Payroll Payable Account

ERPNext Accounting
1

We are not able to set Payroll Payable account as our Bank account in the “Company” Page as they are not getting listed.

Without this setting, We are not able to Process the Payroll via ERPNext.

Can someone please help?

@admins FYKI/A.

2

Can you provide screen shots, steps & frappe/ERPNext version details?

3

The account needs to be a Liability account, not a bank account.

You need to have a “Payroll Payable” or similar account as a liability in your chart of account.

You use the payment entry option in the process payroll tool to actually define it as paid from the bank account.

https://frappe.github.io/erpnext/user/manual/en/human-resources/salary-and-payroll

1 Like
4

Hi Gentlemen,

We performed exactly like you said.

After this, when we were trying to preview the salary slip, the Gross pay and the net pay calculation were coming properly.

But when we proceeded onto the Process Payroll section, we were trying to create the pay slip and submit it.

The deduction is doubling up and there is a Net Pay error.

The system is too mind boggling. Before generating the salary slip, its coming correctly. While we are generating, there is error.

I know that you might be held up, but I request your attention @admins to solve this. We would need to generate the Payroll today somehow.

5

I certainly feel that its a bug in the system.

Version Details

ERPNext: v8.0.42 (master)

Frappe Framework: v8.0.61 (master)

Before Submitting, correct values are reflecting for Gross and Net pay, but after submitting there is error in the calculation.

6

Payroll Payable account should be liability account. The account in which salary to be paid to the Employees will be tracked. When paying salary, then payable account will be debited and bank account will be credited.

7

Yes, its like that only. All the above steps mentioned by Felix has worked.

My current issue is with the Net Pay after Salary Slip submission.

While creating and also in Draft, its reflecting properly, but after submitting, there is difference in the Net pay due to some internal calculation fuss due to which the final value is wrong.

8

Can you show some screenshots? Without reproduction steps, its pretty much impossible to respond.

9

While in draft, Gross Pay and Net pay correctly reflecting

Draft.JPG1192×588 48 KB

After submitted, Gross pay becomes the “Net Pay” in Draft Status and Net Pay is accordingly reduced.

Submitted.JPG1237×582 45.3 KB

Please help in resolution @admins

10

Check your “Special Allowance” line - there’s most likely a formula there which is incorrect.

This isn’t a bug.

11

This is the formula I am using

Special Allowance = base-B-DA-HRA-IT-TA-MA-CM-PBA

B- Basic
DA- Dearness Allowance
HRA-House Rent Allowance
IT-Income Tax
TA-Travel Allowance
MA-Medical Allowance
CM-Car Maintenance
PBA- Phone Bill Allowance

Of these, Basic, Dearness Allowance, Phone Bill Allowance is applicable for all.

Special allowance is 0 for certain Salary Bracket.

Please help with your advice.

12

There is a double calculation, I guess due to IT, Guess removing it may solve the case.

Request you to confirm.

13

Try making the change and seeing if it works for you.

14

Hi @umair

Baseon on IFRSs, Payrol Payable falls in Expense root type instead o Liability so that I cannot choose correct account for Default Payroll Payable Account. Any advice is much appreciated. Thanks.

15

We use accrual system while submitting salary slip. And for that one expense account is debited and another liability account is credited. We call that liability account as payroll payable account. You can give any name for it.

16

Please tell me from where i get Payroll Payable account? Since i don’t have permission but how can admin get this…There are some confusion. Need help.

17

To create a Payroll Payable account in ERPNext, you’ll need to follow these steps:

1. Set Up the Account:

  • Go to Accounts > Chart of Accounts.
  • Click the New button.
  • Enter the following details:
    • Account Name: Payroll Payable
    • Account Type: Payable
    • Parent Account: If applicable, select a parent account (e.g., Liabilities).
    • Is Group: Uncheck this option.
    • Opening Balance: If necessary, enter the opening balance.
  • Click Save.

Additional Considerations:

  • You may need to set up specific salary components and deduction rules in the Payroll.
  • Ensure that your Chart of Accounts is configured correctly to accurately track payroll-related transactions.

By following these steps, you can effectively create and manage your Payroll Payable account in ERPNext.

18

Thanks.
Please explain what is Payment Account & bank account in new payroll entry.