ERPNext Conference 2019* ERPNext.com Blog

[v11] Payroll Entry - Party Type & Party required for Payable account - Salaries Payable

payroll

#1

I am trying to get through a payment of salary in v11.

I have set up as per these instructions

  • a Salary Structure
  • a Salary Structure Assignment connecting this to my test employee
  • a Payroll Entry of which I have created a Salary Slip

what I find not logical thus far is that submitting the Payroll entry apparently does not create a Liability (in the same logic as a Purchase Invoice for example.

As I believe the next (and possibly final step) would be to click the Make Bank Entry Button from inside the Payroll Entry. But the system does not allow that to go through with the error message

Party Type and Party is required for Payable account - Salaries Payable


Strange Detail is the the complaint is for Row 2 while there is only one row in the Payroll Entry. Anyway the main point is the there is no option to set a party type or even Party in the Account Payable Account Salaries Payable, neither in the Employee’s entry.

So, Can anyone advise what the problem here is?


Reflecting new Party Type in Account Payable/Account Receivable Report
#2

Hi. I have the same question.


#3

the problem as per this Topic has shifted slightly. Now (after yesterday’s and today’s updates for v11) the mentioned Button in the Payroll Entry Make Bank Entry does not appear any longer. However when You want to create Journal entries for this from the Dashboard the same error (“Party Type and Party required for Payable Account - Salaries Payable”) still appears.

Still it is not possible to choose an Employee in the “Party” section of the Journal Entry. A supplier could be chosen. Any switch to choose “Party Type” is nowhere in sight.

What generally bugs me is that I feel this is not logical and there seems something missing.

there needs to be a two-step process (exactly the same as in relation to t a supplier)

  1. a liability is created (Purchase invoice for Suppliers, Salary Slip for employees). This shoudl involve a Liability account just like “Salaries Payable”
  2. an actual transfer of money from a bank account to an expense account takes place which balances the previous Liability.

#4

seems a releated/same issue has been discussed earlier.

also there exists an Issue on github since 2017 https://github.com/frappe/erpnext/issues/8421


#5

Faced this problem. This is because Salary Payable account is defined as Account Type Payable. The workaround for now is NOT to set the Account Type. The downside is that the Payment Entry cannot be used and the bank reconciliation would not be complete.

Still testing to figure out the way.


#6

Hi, got any solution for this issue? I am facing the same problem, how do I add Employee in the Party Type. When Account Type is selected as Payable, I am able to get Employee in the Party Type but if a loan is given to Employee the Account Type should be in Receivables.

can someone help…


#8

have you made any progress with this?


#9

Any workaround found for this yet?


#10

this illustrates what I am doing for the time being (not using HR module whatsoever, just journal entries)


#11

@vrms thanks for the illustration and this is workable for our business right now. But this only applies if you are a micro business with few employees lets say five. What if you have a business with 50 to 200 Employees.

I hope the team can find a way to solve this soon.


#12

@rohit_w
@umair
Any update on this? we are having the same problem and this must be resolved…

Regards,
Yahya


#13

Hi,

This feature is working fine. Kindly find the below steps:

Regards,
Reema


#14

Hi @Reema_Mehta ,

I have the same issue. Unlike your situation, when I click on the “Submit Salary Slip” button as shown below, I will get an error message. Hence, I couldn’t proceed to the auto journal entry.


#15

Check each salary component if there is a payable/receivable Account being linked to. If there is, you need to clear the Account Type “receivable” or “payable” in the Chart of Accounts.

That creates an accrual journal entry but the party (i.e. employee name) is not added, which I think is really important in tracking payables or receivables from employees.


#16

Hi,

So in your chart of accounts, there are default account heads that you have created. Go to the Phone Allowance account and remove the account type payable / receivable from there, leaving it blank. Screenshot attached below:

Once this is done, you can try and run the payroll.

Regards,
Reema


#17

And what about the two steps process that @vrms was talking about?
It seams logic to me that any payment should first create a liability and then a real money transaction. But I can only create bank transactions using payroll.
Anyone knows how to do the process correctly in the erpnext? (Do it manually for each employee doesn’t qualify as correct)


#18

I stepped back from Payroll/Salary Slip for now and use manual Journal Entries for both as per this how-to for the time being. Mainly because in my usecase the salary is paid in a non-default currency (which is not possible with Salary Slips and any of the other HR tools)


#19

You can go through the entire payroll process in the below link:
https://frappe.erpnext.com/kb/hr/payroll-process

Regards,
Reema


#20

tried all the workarounds here but still experiencing issue. Keeps on complaining about my AR account which is not even linked to the payroll.

PS. i upgraded to version 12 and still experiencing this.

Any help would be grateful


#21

My understanding here is that the Payroll Entry is really designed to work with an external payroll system. Many companies, for example, transfer all payroll expenses as one lump sum to a separate bank account, and then partition it out from there. The aim is to separate HR and accounting for privacy/secrecy reasons.

Unfortunately, not all companies do it this way, and the Payroll Entry doctype isn’t very flexible. It should be possible to refactor Payroll Entry to create individual liabilities if the account type is marked payable, but it’d be a complex job (at least for my limited understanding of Frappe).