{"id":3170,"date":"2020-10-21T12:40:26","date_gmt":"2020-10-21T07:10:26","guid":{"rendered":"https:\/\/blog.tenthplanet.in\/?p=3170"},"modified":"2026-03-03T10:13:00","modified_gmt":"2026-03-03T10:13:00","slug":"accounting-entry-for-monthly-salary-statement","status":"publish","type":"post","link":"https:\/\/tenthplanet.in\/blogs\/accounting-entry-for-monthly-salary-statement\/","title":{"rendered":"Accounting entry for monthly payroll using Odoo"},"content":{"rendered":"

Any Company will be paying monthly Salaries to their employees. There will be various components in Odoo accounting<\/a> entry for monthly payroll<\/a> such as Basic, HRA, DA, Mediclaim, Other Components etc.<\/p>\n

Employer Contribution to EPF (10%) of Gross \u2013 subject to Max of Gross at 18,0001700<\/p>\n\n\n\n\n\n\n\n\n\n\n
Telephone<\/td>\n1000<\/td>\n<\/tr>\n
Mediclaim<\/td>\n2000<\/td>\n<\/tr>\n
Gross<\/strong><\/td>\n17000<\/strong><\/td>\n<\/tr>\n
Employer Contribution to ESI (3.25%) of Gross \u2013 subject to Max of Gross at 21,000<\/td>\n553<\/td>\n<\/tr>\n
Cost to Company<\/strong><\/td>\n19253<\/strong><\/td>\n<\/tr>\n
Employee Contribution to EPF (10%) of Gross \u2013 subject to Max of Gross at 18,000<\/td>\n1700<\/td>\n<\/tr>\n
Employee Contribution to ESI (0.75%) of Gross \u2013 subject to Max of Gross at 21,000<\/td>\n128<\/td>\n<\/tr>\n
Take Home<\/strong><\/td>\n17425<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

**Note: TDS will be applicable as per Income Tax slab for Employees<\/p>\n

    \n
  1. Professional Tax deductions will vary from State to State<\/li>\n
  2. The consolidation of each Employee’s CTC is the Total Employee Cost to the Company<\/li>\n
  3. So When any Payroll Entry gets generated by a Company, there will be 2 Components<\/li>\n<\/ol>\n

    a. Expenses for the Company<\/p>\n

    b. Payable\/Advance for the Company<\/p>\n

    \u00a0\u00a0\u00a0\u00a0\u00a0 4. The Components of Expenses for the Company will be as follows<\/p>\n

    a. Gross<\/p>\n

    b. Employer Contribution to ESI<\/p>\n

    c. Employer Contribution to EPF<\/p>\n

    **Note: These are Expenses to the Company, hence these Expenses need not be posted Employee Wise
    \n5. The Components of Payable\/Advances for the Company<\/p>\n

    a. Salary Payable<\/p>\n

    b. Employer & Employee Contribution to the Company \u2013 EPF<\/p>\n

    c. Employer & Employee Contribution to the Company \u2013 ESI<\/p>\n

    d. Professional Tax Payable<\/p>\n

    e. TDS on Salary Payable<\/p>\n

    f. Salary Advances<\/p>\n

    g. Travel Advances<\/p>\n

    h. Bonus Advances<\/p>\n

    i. Leave Encashment Advances<\/p>\n

    j. Salary Withheld<\/p>\n

    ** Note:<\/strong> 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.<\/p>\n

    **Note<\/strong>: Salary Payable, Employer & Employee Contribution (PF & ESI), TDS Payable, Professional Tax Payable can be posted as a single entry<\/p>\n

    **Note<\/strong>: Employees<\/a> who have resigned cannot be paid salary along with active employees. Hence, salary payable to these employees will have to be posted individually.<\/p>\n

    a. This is because they would have taken advances. These would have to be deducted<\/p>\n

    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)<\/p>\n","protected":false},"excerpt":{"rendered":"

    Any Company will be paying monthly Salaries to their employees. There will be various components to the Salary including Basic, HRA, DA,Mediclaim, Other Components etc<\/p>\n","protected":false},"author":23,"featured_media":3183,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4],"tags":[158,23,48],"class_list":["post-3170","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-odoo","tag-monthly-salary-statement","tag-odoo","tag-odoo-accounting"],"acf":[],"_links":{"self":[{"href":"https:\/\/tenthplanet.in\/blogs\/wp-json\/wp\/v2\/posts\/3170","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tenthplanet.in\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tenthplanet.in\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tenthplanet.in\/blogs\/wp-json\/wp\/v2\/users\/23"}],"replies":[{"embeddable":true,"href":"https:\/\/tenthplanet.in\/blogs\/wp-json\/wp\/v2\/comments?post=3170"}],"version-history":[{"count":0,"href":"https:\/\/tenthplanet.in\/blogs\/wp-json\/wp\/v2\/posts\/3170\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tenthplanet.in\/blogs\/wp-json\/wp\/v2\/media\/3183"}],"wp:attachment":[{"href":"https:\/\/tenthplanet.in\/blogs\/wp-json\/wp\/v2\/media?parent=3170"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tenthplanet.in\/blogs\/wp-json\/wp\/v2\/categories?post=3170"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tenthplanet.in\/blogs\/wp-json\/wp\/v2\/tags?post=3170"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}