Salary computation and payment with OpenERP 6.1

I am going to show you in 3 steps how you can compute the salary and its accounting entries efficiently with OpenERP.

Installation

Before we begin for 3 steps lets install required module, you need to install hr_payroll, hr_payroll_account and account_voucher module in order to test the payslip and payslip accounting entries which will be paid by voucher later just like an supplier payment.

Modules are installed with me.

Step 1: Configure salary structure

Prepare a salary slip and of course you need to prepare and configure few rules in order to prepare the slip for employee. Here i am working with demo date to understand quickly how payroll is working with accounting system.

Salary slip for Quentin De Paoli

Step 2: Prepare a salary slip

Lets see the accounting entries when you confirm the payslip, it will do CTC debited in different expense heads accounting salary rule configuration, and credit of salary payable and tax payable which is deducted from your salary based on the configurations. This is the important configuration you have to once and everything works fine based on this account configuration

Hint:
Remove accounts from Gross and Net salary rules. of course there is a bug and needs to be fix in OpenERP while generating the accounting entries. here i have fixed that bug by changing the entries manually before posting in to accounting system

Accounting entries for Payslip.

Step 3: Pay salary through bank

Last step is finally pay the salary payable, this is more of less the same process then payment to the suppliers, so lets do a payment with the supplier payment option just select the supplier like it with your employee.

Payment of salary through Bank, finally we did payment of the salary which is payable to employee in 3 clicks, you can also generate the reports from accounting system like tax deducted from employee’s accounting but payable to government or agencies.

Payment of salary through Bank.

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