Salary_Payment_without_salary_slip.md

Requirements

• an Employee
• a Payable account for Salaries (i.e. Salaries Payable)
• an Expense account for Salaries (i.e. Admin Salaries)

Accounting Transactions

It takes 2 Journal Entries for this to work.

• One creates the Liability (a salary that needs to be paid) and
• a second one equals that liability with a concrete money transfer (from the company to the employee)

1. creating the liability

A Journal Entry with two rows

• row 1 Salaries Payable: Credit (Party: Employee #1)
• row 2 Expense account: Debit

posting date is the date when the salary is due.

Attention here!: In order to be able to select the Employee as PArty Type you need to open the details of the entry. By default the Party Type it is set to be Supplier

2. balancing the liabilty

with an actual money transfer (Company > Employee #1)

A Journal Entry with two rows

• row 1 Salaries Payable: Debit (Party: Employee #1) with reference to JE above
• row 2 Company Bank Account: Credit

posting date is the date of the actual bank transfer (most likey on or after the posting date of Journal Entry 1

---

tested on v11 on 2018-02-01