[v11] Payroll Entry - Party Type & Party required for Payable account - Salaries Payable

[vrms]

seems a releated/same issue has been discussed earlier.

Salary slip submitted, but no journal entries

Howdy Community, hopefully someone understands this feature better than I do! I have successfully created salary components and associated them to expense accounts in my chart of accounts. I did for both wages/earnings and deductions. I have setup a salary structure using said components and then saved and submitted a timesheet based salary slip. Now when I go looking in the GL for the JV’s, I don’t see anything posted. I did not go through the “process payroll” feature. I just did a single p…

also there exists an Issue on github since 2017 Feature Request Submit Salary and post JV from salary slips · Issue #8421 · frappe/erpnext · GitHub

[aakvatech]

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.

Still testing to figure out the way.

[Prasanna_CSA]

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.

can someone help…

[vrms]

@aakvatech

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.

Still testing to figure out the way.

have you made any progress with this?

[Olubukola_Adeboye]

Any workaround found for this yet?

[vrms]

this illustrates what I am doing for the time being (not using HR module whatsoever, just journal entries)

[Olubukola_Adeboye]

@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.

[TetraComSA]

@rohit_w
@umair
Any update on this? we are having the same problem and this must be resolved…

Regards,
Yahya

[Reema_Mehta]

Hi,

This feature is working fine. Kindly find the below steps:

• Once, salary structure is assigned to employees and salary slips generated via payroll entry, they remain in draft.

• Submit the salary slips from the payroll entry itself, if you submit it directly from the salary slip section then an accrual entry wont be created.
  

  

• An auto entry is created in the journal entry section
  

  

• You can then make a bank entry via payroll entry itself against the accrued entry
  

  

Regards,
Reema

[Raymond_Liew]

Hi @Reema_Mehta ,

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.

[hmd]

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.

[Reema_Mehta]

Hi,

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:

Once this is done, you can try and run the payroll.

Regards,
Reema

[rodrigo.giacobelli]

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)

[vrms]

@rodrigo.giacobelli

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)

[Reema_Mehta]

You can go through the entire payroll process in the below link:
https://frappe.erpnext.com/kb/hr/payroll-process

Regards,
Reema

[Olubukola_Adeboye]

tried all the workarounds here but still experiencing issue. Keeps on complaining about my AR account which is not even linked to the payroll.

PS. i upgraded to version 12 and still experiencing this.

Any help would be grateful

[peterg]

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).

[elnaggar]

@Reema_Mehta

Submit the salary slips from the payroll entry itself, if you submit it directly from the salary slip section then an accrual entry wont be created.

I followed the same steps and it didn’t give either accrual entry nor individua l one, I submitted all salary slips (not from inside payroll) but couldn’t find in ledger of employees or payroll account any changes!

[peterg]

The salary slips don’t create accrual entries in the ledger. You need a journal entry for that, which can be created automatically by the Payroll Entry doctype.

[Reema_Mehta]

You have to submit the salary slips from the payroll entry, kindly check the GIF attached:

Hope this helps.

Regards,
Reema