In this request, we are trying to clarify the possibility of allowing the Human Resources Department to distribute the employee’s salary according to the accounting dimensions (the project, cost center, or any additional dimension), as it allows the distribution of accrual accounts according to the contribution percentage.
Do you need this Feature?
There is a need for this feature in some Companies for the ability to divide the costs and expenses of employees who are charged to more than one accounting dimension
Ex: Non-profit Organizations, and Health Facilities.
Should we merge this with another Feature, or split it into more categories?
This feature is an integral part of Human Resources (Payroll)
The Changes are in (Salary Structure Assignment, and Payroll Entry)
First, in Salary Structure Assignment
Only one field - Child Table (Contribution Table) contains:
Cost Center (Link)
Accounting Dimension (link)
Contribution Percentage (Percentage)
The value of Contribution Percentage must be greater than Zero and equal or smaller than 100%.
The sum of contribution percentages must be equal or small than 100%.
- Add the child table (DocType Name) in accounting dimension var of erpnext hooks.
Second, in Salary Structure Assignment
the Accrual JV in Payroll Entry, the GL Entry will be: Distribute the expense accounts of earning components based on contribution percentage.
*if the contribution percentage are:
Cost Center1 | Project1 | 50%
Cost Center2 | Project2 | 50%
*and the Salary slip is: (earnings)
base (5213 - Salary) | $1,000
#then, the Accrual JV will be:
2140 - Accrued Payroll Payable
5213 - Salary | Cost Center1 | Project1 | $500
5213 - Salary | Cost Center2 | Project2 | $500
2140 - Accrued Payroll Payable | $1,000
There are some extra features in Payroll Entry – helpful in Accrual JV impact - which are:
- Accrual Type (Select): the options: (by Total, per Employee)
by total, as it works now the net amount will be in one account for all employees, the Account not “Payable”
by Employee, the credit side will be duplicated according to the employee and the account will be “Payable”
- Distribute the deduction component’s accounts like earning (check).
if it is checked, the accounts of deduction components will be distributed according to contribution percentage, exactly like earning component accounts.
- Does not merge the accounts in Accrual (check),
if it is checked, the Accrual rows will be for each employee, and the employee’s designation will be in the remarks.
We have already made these customizations, if you would like us to share them, it would be our pleasure.