Use Employee wise Accounting dimension in Journal Entry for payroll

[viralkansodiya]

Use Case:

1. Company is processing a payroll entry for 100 employees
2. For Each employee, department , plant wise company is managing separate accounting dimension
3. Employee Viral Kansodiya.
       Cost Center : ViralKansodiya-FS
        Company Plant : Unit A206
4. Employee Ankita Patel
       Cost Center : AnkitaPatel-FS
       Company Plant : Unit A207

Current Payroll Journal Entry

Expecting Behaviour

In each row accounting dimension should fetch from employee if it is updated else from payroll entry

-: To achieve expected journal entry user have to do a multiple payroll entry, because we are not fetching from employee master

-: Accounting Entry should be employee wise and accounting dimension also should be employee wise

[viralkansodiya]

Screen Recording of Solution which we have made

[iamkhanraheel]

Hello @viralkansodiya,
Can you describe why this employee-wise posting for salary expense is needed?

Employee-wise debit entries for salary expense are not required and are generally avoided. Salary expense represents where the cost is incurred (in you case: cost center, plant, etc.), whereas employee-wise tracking is relevant on the liability side (salary payable), since that answers who the company owes money to.

You can customise and aggregate the expense as per the accounting dimensions you mentioned in Employee master instead of posting party type and party.
Salary expense answers Where did the cost go?
That “where” can be:

• Cost Center
• Plant / Business Unit
• Project

Doing this dimension-wise instead of employee-wise will maybe preserve the accounting correctness also while salary payable will be posted employee-wise(current flow).

Although both of these customisation will lead to a large dataset in accounting entries which will make trial balance analysis painful and audit will be confusing.

[asieftejani]

Also sometimes junior accounts department staff are not supposed to know salaries of all staff (expecially seniors) - so consolidating entries is important
Not sure if thats what is currently happening

[viralkansodiya]

@iamkhanraheel @asieftejani

By maintaining accounting dimensions (Cost Center, Project, Business Unit, etc.) in the Employee master, the system can automatically pick them up during Payroll Entry posting. This removes the need to create multiple payroll entries per dimension or cost center, which is both error-prone and operationally heavy.

The key benefit is clear and consolidated cost reporting:

Project expenses can reflect the complete cost picture

This includes salary costs of employees working on the project, along with other related expenses like purchase invoices

Finance teams get a single, accurate view of total project expense without manual allocation

Importantly:

Salary expense is still aggregated by accounting dimensions

Employee-wise tracking remains limited to the liability side (Salary Payable)

The GL remains clean and aligned with standard accounting practices

Overall, this change simplifies payroll posting while improving accuracy and visibility of costs across projects and cost centers.

[viralkansodiya]

One of our client they have different Business units and profit is booked under that business unit and the salary should also be tracked under that business unit so we will get correct P&L currently they are running multiple payroll business unit wise to achieve this as many number of bunds unit those many payrolls that efforts intensive.

[viralkansodiya]

@iamkhanraheel @asieftejani

any feedback ?