Issue Loan or Adv to Employee and adjusted Automatically at salary
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You don’t deduct advance salary on payslip. Payslip will show net pay and it’s up to an employee to reconcile they are actually receiving less because they have received some amount in advance.
From your point of view, you know you have paid them exactly how much you are obligated to pay by looking under Employees tab and seeing their balance to be zero.
What I’m planning to do is to make payslip work like a mini-statement which would automatically show payments in advance on payslip. So from data-entry point of view, nothing will change. It’s just that payslip will automatically show these payments in advance amounts so employees don’t get confused.
3 MONTHS LATER
When will we get this feature? I have same question like Arun. Thank u.
i have gone through search option
but cant find relevant issue solution, please find above Lubos Reply to any body in november
advance and loan amount issued during the month , can’t be reflect in pay slip
i want to issue payslip to my employee with complete breakup
please guide step by step
@BASITBAWA, the post you quoted is almost three years old. Many changes have occurred to the program since then.
What you are thinking to do with payslips is not appropriate, because payslips are tied to expense accounts. A loan to an employee is not an expense of your company. It is a payment to an outside person who happens to be an employee. It creates an asset, the loan.
One way to handle an employee loan is with a cash or bank payment. This can be posted to an ordinary asset account created for the purpose, a special account in the employee’s name, or Employee clearing account, at your discretion. If you use the Employee clearing account, you will see the net effect on the employee’s balance whenever paying the employee. But nothing will happen automatically. And the loan will not show on a payslip, because payslips are not statements. They are individual transactions that create liabilities to pay the employee, as well as outside entities, such as tax authorities.
When you pay the employee his or her wages, add a second line to the payment transaction. Enter the loan recovery for the period as a negative number, posted to the same account where you first recorded the loan.
Only Payslip Earnings are tied to Expense Accounts, Payslip Deductions are tied to Liability accounts and that is where staff loans / advances can be handled.
Read this topic Advance salary option?
Generally, yes. Deductions can also be tied to asset accounts that are not automatic accounts (hard-coded for other features). But I was responding primarily to @BASITBAWA’s statement, “advance and loan amount issued during the month , can’t be reflect in pay slip.” My point was that the advance could not be entered via a payslip, because earning items, which would reflect money the business intends to pay the employee, are tied to expenses. I did not address the approach of using payslip deductions to recover the loan.
Is there something better in 2020?
Better than what, @JulianMcGrath? Responding to a thread over 2 years old, that mentioned a discussion another three years older, without telling us what you are trying to do is not going to get you any help. What do you actually want to do?