Received Salary Transaction Entry in Wave Accounting Aplication
Siddharth_Jain
Member Posts: 4
Hello,
I am not very well versed in accounting, However I was able to manage my accounting needs through opensource software. Recently I came to kno about wave and I liked its interface. I am currently shifting my account from my old software to wave.
I have received salary amount INR 50,000 from my employer whoes breakup is like:
Base Salary: INR 80,000
Tax Deducted: INR 20,000
Withholded for ESOP: 10,000
Total amount credited in bank account: INR 50,000
How should I add this entry in wave accounting application?
In my old software there was an easy way to achieve this by adding both income and expense entries, like
Cash & BANK: Bank: INR 50,000
Asset: Withholded for ESOP: INR 20,000
Expenses: Tax: INR 10,000
Income: Salary: INR 80,000
Thanks & Regards,
Siddharth
Comments
I looked at some of the wave accounting video and found that a way to do above transaction is to add a new journal entry.
Let me know if there are any other way to do this.
Thanks,
Siddharth
Hey there @Siddharth_Jain
The best way to achieve this would be to create a journal transaction, or you can use the split deposit feature however you will not be able to split it amongst an income and a deposit account. Curious why you're importing your income as gross pay and not importing just the net pay, then adding your tax payments separately as they would occur in real live?
Hello @BarsinA Thanks for tour suggestion. I have added journal entries for this. Regarding why I am not importing it as net pay and adding my tax payment separately, given above transaction details, I just could not found a way to to have balanced double entry. With your comments it looks like I am doing something un-obvious.
I would appreciate if you can help me with adding entries to wave accounting with above transaction details using net pay.
Hey @Siddharth_Jain! This is a really fantastic inquiry. Unfortunately, on the Support team here, we're not accountants, and we wouldn't want to give you and erroneous accounting advice that might not best suit your needs. You'll want to reach out to an accountant in order to determine what the best method moving forwards here is.
Hello @ConnorM yes I perfectly agree with you. I was just curious because @BarsinA had some different point of view. For my accountant things like this does not matter as long as everything is balanced. I got one way to accomplish my task and that's enough. Thanks for helping me with this.