ Batches), once all draft journal entries from the batch are confirmed, click Mark as Paid to post the payment journal entry. Then create a payment in the Accounting app, and reconcile accordingly.

Attendances and hourly wage

To configure the contract for an employee paid hourly using the Attendances app for hours tracking, navigate to Payroll app ‣ Contracts ‣ Contracts. Create a new contract. It is important to remember to set the Work Entry Source as Attendances, and Wage Type as Hourly Wage.

To record the hours logged by the employee using Attendances app:

1. Go to Attendances app.

2. The employee can check-in/out, via the kiosk mode and the time will be logged automatically.

3. In the Payroll app, review the attendance work entries generated from Payroll app ‣ Work Entries ‣ Work Entries.

4. Next, generate the payslips and process the payment.

Time Off with Payroll

The work entry types and time off types are fully integrated between the Time Off and Payroll apps. There are several default time off types and work entry types specific to Hong Kong which are installed automatically along with the Hong Kong - Payroll module.

Go to Payroll app ‣ Configuration ‣ Work Entry Types and click New.

There are two checkboxes to be considered when setting up the work entry type:

• Use 713: Include this leave type as part of 713 computation.

• Non-full pay: 80% of the ADW.

See also

Creating and configuring work entry types

Understanding 713 Ordinance

The Hong Kong - Payroll module is compliant with 713 Ordinance which relates to the ADW computation to ensure fair compensation for employees.

The ADW computation is as follows:

ADW equals the total wage in a 12-month period, minus the wages of non-full pay, divided by the total days in a 12-month period minus the days of non-full pay.

Note

For 418 compliance, there is no automated allocation of the Statutory Holiday entitlement to the employees. As soon as 418 requirements are met, manually allocate the leaves, via the Time Off app.

Note

Before generating payslips, ensure the statuses are Done to validate the outcome.

Period	Days	Wage	Commission	Total	ADW	Leave Value
Jan	31	$20200	$0	$20200	$651.61 ($20200/31)	N/A
Feb	28	$20200	$5000	$25200	$769.49 ($45400/59)	N/A
Mar (One Day Annual Leave)	31	$20324.33	$0	$20324.33	$730.27 ($65724.33/90)	$769.49
Apr (One Day 80% Sick Leave)	30	$20117.56	$0			$584.22 ($730.27*0.8)

Example

Here is an example demonstrating the 713 logic:

• Jan: Generate a payslip with a monthly wage of $20200. The ADW is always computed on a cumulative basis of the trailing 12-months.

• Feb: Generate a similar payslip, but add an Other Input Type for the Commission.

• Mar: Apply for one full-paid annual leave in March. The salary compensation for the leave taken is based on ADW thus far.

  

• Apr: Apply for a 1-day non-full pay leave in April. Since this is a non-full pay leave, the ADW is computed accordingly.

  

Note

The value of ADW is computed in the backend, and not be visible to the user.

See also

• HK 713 Ordinance

• HK 418 Ordinance

Generate reports

Before generating the below reports, setup the following in Settings app ‣ Payroll.

Configure the following in the Accounting section:

• Tick the Payroll HSBC Autopay checkbox.

  • Autopay Type: Set as H2H Submission.

  • Select the Bank Account to use.

Configure the following in the HK Localization section:

• Employer’s Name shows on reports

• Employer’s File Number

• Manulife MPF Scheme

IRD report

There are a total of four IRD reports available:

• IR56B: employer’s Return of Remuneration and Pensions.

• IR56E: notification of Commencement of Employment.

• IR56F: notification of Ceasation of Employment (remaining in HK).

• IR56G: notification of Ceasation of Employment (departing from HK permanently).

Go to Payroll app ‣ Reporting, and select one of the IR56B/E/F/G Sheet options:

1. Click on New.

2. Fill in the relevant information for the IRD report.

3. Click on Populate, and the Eligible Employees smart button appears.

4. The Employee Declarations status is Draft and changed to Generated PDF status once the schedule runs.

5. Once the PDF is generated, the IRD form may be downloaded.

Note

The scheduled action called Payroll: Generate pdfs can be manually triggered. It is set by default to run the PDF generation monthly.

Manulife MPF sheet

Go to Payroll app ‣ Reporting ‣ Manulife MPF Sheet.

1. Click on New.

2. Select the relevant Year, Month, and Sequence No..

3. Click on Create XLSX.

4. The Manulife MPF XLSX file is then generated, and available for download.

Note

Odoo will not be developing further reports for other MPF trustee as there will soon be an eMPF platform setup by the local government.

See also

eMPF

HSBC autopay report

If HSBC Autopay is selected as the batch payment method, click on Create HSBC Autopay Report, and fill in the mandatory fields:

This creates an .apc file format which can be uploaded to the HSCB portal for processing.