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The Month-End Closing process creates the following journal entries:
GL Account | Debit | Credit |
|---|---|---|
End-Of-Service Provision | Current EoSB Amount | |
Expenses | Current EoSB Amount |
Table 2. Accrual of EoSB Amounts at month end
For details on calculation of current ESB amounts, refer to End-of-Service Benefit Calculations.
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Once the final pay is defined and the calculation details are verified, you need to post the Employment Termination document. FirstBIT ERP generates the following journal entries on posting:
GL Account | Debit | Credit |
|---|---|---|
End-Of-Service Provision | Min (Accumulated_ Amount, Final Pay) | |
Payroll | Min (Accumulated_Amount, Final Pay) |
Table 5. Cancellation of EoSB accruingaccumulation
If the accumulated amount is less than the final pay for the benefit, then the following GL entries are generated:
GL Account | Debit | Credit |
|---|---|---|
Other Expenses (or another expense account) | Final_Pay - Accumulated_Amount | |
Payroll | Final_Pay - Accumulated_Amount |
Table 6.Recording additional expenses
If the accumulated amount is greater than the final pay, then the following GL entries are generated:
GL Account | Debit | Credit |
|---|---|---|
Other Income (or another income account) | Accumulated_Amount - Final_Pay | |
End-Of-Service Provision | Accumulated_Amount - Final_Pay |
Table 7. Table 6. Recording additional income