Problem: How to record Provisions and their payment?
Solution: In order to record Provisions and their payment, please follow the steps below:
When hiring an employee, fill out the 4th tab of the document i.e. provision.
This tab is used to store information about the details of the benefits granted within this employment contract.
To create a new provision, go to HR and Payroll module > Master data > Employee Benefit provisions
In the dialog box, add the description and the calculation method, if it will remain fixed or will be % from Basic accruals.
- Fixed Amount: As a fixed amount each month.
- Percent from Base Accruals: As percentage of the base accruals. Here, you must list all the accrual types that can be possibly used for this benefit calculation for all employees. For a particular employee, the particular percent and particular base accrual types are specified in the employee's contract; however, only the accruals listed both in the benefit type and employee contract will be used for calculation.
Note. If the benefit is calculated as percentage of some base accruals, the system will use the accrual amounts of the previous month for payroll calculation.
The GL will be automatically picked from the default GL accounts. It is available from Accounting > Default GL accounts.
If another GL is to be selected, you can go to Edit Gl Accounts option while creating the provision and choose the required GL from the list.
Once it is created, add the provision under provision tab, as selected, details will be filled automatically.
Add the details of the provisions in the Contract so it will be accruals every month with the salary.
To record the contract kindly check the video How to create Employment contract.
https://www.youtube.com/watch?v=IrmF_Ptaf9s&list=PLPEJAgZf2UadMM0LJ-_dQaH-jQM616P6O&index=6&pp=iAQB
Once the contract is filled, these details will appear in the Payroll calculations every month
If you create Payroll calculations and click on fill, the details of provision tab will be filled automatically with other details
Payroll sheet will also show the balance in provision tab.
See also: 10.3.1. Payroll Calculations (There you will learn how to calculate the salary that the company will pay to employees
of a particular department or all departments on payday for their work during the pay period).
Check your actions by generating a report.
This report provides detailed information on accrued amounts of employee benefits.
If you want to pay the reserves: In the Payroll document, fill in the 3 tab on the button or create a Payroll document using generate option of Payroll calculations.
See also 10.3.2. Payroll Sheets (There you will get acquainted with the documents that list employees with their net salary for their
work during a certain period of payment (registration) or with the payment of sick leave, vacations, benefits or final payment after dismissal.)
Create a document Bank payment (can be through Cash and cheques as well) for the payment of wages and reserves (based on payroll sheet) using generate option in the payroll sheet. The details should be completely filled, you can review the amount and post the document.
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You can get more detailed information in the report Statement of Employee Benefit Provisions.
This report provides summary information on accrued amounts of employee benefits.
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