A1.165 : How to record salary

How to record Salary?

Method A: Gross Salary – deductions of EPF/SOCSO

1. Create a Journal Entry (to record amount contributed by employer)
1.  Debit EPF Account (expense), credit EPF Accrual Account (liability)
2.  Debit SOCSO Account (expense), credit SOCSO Accrual Account (liability)
2.  Create a Cash Payment Voucher (to record salary paid to employee after deducted EPF & SOCSO)
1. - select payment method, define cheque no (if any), leave the amount blank.(it will be auto updated)
2. - for account no, select a salary account (key in full salary amount),
1.  select EPF Accrual account (key in EPF amount deducted from salary in negative form)
2.  select SOCSO Accrual account (key in SOCSO amount deducted from salary in negative form)
3. Create a Cash Payment Voucher (to record payment made to EPF and SOCSO) same as Method A
   

Method B: Net Salary

1. Create a Journal Entry (to record amount contributed by employer)
1. Debit EPF Account (expense), credit EPF Accrual Account (liability)
2. Debit SOCSO Account (expense), credit SOCSO Accrual Account (liability)
2. Create a Journal Entry (to record amount deducted from gross salary, employee)
1. Debit Salary Account (expense), credit EPF Accrual Account (liability)
2. Debit Salary Account (expense), credit SOCSO Accrual Account (liability)
3. Create a Cash Payment Voucher (to record net salary paid to employee)
1. Select payment method, define cheque no (if any), leave the amount blank.(amount auto updated)
2. For account no, select a salary account (key in net salary amount),
4. Create a Cash Payment Voucher (to record payment made to EPF and SOCSO)
1. Select payment method, define cheque no (if any), leave the amount blank.(amount auto updated)
2. For account no, select EPF Accrual Account… key in the total EPF amount paid to EPF ( create another Cash Payment Voucher, do the same for SOCSO Accrual)
   

Method C: Use Journal

1. Create a Journal Entry (to record amount contributed by employer)
1. Debit EPF Account (expense), credit EPF Accrual Account (liability)
2. Debit SOCSO Account (expense), credit SOCSO Accrual Account (liability)
2. Create a Journal Entry (to record amount deducted from gross salary
1. Debit Salary Account (expense), credit EPF Accrual Account (liability)
2. Debit Salary Account (expense), credit SOCSO Accrual Account (liability)
3. Create a Journal Entry (to record net salary paid to employee)
1. Debit salary account (key in net salary amount), credit Cash/Bank account
4. Create a Cash Payment Voucher (to record payment made to EPF and SOCSO) same as Method A
   

Example 

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