Recording gratuity expenses

1

We have employees who have left the company and we need to pay them back their gratuities. However, we may release these funds in the next three months. I need this liability to appear in our records. How should I record it?

2

There are various ways to dio this

  1. Use a journal entry to debit an expense account and credit the Employee Clearing Account/employee with the amount
  2. Create an expense claim for the amount
  3. Use a Payslip to record the amount
  4. Setup a new liability account and use a journal entry to record the amount