Any one please guide me about advance to employees. how we can booked in Manager Software. for Example. if employee has 50000 salary. he received loan from company against his salary lets suppose 60000 and he committed to pay 5000 each month as salary deduction against his loan.
First month he gets:
Salary 50000
Loan 60000
Toal 110000
next month Salary:
Salary 50000
Loan Deduction
If any employee receive 5000 advance from his salary. when we calculate next month salary we
Actually I found the solution for this,
Create an account under Asset " Advance to Staff"
While giving advance go to “Payment” and pass following entry:
Advance to Staff A/c Dr. ₹ 60,000
To Bank/Cash A/c ₹ 60,000
At the time of making salary provision go to payslip and pass following entry:
Payee: Employee Name
Salary: Total Amount. ₹ 50,000
Deduction: select “Advance to staff” and put the advance figure repaid ₹ 5,000
[You will see salary head will be credited with total salary while, net amount (i.e Salary-Advance) will be shown under the head “Employee Clearing Account” under Liability]
Now final step i.e making Payment, Go to Payment and pass below entry:
Employee Clearing A/c Dr. 45,000
To Bank A/c 45,000
Final Effect you will see after above Entries:
Salary (P&L) : ₹ 50,000
Advance to Staff (B/S - Asset side) : ₹ 55,000
Employee Clearing A/c (B/S - Liability) : ₹ Nil
Note: First you have to add “item” i.e Advance to Staff in Payslip.