Problem: How to record the transactions for advance payment of End of Service Benefits to an employee?
Solution: Follow the steps outlined below to properly enter the advance payment transaction.
1. Step 1: Verify End of Service Benefit Provision Balance
Before processing any advance payment, it is essential to verify that the accumulated End of Service Benefit (EoSB) provision is sufficient to cover the intended amount.
To check the balance:
Go to the HR and Payroll module.
Open the End of Service Provision Balance report.
Use the filter to select the relevant employee.
Double-click on the displayed balance amount.
Click on Recorder to view a detailed breakdown of the transactions and documents that contribute to the total provision.
Step 2: Enter the Payment Document (Type: Other)
To record the advance payment, go to the Money module and open Bank Payment.
In the Main tab, select "Other" as the payment type.
Step 3: Fill in the Payment Details
In the Payment Details tab:
Select the End of Service Benefits GL account to record the reduction in provision.
Enter the Employee's name to indicate the recipient of the advance payment.
Once all required details are entered, post the document. The system will generate the following accounting entry:
Dr End of Service Benefits
Cr Bank Accounts
However, this transaction alone does not fully close the record. The balance will still appear in End of Service reports.
To resolve this, the End of Service Calculation Register must be manually adjusted to fully complete the transaction.
Step 4: Record Register Correction
Go to Administration > Administration Documents > Register Correction.
Open the relevant document, and in the Register Content Settings, select End of Service Calculations Register.
In the End of Service Calculations tab:
Set the Register Record Type to Expense
Enter the Entity, Employee, and the corresponding GL account for the correction
Specify the Amount being advanced
Make sure the Period matches the one used in the Bank Payment document
After filling in all the details, save the document.
Then check the End of Service Provision Balance report again. The provision balance should show a reduction matching the advance payment made.
If the Termination document is created, it will show the remaining End of Service Benefit balance after deducting any advance payments that have been made.
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