hi Guys,
I just noticed that when we submit salary slip, no accounting entry is created unless payment is made. Sometimes it does happen the payment paid is delayed for whatever reason and hence in that scenario it appears as 2 salaries have been paid to the employee whereas it should be that when the salary slip is submitted an accounting entry should be passed which is:
Dr Salary expense
Cr Salary Payable.
On payment it should be
Dr Salary payable
Cr Bank/Cash
The above treatment is as per the accounting standard principle of accrual. in which the expenses relating to the period in which they are occurred should be recorded.
Although, there is a workaround but this will make things appear more systematized