but @lubos then your salary/wages will show less in P&L side.
1st Step: Add “Advance to staff” on Asset side
Add “Advance to Staff” in payslip deduction Item.
2nd Step: Whenever you advance money to staff pass Journal Entry (New Payment)-
Advance to staff A/c Dr.
To Bank A/c
3rd Step: While making payslip pass given entry-
Salary A/c Dr.
To Bank A/c
To Advance to staff A/c
4th Step: While making payment entry pass following entry-
Employee Clearing A/c Dr.
To Bank A/c
Only problem I’m facing is that in totality all things will be fine but It would be betrer if like custmer aur vendor , we don’t get name of the employee like for Custmer /Vendor and thus they don’t get adjusted automatically.
Hope team will come out with solution for this too.
For advance to staff, you don’t need separate account. Just pay employee more than your owe them as per payslips and allocate the amount paid to their employee clearing account. Their employee clearing account will be in debit.
In future, when you print payslip, Manager will automatically recognize this debit amount as employee payment in advance.
It seems you have not tried actually doing what you say you want to do. When you pay an advance to an employee, post the payment to Employee clearing account. A field for the employee name automatically appears. Select the employee:
As far as this is concerned till now I’m doing this only, but this is not actually correct method.
Suppose your salary is 15k and I’m paying you 10k, you ask me why only 10k then I’ll tell you I have made deduction towards your advance.
I want this to reflect on salary slip itself brother, that’s why I’m suggesting this.
Employee clearing Account gives me arithmetically correct entry but not for reporting purpose.
You are saying pass entry of advance from customer through Trade payable account. But as per our Tax Laws at the end of the FY we have to report all the advance, how that will be possible at that time.
don’t search for that guide here, we had similar discussion regarding advance from customer/to supplier in that topic he suggested me that guide.
That topic was very much similary that’s why made reference to that guide here.
You need to understand that the Payslip is separate from the Payment. First you give the payslip which details the movements between the 15k and 10k and then the payment which matches the Payslip nett.
I only mentioned special accounts in the other topic because @Ashish_Mishra shifted subjects and asked how to obtain dropdown lists of customers, suppliers, or employees for accounts created. The specific question was whether that was possible. I explained how to do it. I did not recommend using special accounts for employee advances.
Just I want to associate my customer, supplier and employee list with other account so that it will make much more sense and reporting can be done more transparently.
(Note: I know under both the methods final effect will be same as per balances are concerned , here matter is about presentation as per Accounting Standard, in my other topic @Tut said it makes no difference if you show Customer Normal balance and their Advance balance by netting off, as per International Financial Reporting Standard (IFRS) what he said is not tenable, his point was very much like a layman.
Hope you all got my point, if not then also its fine, I guess we all spend much time on this small issue.
Obviously, the first. And the fact that you produced it in Manager shows that what you want can be accomplished. Where is the issue?
Manager is used worldwide. Not every country follows IFRS. Yet Manager accommodates both approaches, as I have said before. Further, you are mixing the question of whether customer/supplier credits are shown separately with questions about employee advances. The same standards do not apply.
@Ashish_Mishra, you seem to keep insisting Manager will not do what you want. Yet you’ve been shown how it will.
Then where is the problem of simplifying the input which gives you more transparent and self-explanatory?
If I pass this entry using employee clearing account than I’ll not be able to generate 1st type of payslip.
I in IFRS stands for International and not India sir. and almost every country follows IFRS.
@tut , I was particularly talking about these advance related topic. And I’ve observed that in my as well as other cases whenever someone asks question your first reply was always negative. It’s @lubos who at least consider our suggestions and entertain our problems.