Payroll Accounting

HR Payroll

Mustufa Rangwala

Rules:

- if amount comes to negative then for debit account set it will create entry in credit side.
- if amount comes to positive then for debit account set it will create entry in debit side.
- if amount comes to negative then for credit account set it will create entry in debit side.
- if amount comes to positive then for credit account set it will create entry in credit side.

Where amount = salary rule amount calculated after python code / percentage etc

For deduction (TDS example) kind of salary rules since amount is negative and we are going to deduct it from employee salary then debit account will be "Employee payable" and credit account will be "TDS Account".

For allowance (HRA for example) kind of salary rules since amount is positive and we are going to give amount to employee salary then credit account will be "Employee payable" and debit account will be "HRA account".

For NET (NET salary) kind of salary rules since amount is positive and we are going to give amount to employee salary then credit account will be "Employee  payable" and debit account will be "Salary expenses".

Note: If there is missing debit or credit account on salary rule then it will create "Adjusment Entry" as contra entry.

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Set Partner on accounting entry:

For example: 

- HRA Salary rule -> If you are maintaining Salary register for this salary rule and you have set partner on salary register as "Your company" partner then it will take this partner on journal items related to this salary rules. Normally for all allowances and deduction partner can be empty or partner can be partner of employee in case of payble account.

- NET Salary rule -> Partner will always be employee's partner.

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