Controlling the payment of wages to employees is an essential part of financial accounting in every company. This article describes one of the possible ways that you can adjust according to your business processes.

Step 1. First of all, you need to set up a wage calculation in the employee's profile so that you can create a Payroll Report and see the final amount.

Step 2. Create new cash flow items on the Settings > General > Accounting page.

We recommend that you divide the main accounting payments of wages into several items, for example, Payment of Wages, Payment of Prepayment, Payment of Bonus, etc.

Now you can start controlling payments.

1. The Payroll Report shows how much the employee earned for a certain period of time depending on how often you calculate it (1 week, 2 months, 1 month, etc.).

2. Go to the profile of the client who is also an employee. In the Balance tab, create the Balance Correction for the amount of calculated wages with the value “Payable”. You can specify in the comments what period the wage will be calculated for.

When the balance is adjusted, there is no income or expenses in the cash flow items so you simply acknowledge your obligation to pay the employee.

3. When you actually give your employees money, you need to make the payout in the Payments tab of the client-employee profile.

This can be a full or partial payment. Depending on the type of payment you should choose a cash flow item and specify the period of payment in the comments, if necessary.

In addition to comments, you can use tags for payments for further quick searches of transactions.

You can also keep records of penalties and bonuses in the Balance tab. In the comments, enter the reason for the penalty or bonus.

Thus, you will reduce or increase your payment obligations to the employee. At the same time, the Cash Flow Report will show everything correctly because the penalty/bonus of the employee is neither an income nor an expense for you.

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