Hi
I apologize of this has been asked and answered. I’m new here, and the closest I could find was not exactly the situation I’m facing.
How can I add a loan item on a PaySlip, so that the PaySlip indicates an amount loaned to an employee as follows:
Salary - $1000
Loan - $100
Total: $1,100
And how can the loan then later be settled by the employee?
Thank you,
Johann
Define a payslip item for the loan. Allocate to a asset account for employee loans. Or you can create that asset account as a control account made up of special accounts and create the loan as a special account for the employee.
Thank you Tut. Should I add the payslip item under Earnings, Deductions, or Contributions?
I would separate this two things. A loan to the employee shouldn’t be shown on payslip.
It the deduction for repayment that has to be shown on the pay slip.
Treat the loan as a different transaction.
Spend money into a control account having special accounts of the name of the employees on loan.
Every month/week when you run a payslip, just create a deduction item select the correct special account.
I will have to sit down and see if that possible in Manager. I’m in town at the moment. I will find a solution for you.
Then also, is interest on the loan involved?
I would agree if the loan was advanced separately from the payslip payment but if the loan advance was paid as part of the payslip payment (nett + loan) then it should be included so that the payslip and payment reconcile.
As the loan will be handled via a Balance Sheet - Asset account, you can only use Deduction Items. Balance Sheet accounts can’t be selected under Earnings items.
So when you advance the loan, assuming that it is part of the payslip payment, you would enter the amount as a negative and any repayments as positives.
Loan Advance
Loan is completely diferrent from payslip item.
Payslip shows your salary expense and the sumary of the employee’s earnings, tax deduction etc.
Employee clearing account records the amount your employees will receive from company or company will receive from them if any advance/loan issued.
How to issue loan/advance?
Record: Spend Money
Account: Employee Clearing Account > Omar Faruk > …$100
Settlement
If you deduct the loan when you pay, go to payslip > Spend Money…
or
Note: Deduction Items shouldn’t use for loan deduction. It’s for tax deduction.
When you pay your employee, give him a printed copy of the payslip.
You can use a pen on the payslip to write the deduction bellow the total amount.
It’s how I deal with load/advance.
Payslip items can be used for many more things than just earnings and tax deductions. That is why you can select the accounts they post to.
