Recovery from employee against special GL transactions

[Former Member]

Hi,

Our client give Medical or LTC or Travel allowance to employees. In finance we have created employee as a vendor also. So when we give advance to them transaction is posted in employee vendor account with respective special GL indicator. When the recovery is made from their salary (on monthly basis) entire deduction is posted in employee vendor account. Does anyone have an idea how to break the recovered amount and assign the same as per the advance given?

For example: We have given Medical advance of 5,000 to employee XX01. This was posted in employee vendor account with Special GL indicator M. Same needs to be recovered from salary in 5 equal installments (1,000 per month). Employee XX01 has also taken Travel advance of 10,000 that was posted in employee vendor account with Special GL indicator T. Again same needs to be recovered in 5 equal installments (2,000 per month). When the recovery is made from Salary consolidated amount 3,000 (1,000 + 2,000) would get posted in employee vendor account. Now the issue is how do I assign 1,000 against Medical advance & 2,000 against Travel advance?

I can pass a JV to break the recovery of 3,000 to 1,000 & 2,000 but my original advance given and transaction of 1,000 & 2,000 would stand separately in the employee vendor account and these transactions would also not be linked to each other.

Is there a better way to do this?

Thanks,

Sanjay

[Former Member · Accepted solution]

Hi

If I assume the loan type is different in HR between these two advances.  If so, you populate the loan type in the assignment field so that the entry of 1000 and 2000 are seperateed by two different line items.

Then you develop a program to transfer the vendor open items from vendor account to respective vendor spl GL account based on the loan type in the assignmnt field.

Hope this helps.

Regards

[Former Member · Accepted solution]

Hi Prakash,

I believe the solution you suggested would solve the problem. However, can you please advice how can we bring the loan type in assignment field? Does HR team needs to make necessary settings? If yes, can you please guide.

Thanks,

Sanjay

[Former Member]

Hi,

When you are giving advance, entry will be -

1.Vendor ac(Sp gl).........................Dr.5000

To Bank clearing ac....................Cr.5000

2. Then you are deducting from salary

Salary ac...............................Dr.10000

To Vendor ac(Sp gl)................Cr.1000

To Vendor ac..........................Cr.9000

After this step you clear your advance through F-44. after clearing advance will be with the vendor as 4000.

Regards,

Sampad

[Former Member]

Hi Sampad,

First entry (giving advance) is correct however second entry is not that way. Vendor (Special GL) is not getting credited. Only Vendor account is getting credited with total 10,000 (as per your example).

Regards

[Former Member]

No issue,

Still you can clear vendor acc with normal transaction and sp gl transaction through F-44. that time you will have vendor(Sp Gl)+ and another ac with vendor(normal)-. just clear this two in F-44.

Sampad