Link Personnel costs with employees in Journal Entry


I want to link each Employee’s salary, vacations and other personnel costs to each Employee when I make a Journal Entry, through a Party Type: Employee and Party: NameOfTheEmployee

I’m thinking something like when I make a payment to a Supplier through a Journal Entry and link the payment to the Party Type: Supplier and Party: NameOfTheSupplier

-How do I do that? The only Party Types available in a Journal Entry are Customers and Suppliers.

Thanks in advance

not really clear what you mean. I think you might need to rephrase your question in order to get response.
It probably would be helpful to use terms as they are used in ERPNext instead of introducing your own terms (Client = Customer, Provider = Supplier, Party = ?)

You are right, @vrms. I edited the question for clarity.

honestly I still don’t get what you want to achieve and why you want to achieve that. Can it be you have 2 (unrelated) issues in this single post)

not clear what that means and why you want to do that. Secondly normally personal costs of an Employee are not being dealt by a business (and for sure should not be part of a business’ accounting).

  • “vacations” = paid leaves?
  • what do you mean by “personal costs”
  • what kind of Journal Entry would you want to link those to and why?

if you mean you are trying to have a Supplier payment to be linked to a Supplier (which has nothing to do with the above issue about employees and personal costs …, right?) … this could be achieved by a procedure as the following

  1. create and submit a ‘Purchase Invoice’
  2. make the payment through this ‘Purchase Invoice’

this procedure would create Journal entries and also link the payment to the supplier. Some procedure on the other side is “Sales Invoices” and payment of “Sales Invoice”

Maybe it also is possible to link an existing (independently created) Journal entry to a 'Purchase Invoice" is being done exactly. If you had such a scenario now you could workaround this by cancelling the existing (assuming have have ‘submitted’ it already) Journal Entry and then follow the above. I think the ‘cancelled’ Journal Entry will continue to exist (forever) but not appear in your books

In Costa Rica, you have 12 days of vacations a year. If the Company wants, it can pay the vacations instead of giving the days off to the employee

Not Personal Costs, but Personnel Costs or Expenses

Maybe the question is this: -How do I know how much have I paid a particular employee? If I make a Journal Entry that says that I paid $10,000 in salaries, -How do I know who did I pay it to? One way would be to have many accounts: John’s salaries, Jen’s paid leaves, etc. but I suppose that would not be correct or convenient.

Take into account that I am not an accountant.

I think there are several methods to do that. I am pretty new to ERPNext myself, so you shouldn’t take my advice as a suggestion more then a tested method

  1. use the HR system to calculate & pay salaries
  2. add a new Party type ‘Employee’, create a ‘Contact’ for each employee with the Party Type Employee. I could imagine like this you could add this info to a Journal Entry

I strongly think that method 1.) would be the much better idea. It’s maybe a little more complext to set up but I am sure this effort pays of on the long run

I think there is probably some methods to handel ‘expenses’ what I mean here is an employee uses own money to pay for something for the company. This expense is being reimbursed to the Employee afterwards) as well. Maybe that’s also integrated in the HR App

I think you need to look at the HR App as well here and learn how leaves (paid, unpaid) are being handled.

As these 12 days holidays you mention seem to be unpaid I’d say as long as they are not being used they don’t matter logically for ERPNext. It’s just an unpaid leave that doesn’t exist so to say. Or just a day of work that is paid for (unless you have to pay more then regular for a holiday that is not taken (similar to pay for overtime maybe)

The only Party Types available in a Journal Entry are “Customer” and “Supplier” and if you want to create a New Party Type the option is “Create a new Doctype”, and since Employee is already a Doctype, -How do I make Employee a Party Type like Customer and Supplier?

@rmehta -Could you tell me how to turn Employee doctype into a Party, with HR as Party Type so that I can keep track of Employees’ Expenses like bonuses or paid vacations in Journal Entries?

@CostaRica did you manage to achieve the above? I am also looking for the same solution.

Anyone got this working?