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Salary (Accrual)
Author: Bruno Reference Number: AA-08111 Views: 48 Created: 2018-04-06 17:14 Last Updated: 2018-04-17 10:35 0 Rating/ Voters

Salary Example (Accrual Account)

 

Situation: Employee Salary is released at the end of monthly period while the Employers Contribution will be deducted on the following month. User have separate account for the contributions.

Add Account

Step 1: Go to Accounts à Add an Accounts

·         SALARIES – expenses (to record your net pay 31st Jan)

·         SALARIES CLEARING – current liabilities (to clear all the amount after pay salary 31st Jan)

·         SALARIES EPF – expenses (to record the EPF deductions 31st Jan)

·         SALARIES ACCRUAL EPF – current liabilities (to clear all the amount after deduction is paid on 14th)

To separate different payment like EPF/EIS/SOCSO in a different account, kindly register the account separately as we treat Salaries EPF and Salaries Accrual EPF account and create the same transaction for all. The account creation is depending on the company’s reporting needs.

 

Create Journal Entry

Step 2: Go to Accountant’s Areaà Process Journal Entries


Salary Payment

Step 3: Go to Bankingà TransactionsàBankingà Create the transaction as follows:

·         Net Pay on 31st Jan 2018 (Selection: Salaries Clearing Acc)

·         Jan EPF on 14th Feb 2018 (Selection: Salaries Accrual-EPF)


Check Report 

Step 4: Go to Accountsà Reportà Account Transactions Report. Filter your account accordingly.


Attachments
SALARY EXAMPLE ACCRUAL.pdf 0.6 Mb Download File
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