ERPNext.com Frappe Cloud Support Partners Foundation Frappe School

Salary Component Account Root Types

I noticed this commit: https://github.com/frappe/erpnext/pull/26604
However, this goes against how the Demo is setup. If you look at Retail demo the salary component “Basic” is linked to “Salary” account and this account’s root type is an expense. I’m pretty sure this commit is supposed to be opposite. I’m not an accountant so I’m not 100% sure.

For salary component “Earning” type, expenses accounts are also needed as they are earned by employee. But to employer, they are expenses. Do not understand the reasons to restrict “earning” salary component to “Liability” type.

It has been reverted.