I have entered details for each of our employees and then under “Payslip Items” I created the very basic items such as salaries and transport allowance. The salary was pointed to the salary account and the transport allowance to the transport account.
I then went to payslip and created one for the month of June. After creation, I chose to “Spend Money” wherein I opted for the bank transaction, created a new bank transaction. Here, information such as the employee details and the net pay appears with the entire amount being passed on to the “Employee Clearing Account”.
Two things here:
- Why does the account detail as reflected in the “Payslip Items” not get carried over to the “Bank Transaction”. Ideally, it should debit salary with X, transport with Y and credit bank with X+Y
- How do I clear the clearing account? If it has to be done manually, it would be a lot of trouble going through the Payslip summary statement and transferring each employees amounts one by one to the salary and transport accounts respectively. Ours is a really small organisation where I could go through the trouble but for a medium sized company I would assume it would be a task by itself.
OR, Did I do something wrong?
Thanks in advance for any input.