In Zeev, every employee is created as a Partner. This structure allows all employee-related transactions—such as salary, advances, and store purchases—to be tracked easily in one account.
Best Practice
When creating an employee as a partner, it’s recommended to include the employee code in the name.
For example:
EMP001 - John Doe
This makes it easier to identify employees and maintain consistency in reports.
Recording Transactions
Employee Advances
Any advance paid to the employee should be recorded as a Partner Payout.
This increases the amount due from the employee.
Reimbursements or Payments Received
Any payment or settlement received from the employee should be recorded as a Partner Pay-in.
This reduces the amount due from the employee.
Employee Purchases from the Store
If an employee purchases goods from the store, record it against the same partner account.
This ensures that all employee-related transactions are reflected in one place.
As a result, the Partner Account (employee account) will always show the current balance—how much the company owes the employee or vice versa.
Recording the Salary
At the end of each month, record the salary through a Journal Voucher (JV).
Sample Journal Entry:
Particulars | Debit | Credit |
Salary Expense | ₹XXX |
|
EMP001 - John Doe |
| ₹XXX |
EMP002 - Jane Smith |
| ₹XXX |
Note:
The Debit entry should go to the Salary Expense Account.
The Credit entries should go to the respective Employee (Partner) Accounts.
Effect of the Salary JV
The salary JV records the total salary expense for the company.
The credited amount in each employee account reflects as due from the company, balancing against any advances or purchases previously recorded.
This approach ensures each employee’s financial position with the company is transparent and always up-to-date.