I am experimenting with the software to make salary payments. I have done an example wherein I have created Salary and Wages under Expenses Tab and then created a Salary item and linked it to this in the Payroll Items Earnings tab.
I then created a Deductions tab for Staff settlement of bills which the company pays and linked it to staff payables tab under the COA as a Liability.
In the Payslip I create a gross salary of 1000 with a deduction of 100 for Accommodation Electricity and the payslip shows wages payable 900 and staff payables 100 under the liability section.
I now go to spend money and pay the 900 as the salary to the staff. My P&L shows me 1000 as Salary paid and my cash balance reducing by 900. I have the 100 that I deducted in the payslip in the payables account.
How do I now settle this 100, so that it reflects under the expenses in the Electricity section in my P&L and also reduces my cash balance by 100, thus clearing the staff payables section in the liabilities section.
Please let me know if I have done anything wrong.
Also while browsing your replies to individuals regarding payrolls, you have provided links to manager guides to refer to for better understanding. Upon clicking these links it says the page is not longer available and has been moved.
Thanks in advance.