Accounting entry for monthly salary statement using Odoo

- Odoo

Any Company will be paying monthly Salaries to their employees. There will be various components in Odoo accounting entry for monthly salary statement such as Basic, HRA, DA,Mediclaim, Other Components etc.

Employer Contribution to EPF (10%) of Gross – subject to Max of Gross at 18,0001700

Telephone 1000
Mediclaim 2000
Gross 17000
Employer Contribution to ESI (3.25%) of Gross – subject to Max of Gross at 21,000 553
Cost to Company 19253
Employee Contribution to EPF (10%) of Gross – subject to Max of Gross at 18,000 1700
Employee Contribution to ESI (0.75%) of Gross – subject to Max of Gross at 21,000 128
Take Home 17425

**Note: TDS will be applicable as per Income Tax slab for Employees

  1. Professional Tax deductions will vary from State to State
  2. The consolidation of each Employees CTC is the Total Employee Cost to the Company
  3. So When any Payroll Entry gets generated by a Company, there will be 2 Components

a. Expenses for the Company

b. Payable/Advance for the Company

      4. The Components of Expenses for the Company will be as follows

a. Gross

b. Employer Contribution to ESI

c. Employer Contribution to EPF

**Note: These are Expenses to the Company, hence these Expenses need not be posted Employee Wise
5. The Components of Payable/Advances for the Company

a. Salary Payable

b. Employer & Employee Contribution to the Company – EPF

c. Employer & Employee Contribution to the Company – ESI

d. Professional Tax Payable

e. TDS on Salary Payable

f. Salary Advances

g. Travel Advances

h. Bonus Advances

i. Leave Encashment Advances

j. Salary Withheld

** Note: All Advances (Salary, Travel,Bonus,Leave encashment) will need to be posted for each employee as for the accounting purpose each employee details has to be captured.

**Note: Salary Payable, Employer & Employee Contribution (PF & ESI), TDS Payable, Professional Tax Payable can be posted as a single entry

**Note: Employees who have resigned cannot be paid salary along with active employees. Hence salary payable to these employees will have to be posted individually.

a. This is because they would have taken advances. These would have to be deducted

b. They might have worked for many years. Hence they might have benefits like Gratuity, Leave encashment, LTA which will have to be paid as part of Full & Final Settlement (sample entry)