I am having a diffuctly in Salary Expense Allocation
here is an example
Employee Salary 25000
Employee has taken advance of 10, 000
I am using Process Payroll Function
Step 1 : Create Salary Slips … created
in the salary structure
Basic salary 25,000 deduction advance , 10,000
Net pay is 15, 0000
Step 2 : Submit Salary Slips … submitted (no transactions effect on chart of accounts)
Step 3: make bank Entry
Now in JV, Salary expense is showing 15000 (which is actually 25000)
kindly guide me how can i manage it ?
as per my knowledge, journal Entry should be
Salary Expense …25000 (DR)
Bank …15000(CR)
Advance Salary …10000 (CR)
The deduction is not linked with any expense account, there is no option available there
in my opinion
Earnings & Deductions should be able to be assigned to respective accounts
Like Basic salary …Salary Expense
Advance Salary / Loan Deductions …Respective Receivable Account
Interest on Loan …Other Income Account
Also Commission on Sales is not properly being allocated
sales commission to employe is not part of salary expense, its commission expense … even though its paid along with salary
in earnings type sales commission is added but during payment (STEP 3 IN PROCESS PAYROLL … BANK ENTRY)
its accumulated under Salary Expense Head