Payroll accounting relates to company managing employee's compensation recordings that includes; Wages, Salary, Bonus, Employee Loan etc. which can be earned by it's employee.
1) In order to perform Payroll accounting procedure, first we start with earning process of accounting. Earning Process includes Bonus generation.
Bonus can be of different types, Festival Bonus, Incentive Bonus, Sales bonus etc.
PF > Earning > Bonus Payment
While generating a PF Bonus to the Employee in the earning process. you need to figure out the proper accounting entry hit in the application for maintaining an alligned payroll accounting. The above screenshot shows the bonus generation for employee from the company. The debit acccount will be the Bonus Payable account and the credit account will be the Bonus Expense, as the bonus is regarding as an expense from the company. For the Bonus Payable and Expense ledger is maintained you can check out all the transaction of bonus festival so these are all part of payroll ledger which can be maintained very well from the application.
For the Payroll earning such as bonus procedure is done from the application, SPV will be generated.
2) Payment process: Payment process includes salary payment to the employee where an accounting transaction occurs as well too.
Payroll > Payment > Salary Payment
Notice that will making the salary payment the debit account selected will be the payroll accounts payable and the credit will be any cash accounts or bank from the company. So there is also a payroll account record maintenance for the salary payment process which can be tracked and managed easily from the application.
Notice that for salary payment a paritcular SJV will be generated in the application for each payment.