Need some help in Payslips


I need some guideline for the payslip transactions, Let’s assume some stuff;

I have an employer 'A", and he works for me on the projects.
If he completes the project for 50$, and there is the project damage, that is 10$, so how can i write this in the payslip?

When i add 50$ for the earning tab in the payslip and 10$ into the deductions, the 10$ will shows to payroll liabilities. But actually the project damages is comapny’s profit.

Project damages will be add to payslip, if the employer delivers the project late.

So please tell me, where can i show the project damages to the payslip, that also shows to the employer and finally it shows in the earning section.


I am assuming that, like one of your previous topics, you are writing employer when you mean employee.

Deductions are the wrong things to use, because deductions are for items payable to outside entities, like taxes.

You need to create a payslip earnings item for damages. Then, when using it, enter negative numbers.


Too slow - Tut got there first!
I take it you want to show $ 10 as revenue/late fees for the company and € 50 as costs / wages?

This doesn’t seem proper accounting but it can be achieved by creating

  1. Income account eg Late fee
  2. Payslip Earning item “Late fee” and set it to effect the “Late fee” account rather than “wages”
  3. On the payslip enter +50 for wages, -10 for late fee

That’s it

Thank you…

Now i have added a new account “Project damages” as income side, and create a new field in payslip item, “project damages” and i will make this negative while adding the amount. Now its shows perfect,
but why its shows 50 in wages ? it needs to be show 40 in wages
please check screenshot

@Joe91 is right about this not seeming to be proper accounting. You do not make income from your employees unless they buy company products or services as outside individuals. (If that is what you saying, in fact.)

So perhaps you need to provide more information. As I see it, wages owed to an employee for a project are properly entered on a payslip as an earnings item. That would be the 50. If there is a reduction, that can also be entered as a negative earnings item. That would be -10. The result would be net earnings of 40, which would show up in Employee clearing account as a liability and in Wages & salaries as an expense. No income account should be involved.

Let us imagine you started a job expecting to receive 100 from a customer, pay your employee 50 to do the work, and make 50 in profit. Because your employee damaged whatever was being worked on, the employee makes 10 less than would normally happen. But you don’t automatically make 60 profit, because you have to repair the damage. What is missing from your big picture is the repair costs. Who fixes what was damaged? How much does that cost?

Project damages mean if employee unable to deliver on time, then some amount will be deducted from the employee total project amount.

Let’s make this very clear…

I have given a project amount 10,000 form the customer. I forward this project to my employee at 5000. that means, i have to pay to the employee 5000 and remaining 5000 will be profit for me.
unfortunately, employee unable to deliver on time or do half work, so i need to deduct some amount, lets say, 2000 from the awarded amount 5000 to the employee.

Now In Manager, i will do accounting like that.

First, i will make sale invoice for 1000 for the specific customer. And i will pay this using the bank transaction or cash transaction once customer will pay,

Now there is an issue with the employee accounting.

I have to make the payslip for that and added the account, “Project Damage” on the income side in charts of accounts. screenshot below

Now the issue is, when i will go to my summary, the income is increasing by 12000. that means,

Income Side:
Customer Sale 10000
Project Damages 2000

Total : 12000

But it seems to be 10000 as the only income was 10000 project by the customer.

Post screen shots of the Edit screens for the payslip items for damages and the regular earnings for your employee.

almost seems as if employee is not an employee but a subcontractor.

That is how it has seemed to me from the beginning of this thread, too. @Rehan_Arshad is trying to account for expenses as if they are income. If the employee is really an employee, being late just leads to higher wage costs. But the story keeps changing, so it’s hard to understand what is actually being done.