Provident Fund PF Payable in Salary Component - jigneshpshah/greycube_helpmanual GitHub Wiki

1. Salary Component - PF (Deduction) , Make Default Account > "PF Payable"

( For "PF Payable" account, remember to NOT choose Account Type = Payable , just set the parent account as Accounts Payable)

2. When Salary is submitted from the Payroll Entry below JV is created

Salary (Expense Account) -  Dr
PF Payable  - Cr
Professional Tax - Cr
Payroll Payable  - Cr

3. When the salary is paid to the employee

Payroll Payable Dr
Bank Cr

4. When the actual payment to the govt. is done at that time do the bank entry as follows

Professional Tax  - Dr
Bank - Cr

PF Payable - Dr
Bank - Cr