Accounting and Payroll

1

I am not an expert in accounting but my partner is and according to him this setting should be Payable and not Liability !!!

“default_payroll_payable_account”, {“root_type”: “Liability”}

This is on the Company when selecting the payroll default account

2

isn’t a payable a Liability (something that reduces the value of a company) just like a receivable is an Asset (something that adds up to a company’s value)?

both affect the value of a company, just the actual flow of cash has not happened yet

1 Like
3

Thanks for the information … So i need to change my Chart accordingly.

4

It seems you need to understand the mechanics/dependencies/relation of an Account and it’s Root Account in the logic of ERPNext in order to do this appropriately. Do you use the default CoA that comes with ERPNext as a basis?

5

Actually I have created ours for the country Angola.
I have our accountant which did the setup and everyday we discuss… Changes, only after I quote your previous sentence he realised that he was spent and corrected.
Once again thales for the support and information.

6

alright, got it