Here is an example for an employee named Ernst Handel.
Handel earns 1000, recorded on a payslip:
Handel also buys merchandise from the company, so is set up as a customer. A sales invoice is issued:
So Handel owes the company more than his current earnings. A payment transaction is entered for his weekly pay. Part of the sales invoice receivable is recovered:
The Employee clearing account for Handel is now zero:
and the sales invoice shows the reduced balance due:
