DESKTOP EDITION CLOUD EDITION SERVER EDITION GUIDES FORUM

Payslips hitting Employee Clearing Account


#1

Hi,

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:

  1. 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
  2. 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.


#2

After a pay slip is generated you technically haven’t paid the employee, you have just accrued or recognized the need to pay the employee.

Manager places this amount which has to be paid to the employee into a lability account. It is wrong to credit cash/bank or deduct it from bank/cash immediately because salaries are accrued first before they are paid to the employees.

Now to clear the amount in the employee clearing account, go to the bank
account you want to spend money from to pay the employees. Select spend money and select the employee clearing account. Now select the employee in question and enter the amount you are paying.

This is the best way to do salaries. Manager keeps track for you the balances due to be paid to employees perfectly.


#3

Be sure to read the Guides:
https://guides.manager.io/9752
https://guides.manager.io/9768

Because the bank transaction does not involve those details or the accounts they are posted to. They are on the payslip. Paying an employee is equivalent to crediting your bank account and debiting Employee clearing account. Salary and Transport were debited when the payslip was created and Employee clearing account was credited.


#4

Thank you friends :slight_smile: I have now understood that part of it. I guess I got confused cause I saw all the amounts lying in the Employee Clearing Account and did not see the relevant numbers under the Salary and Transport allowance head.

After your help and having cleared the employee clearing account, I noticed that the amounts still did not reflect in my expense account and that is when I noticed all those amounts lying in my Suspense Account.

When I defined the payslip items, I had selected Salary and chose the salary account and for transport allowance I chose the Transport Allowance account. Would you know why it still debits those to the suspense account?

Thanks again for all the help :slight_smile:


#5

You will have to post screen images of the Payslip transactions (in Edit mode) in order that answers can be given.

Include images of the payslip items update forms as well.


#6

The Suspense account is where Manager stores incomplete, unbalanced, or incorrect transactions until you can fix them. See this Guide: https://guides.manager.io/10676.


#7

Thank you Joe & Tut for your reply.

Attached are screenshots of the Suspense Account, Payslip in Edit mode and the bank transaction in edit mode. I hope that these pictures will help you help me understand where I have gone wrong :frowning:

Thanks again for all the help!


#8

Now go to settings and give us a snap shot of the ‘Salaries’ payslip items settup under ‘Payslip items’ settings. Should be under earnings. We have to know the liability (credit) and Expense (debit) accounts you selecting for that payslip item.


#9

A big thanks to you all those having the patience and taking me through step by step! Much appreciated.

I hope these are the two pictures you wanted to see.

PaySlip%20Items%2002


#10

Not quite sure what is wrong here.

The payslip shows Wages of 6,000 so that accounting entries are

Debit Wages 6,000
Credit Employee Liability account 6,000

and a Spent Money transaction of 6,000 with corresponding accounting entries

Debit Employee Liability Account 6,000
Credit Bank Account 6,000

With screen shots the accounts I can’t see anything wrong here.

You mentioned Travelling Expenses but you have not included them in the payslip.

You said you posted copy of suspense account, but you didn’t


#11

Hi Joe,

Me too … don’t see what could be going wrong :thinking:
Yes, for this one employee there is no transport allowance and hence not included.

With regard to the suspense account, I’ve just pasted the single line that refers to this particular employee.

If required, I could send the entire back up to anyone if it can help. And … no, nothing confidential in it right now as we are still setting it up and figuring our way forward.

Thank you


#12

if you click on the Edit button on the transaction in the Suspense account, it will show the transaction that is missing the accounting information


#13

And have you got the dates set correctly on your summary page?


#14

Hi Joe,
When I click on the suspense account, I see the list of all the employees with their amounts. I click edit on this particular employee and get:

With regard to the date on the summary page, I have put it this way:
Summary%20-%20Start%20Date

Everyuthing looks alright and yet I just cannot get it out of the suspense account!


#15

Post your Chart of accounts looks like Wages and salaries is missing.


#16

This is the key to your problem, @Paparazzi. If all your employees’ payslips are in Suspense, you are making a systematic error. Based on what you have shown so far, I don’t know what that error is. But I would like you to try one thing.

Edit James Merry’s payslip. Where the default, gray “1” appears for Qty, actually type in the number 1. Then Update the payslip. Tell us what happens. I just tested this, and it did not make any difference, but something subtle is obviously going on.

Can you also post a screen shot of your Chart of Accounts under Settings? I am looking for unusual things you might have done with account setup or naming that could be causing the problem.


#17

Send me your business file, I will inbox you my email


#18

Hello Friends,
Sorry, we had closed by the time I saw your message and since we only had the desktop edition (since we were setting it up), I did not have access. Following my inability to provide you the information, I have now subscribed for the cloud edition so that I will be able get my data at any time :slight_smile:

With regard to the chart of accounts, the part that relates to salary & wages is as below:

When I click on Salary, I see:
Chart%20of%20Accounts%20-%20Salary

I really hope the problem is somewhere here so that I can finally get over my problem and start with real data.

Thank you
:slight_smile:


#19

I thought perhaps we were making some progress! As @Joe91 noticed, there seemed to be a problem with your naming of accounts.

Your payslip earnings item, Salary, is set up to post to the expense account, Wages & salaries. That is the name of the default account for earnings items.

However, your chart of accounts shows that you have renamed the default account as Salary, with account code 220100. That is the designation that should show when you set up the payslip item. But it doesn’t. So that is a bug. I will submit a separate bug report on that problem.

The confusing thing is that while the new name for the account does not show when you set up the payslip item, it does show in the chart of accounts and on the Summary page. And payslip entries using the earnings item with the old account name show up under the new name on the Summary page. Despite the discrepancy, such payslips do not go to Suspense.

I think this is a problem for @lubos to examine. I will invite him into this topic.


#20

Thanks Tut :slight_smile: Really appreciate the help you and Joe have extended.
So, for now, I’ll just go ahead and enter all the other information … I’m getting my colleague to all the information from January onward as it is not too voluminous. Once the bug has been fixed, I guess either the problem will rectify itself or worst case is that I’ll just have to go back and edit the payslip for about 6 months. This again is not too much given the benefit that the cloud edition of Manager will give.

Once again thank you … and please … if it is not a problem. can you let me know when the bug has been fixed by re-visiting this thread?