How do I recover credit sales to my employees using the payroll in manager?
Can you explain what you are trying to do?
Are you selling goods/services to your employees on credit?
So your employees are customers?
Best practice is to treat your employees like any other customer and pay them their usual pay without making a deduction for sales made to them and have them pay you like any other customer. This will keep it simple. Otherwise you have to create a deduction category under Pay Slips and then pay them a lesser amount for the credit sales made to them and then get into a complicated entry to split the transaction when you make the payment to gross up payroll and offset the difference to accounts receivable to clear the amount the employee owed you for the credit sales. Hence my advice on keeping things separate and at arms length. Deductions from payroll also require authorization and you wouldn’t want to fall foul of employment law for making unauthorized deductions. Have them pay you like any other external debtor for their purchases from you.
I have sold goods to my employees on credit and as such I have since opened customer accounts for them and invoices have been generated accordingly. However, I would like see a situation were am able to offset the invoices owing using deduction on their payslips without having to collect physical cash. How do I go about?
For the payment part of what you are trying to do, you can create a new payslip earnings item named something like Employee purchase. On the payslip, enter the amount being repaid as a negative number.
You are still left having to use journal entries, though, to transfer amounts from Accounts receivable to Employee clearing account, because you cannot set up an earnings payslip item to credit Accounts receivable. So its less work to collect the money.
Thanks Tut, I did exactly that and it totally worked.