How to Add Employee Bonuses and Disburse Them Through Payment Vouchers

Explanation of the bonuses feature and how to add them to employees as incentives or monthly bonuses.

Practical Steps:

1. Accessing the Bonuses Feature:

   • From the dropdown menu, select Payroll.

   • Click on (+) next to Bonuses.
     Or select New Bonus from the top of the page.

2. Adding a New Bonus:

   • Fill in the following fields:

     • Reference Number

     • Employee Name

     • Amount (Bonus Amount)

     • Date (Bonus Disbursement Date)

     • Type (Commission, Grant, or Other)

   • Click Save.

3. Accounting Impact:

   • Once you add a bonus, an accounting entry appears showing the company’s liability to the employee for the bonus amount. The entry is from the employee liabilities account (creditors account) to the bonus expense account, which are defined in payroll settings. You can view the accounts associated with the payroll feature by going to Settings > Payroll Settings > Edit under Payroll Components, and you will see the accounts associated with payroll (creditors account for employee liabilities, expense account for direct cost salaries, expense account for general salaries, expense account for bonuses, revenue account for discounts).

   • You can review the entry from Reports > Journal Entry.

4. Disbursing the Bonus:

   • To start disbursing the bonus, click on Employee Disbursement Voucher, next to the bonus you added.

   • Select the account to pay from.

   • Enter the Amount Paid and the Date.

   • In case of full payment:

     • The system will show that the amount has been fully disbursed.

   • In case of partial payment:

     • The remaining balance will appear in Payroll Receipts and Employee Statement.

   • After the bonus is paid, an automatic accounting entry will be created as follows: from the employee liabilities account (defined in payroll settings) to the account it was paid from. You can view the accounting entry by going to Reports > Journal Entry Report.

Follow-up:

• You can track bonus details, disbursements, edit them, or delete them through the display screen dedicated to each bonus.

• If the bonus has been paid, you cannot edit it, only view it.