When paying employees it does not show as an expense in P/L report

1

Hi there

I am kinda new to Manager
I was wondering why is it that when I pay my employees, it doesn’t show as an expense in the P/L report
I made payslips for each month for my employees but when I pay them it clears the “employee clearing account” but it does not appear as an expense

2

The expense was recorded, as you saw, when you generated the payslips. This is normal for accrual basis accounting. At the same time, a balancing liability appeared in Employee clearing account. When you actually pay them, you are not entering a new expense. Instead, you are transferring an asset from a bank or cash account to clear the liability in the Employee clearing account.

3

@Zeid_Khalil ,
please read through Set up payslip items | Manager. your payment to employees will sure come in P&L, For this you have to first create payslip items (ex. basic salary, housing, etc), And when you select these payslip items while creating payslip every time, it will automatically add up in the salary&wages account in P&L.

4

ok
I get that when I make a salary payment I move money “assets” from cash to “employee clearing account” which was a liability

but then again I want the salaries that I pay to appear in the P/L statement as an expense … how do I do that please
Note: all my salary payments are bank transaction that are uploaded from my bank statement

5

As I said in my first response, this happens automatically when you create the payslip. This is explained completely in this Guide: https://www.manager.io/guides/9752. See the section Payslip effects.

The fact that your salary payments are uploaded with your bank statement has no impact on recording the expense. Those transactions are recording the use of money from your bank account to clear Employee clearing account. Normal procedures for doing this are described here: https://www.manager.io/guides/9768. You are just substituting the statement import for entering the transaction manually. You will not be able to set up bank rules to handle such transactions, because Employee clearing account is a control account and requires a second step to designate the correct employee. So those transactions will have to allocated manually during the importation process. See this Guide for more information on bank imports: https://www.manager.io/guides/9240.