It’s ok to record employee salary by individual records or by lumpsum for the whole company. While recording by individual records is easy to view and track while recording by lumpsum is more confidential
Method 1: Simple and Easy Solution
Advantage
- Easy to understand by user
- No Payable and Accrual involved
Disadvantage
- Profit & Loss may not accurate as APRIL payment is MARCH Salary
G/L Account involved
| Account Code | Account Description |
| 981-0000 | SALARY |
| 982-0000 | EPF |
| 983-0000 | SOCSO |
| 310-0000 | BANK |
G/L > Cash Book Entry > Create Payment Voucher
| SALARY | DR | CR |
| 981-0000 SALARY | 1770.25 | |
| 310-0000 BANK | 1770.25 | |
| EPF | ||
| 981-0000 SALARY (EPF EMPLOYEE) | 220 | |
| 982-0000 EPF (EMPLOYER) | 260 | |
| 310-0000 BANK | 480 | |
| SOCSO | ||
| 981-0000 SALARY (SOCSO EMPLOYEE) | 9.72 | |
| 983-0000 SOCSO (EMPLOYER) | 34.15 | |
| 310-0000 BANK | 43.90 |
Method 2: Advance Solution
Advantage
- Accurate Salary Payment on Profit & Loss, as MARCH salary recorded as MARCH expense and payment made on APRIL
- More transactions / documents entry involved.
Disadvantage
- Maybe complicated and difficult to follow by some users.
G/L Account involved
| Account Code | Account Description |
| 981-0000 | SALARY |
| 982-0000 | EPF |
| 983-0000 | SOCSO |
| 310-0000 | BANK |
| 431-0000 | SALARY PAYABLE |
| 432-0000 | EPF PAYABLE |
| 433-0000 | SOCSO PAYABLE |
G/L > Journal Entry
| DR | CR | |
| 981-0000 SALARY | 2,000 | |
| 982-0000 EPF | 260 | |
| 983-0000 SOCSO | 34.15 | |
| 431-0000 SALARY PAYABLE | 1,770.25 | |
| 432-0000 EPF PAYABLE | 480 | |
| 433-0000 SOCSO PAYABLE | 43.90 | |
| 2,294.15 | 2,294.15 | |
G/L > Cash Book Entry > Create Payment Voucher
| 1) | DR | CR |
| 431-0000 SALARY PAYABLE | 1,770.25 | |
| 310-0000 BANK | 1,770.25 | |
| 2) | ||
| 432-0000 EPF PAYABLE | 480 | |
| 310-0000 BANK | 480 | |
| 3) | ||
| 433-0000 SOCSO PAYABLE | 43.90 | |
| 310-0000 BANK | 43.90 | |