A salary is a form of periodic payment from an employer to an employee, which may be specified in an employment contract.
How to record Salary?
In Envoici this can be done as a first step, creating the Salary account. Go to Accounting > Chart of Accounts > New Account
Fill in all the details :
Enter the account name – Provide the name of new account head in Name
Select account group from the drop down – Select the corresponding group for new account head in Group drop down.
Enter the effective date – Record date when Account is created.
Opening balance- NILL ( there is no need for opening balance as it is an expense account .
Click on save and its Done.
Second step is for recording of Salary , For that user have to pass journal entries. To pass journal entry follow the below-mentioned steps:
Step 1: Go to Accounting > Journal Entries, click on “Add New Record”.
Step 2: Fill in the details like Date, Under project, if any.
Step 3: Under From Account select Salary account and debit it with the amount and select cash/bank account and credit it with the same amount.
Step 4: Fill the description box for eg. “Being salary paid” and
Step 5: Click on save and it’s done.