Hello all,
i wonder what account should i fill in here:
Hi @RoyHu,
“Salary Component” is like a building block of an employee’s salary. It could be something like their basic pay, overtime, or deductions like taxes.
When you set up a Salary Component, you need to specify which financial account it’s connected to. This account is used to keep track of the money associated with that salary component.
For example, if you create a “Basic Salary” component, you would link it to an account like “Salary Expense” to show how much money your company spends on salaries.
So, the purpose of specifying an account for a Salary Component is to help your company keep its financial records organized and accurate. It ensures that all the money related to salary components is correctly accounted for.
I hope this helps.
Thank You!
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Hello @NCP ,
thank you, that is very nice of you help me a lot, as i understood, this is an account under expenses account in the account chart, all my salary components need to connect to it to keep financial records, right?
Yes, you’re absolutely right @RoyHu,
link each salary component (like basic pay or bonuses) to an expense account in your chart of accounts. This way, you keep track of how much money is spent on each salary component, making your financial records accurate and organized.
Thank You!
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