You can use spend money to immediately pay for items bought and receive money to record cash sales, can there be feature like that with salaries too? Instead of using journal entries to record cash paid as salaries for all the workers.
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You can record salary expense under Bank accounts or Cash accounts directly. No need to use journal entries. If you want to prepare payslips for employees, you probably want to enable Payslips tab and Employees tab too.
I still didn’t get how to pay money Employee.
I have an employee who has a payslip of Rs 35000 .Now i want to pay him Rs 20000.How can i achieve this? Please explain the steps.
When you create a payslip, your wages & salaries and employee clearing account increase.
For example:
- Your payslip is 35,000
- then your
Wages & salariesexpense increases by 35,000 (debit) - and
Employee clearing accountliability account increases by 35,000 (credit)
So once you create payslip, you owe employee 35,000 until payment is recorded:
You can go to Bank accounts or Cash accounts tab, then click the Spend money button, then choose the Employee clearing account to categorize the payment.
If you do this you still have a liability under under account Wages & Salaries wich i understand need to be there for the balance sheet . But how do you pay and employee ?
Wages & Salaries is an expense account, not a liability account.
Liability account is Employee clearing account so when paying money to employees, you need to debit this liability account.
For example this is how you would record payment from a bank account to 2 employees.
But the same principle can be applied under Cash accounts tab, Expense claims tab or even under Journal entries tab.
Keep in mind payroll module is still work in progress. Once done (soon), there will be plenty of tutorials how to handle all kinds of situations.
Cool.It worked. Thanks @lubos
I am stuck. I created a payslip 2000 but i paid him 2100 at the end of month.
When i create the profit and loss statement for my employee, only wages and salaries appears 2000. 100 is missing on report. 100 is overpayment. What can i do. How can i reflect to report this overpayment.
Overpayment to employee doesn’t show on P&L, it is your asset, not an expense.
I have a problem. What am i doing wrong or what is the wrong ?
Payslip
- Wages & salaries = 2000
- Deduction = 100
- Total Payslip = 1900
I paid 1900 to my employee and i paid 100 for this deduction ( traffic fine ). Then i created profit and loss statement for my employee
- Wages & salaries appears = 2000
- Traffic Fine = 100
- Total payments = 2100
Traffic fine amount would be negative on your P&L, so the net amount would be 1,900.
First, after i create payslip traffic fine appears negative. After i pay traffice fine appears 0 on summary. But when i create P&L for my employee, wages & salaries appears 2000, traffic fine 100.
How do you create P&L per employee? Do you use tracking codes?
Yes.
OK, then when recording payment of fine, select tracking code that relates to that employee. Then traffic fine expense will be $0 as per P&L for that employee.
I did already like that.
Then the date you have paid for the fine is outside of date range for which you have created employee P&L
Traffic fine payment date 30/09/2014
Payslip date 30/09/2014
First i paid traffic fine then i created payslip. I changed the traffic fine payment date as 01/10/2014. Everything looks fine. You are right. But why is this happening like that ?
Oh sorry. Nothing changes like that. Because traffic fine will appear on 30/10/2014 report at this time.
There is no problem ?