Accounting ????

[Faraz dot.com]

Dear all,

Pls tell me, if we give employee bonus so we will make employee as a supplier then make invoice so which account we use in invoice distribution ????

Thanks

F.khan

[karthikeyanp1981]

Hi Faraz Khan,

i am not sure whether Payroll can handle this part or not .. if it can, an element can be created for Bonus (as one time expense for organisation) and paid to the employees on the monthly payroll run ...
If the same is not met by Payroll, as you said we could do it from Payables as well ...

Now in both the above cases, you need to map this expense to an Account code combination, this account would be purely determined by the organization as to how they want to account the bonus expenses ...
(Most likely an account type of Expenses as determined by the Accounts Department ...)
The flow would be ,

Step 1 - On creation of Payables Standard Invoice ...
Debit - Bonus or Bonus Expense A/C ****
Credit - Payables Liability A/C ****X

Step 2 - On creation of Payment ..
Debit - Payables Liability A/C ****X
Credit - Cash/Cash Clearing A/C ****X

Net Impact is ..
Debit - Bonus or Bonus Expense A/C ****
Credit - Cash/Cash Clearing A/C ****X

Regards,
Karthikeyan