I am trying to get through a payment of salary in v11.
I have set up as per these instructions
a Salary Structure
a Salary Structure Assignment connecting this to my test employee
a Payroll Entry of which I have created a Salary Slip
what I find not logical thus far is that submitting the Payroll entry apparently does not create a Liability (in the same logic as a Purchase Invoice for example.
As I believe the next (and possibly final step) would be to click the Make Bank Entry Button from inside the Payroll Entry. But the system does not allow that to go through with the error message
Party Type and Party is required for Payable account - Salaries Payable
Strange Detail is the the complaint is for Row 2 while there is only one row in the Payroll Entry. Anyway the main point is the there is no option to set a party type or even Party in the Account Payable Account Salaries Payable, neither in the Employee’s entry.
the problem as per this Topic has shifted slightly. Now (after yesterday’s and today’s updates for v11) the mentioned Button in the Payroll Entry Make Bank Entry does not appear any longer. However when You want to create Journal entries for this from the Dashboard the same error (“Party Type and Party required for Payable Account - Salaries Payable”) still appears.
Still it is not possible to choose an Employee in the “Party” section of the Journal Entry. A supplier could be chosen. Any switch to choose “Party Type” is nowhere in sight.
What generally bugs me is that I feel this is not logical and there seems something missing.
there needs to be a two-step process (exactly the same as in relation to t a supplier)
a liability is created (Purchase invoice for Suppliers, Salary Slip for employees). This shoudl involve a Liability account just like “Salaries Payable”
an actual transfer of money from a bank account to an expense account takes place which balances the previous Liability.
Faced this problem. This is because Salary Payable account is defined as Account Type Payable. The workaround for now is NOT to set the Account Type. The downside is that the Payment Entry cannot be used and the bank reconciliation would not be complete.
Hi, got any solution for this issue? I am facing the same problem, how do I add Employee in the Party Type. When Account Type is selected as Payable, I am able to get Employee in the Party Type but if a loan is given to Employee the Account Type should be in Receivables.
@vrms thanks for the illustration and this is workable for our business right now. But this only applies if you are a micro business with few employees lets say five. What if you have a business with 50 to 200 Employees.
I hope the team can find a way to solve this soon.
I have the same issue. Unlike your situation, when I click on the “Submit Salary Slip” button as shown below, I will get an error message. Hence, I couldn’t proceed to the auto journal entry.
Check each salary component if there is a payable/receivable Account being linked to. If there is, you need to clear the Account Type “receivable” or “payable” in the Chart of Accounts.
That creates an accrual journal entry but the party (i.e. employee name) is not added, which I think is really important in tracking payables or receivables from employees.
So in your chart of accounts, there are default account heads that you have created. Go to the Phone Allowance account and remove the account type payable / receivable from there, leaving it blank. Screenshot attached below:
And what about the two steps process that @vrms was talking about?
It seams logic to me that any payment should first create a liability and then a real money transaction. But I can only create bank transactions using payroll.
Anyone knows how to do the process correctly in the erpnext? (Do it manually for each employee doesn’t qualify as correct)
I stepped back from Payroll/Salary Slip for now and use manual Journal Entries for both as per this how-to for the time being. Mainly because in my usecase the salary is paid in a non-default currency (which is not possible with Salary Slips and any of the other HR tools)
My understanding here is that the Payroll Entry is really designed to work with an external payroll system. Many companies, for example, transfer all payroll expenses as one lump sum to a separate bank account, and then partition it out from there. The aim is to separate HR and accounting for privacy/secrecy reasons.
Unfortunately, not all companies do it this way, and the Payroll Entry doctype isn’t very flexible. It should be possible to refactor Payroll Entry to create individual liabilities if the account type is marked payable, but it’d be a complex job (at least for my limited understanding of Frappe).
