Greetings to all.
Could anyone help me. I wish to use the payslip for my employers salaries, and I wish to pay from a particular cash account. I have two cash accounts: DIRECTOR and ACCOUNTANT". How do I pay from the DIRECTOR cash account.
I tried using the payslip and realised that the transaction featured in the profit and loss statement, but not in any cash account.
This is important to me, because, as director of my small enterprise, if I pay salaries from the DIRECTOR cash account, physically I will have less money in my account, but on the computer, the account doesn’t show the deduction. And I don’t know from which account the salary is paid. (But Manager records it as being paid and has it feature in the Profit and Loss Statement)
So how do I link the payslip to the DIRECTOR account such that when I pay salaries I see the deduction in the DIRECTOR cash account?
thanks for any help.
A Payslip never affects a Cash or Bank account as it is not a record of a payment but of an expense and a liability
The payment of the payslip affects the liability and the cash or bank account
This is explained in this Guide: Pay employees | Manager.
In addition to the guides referred to you also need to be sure you created one Cash Salary Accountant and one Cash Salary Director control account in Settings → Control Accounts → Bank and Cash Accounts
You then need to assign the DIRECTOR cash account to the Cash Salary Director Control Account and the ACCOUNT cash account to the Cash Salary Accountant Control Account by editing these bank accounts you created.
When clicking on New Payment on the payslip view you can then select the respective bank accounts for the respective employees and will see in the Summary the amounts paid from DIRECTOR and from ACCOUNTANT cash accounts.
If you also created a Charts of Accounts and Expense GROUP called Employees and in that group and account for Director Salaries and for Accountant Salaries you can then assign the payment to each and also see in Summary how much each got.
EKO, thanks very much for your contribution which seems to be closer to what I am looking for. I will try and get back to the forum
Thanks Tut.
But the screen I get when I click payslip on my computer is different from the screen on the link you have just sent.
And also, on my screen, when I enter salary, it affects the profit and loss statement, meanwhile the link you sent said I have to enter the payment manually in DIRECTOR account
@Joe91 already explained why you have to add a payment against each payslip item and the instructions in the guide provided by @Tut explain that there are 2 approaches and in your case the Single Payslip Payment approach as the Cash Accounts charged are different for each is the appropriate one. Manager v22.8.28.334 in a test business I created shows the following screens:
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Payslips
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View Director Payslip
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After clicking on New Payment on the payslip viewscreen you get the following where I selected the Director Cash Account and you could add descriptions etc to your liking
You will after payment see in Summary that the Director Cash control account you created in Assets is deducted and the Director Salaries account you created in Charts of Account under expenses is deducted.
Let’s get several things corrected:
First, @eko provided information on how to have these individual accounts show separately on your balance sheet by assigning them to dedicated custom control accounts. While you might decide to do that, it is entirely unnecessary. All bank and cash accounts are shown by default as part of the Cash & cash equivalents control account.
Second, your issue did not arise because your chart of accounts was set up incorrectly. It arose because you did not realize you had to enter actual payment transactions to record the movement of funds from a cash or bank account. You initially thought that would happen by recording the payslip.
Third, the Guide I linked you to includes a dozen illustrations. When you say, “…the screen I get when I click payslip on my computer is different from the screen on the link you have just sent,” what do you mean. And what do you mean exactly by “click payslip?” You could have meant many different things. Further, screens can look different based on your edition, operating system, features enabled, transaction content, and other things.
Fourth, I don’t know where you are looking, but the Guide I linked says nothing about entering anything “…in DIRECTOR account” It does not mention such an account anywhere. So I don’t know what you are referring to. Please explain.
Finally, despite some confusing explanation and justification in your initial post, you actually asked a very straightforward question: why does my cash account balance not decline when I enter a payslip? @Joe91 gave you the very simple and straightforward answer: because you have to enter a payment. I linked the Guide that explains it. But you still seem confused.
This is the screen I get when I click payslips
I am using the free version of Manager, latest version
“Second, your issue did not arise because your chart of accounts was set up incorrectly. It arose because you did not realize you had to enter actual payment transactions to record the movement of funds from a cash or bank account. You initially thought that would happen by recording the payslip”
When I record the payslip it affects the profit and loss statements without me entering any transactions on my DIRECTOR or any other account.
No, it is not, because there is nowhere in the program you can click any button or link named Payslips. The screen shot you just posted is the entry screen for a payslip that appears when you click the New Payslip button in the Payslips tab.
The reason that screen doesn’t look like anything in the Guide I linked is that the Guide has nothing to do with creating payslips. It only covers paying employees, which is what you originally asked about. The Guide covering creation of payslips is totally separate: https://www.manager.io/guides/9752. If you read that Guide, you will see exactly the screen you just showed.
That is true. And the reasons have been explained to you by @Joe91, by @eko, and by me. It seems you do not understanding the accounting behind creating payslips and paying employees. I suggest you read the Guides that have been linked in this topic again. They are all related. Each explains part of an integrated process. None of the steps can be left out.
You are right. I am new to Manager and trying to learn how to use it. Thanks for your patience with me.