Introduction/Purpose:

The purpose of an employee 13th-month accrual ledger is used to track and calculate the accrual and disbursement of the 13th-month pay for employees. 

Dependency to record 13th Month Accrual Ledger:

The following are the dependencies to record the Employee 13th month accrual ledger: 

• Identify the ledger accounts: Determine the appropriate accounts to record the 13th-month accrual. Commonly used accounts include:
  
  • 13th Month Accrual Payable: This account represents the liability for the accrued 13th-month pay for all employees.

• Employee Expense Account: This account represents the expenses associated with the 13th month’s pay.

• Determine the accrual amount: Calculate the accrued 13th month’s pay for each employee based on your organization’s policy. This amount is usually a percentage of the employee’s annual salary or a fixed amount specified in their employment contract.

• Record the accrual entry:
  
  • Debit the 13th Month Accrual Payable account for the total accrued amount. This increases the liability on the balance sheet.
  • Credit the Employee Expense Account for the same amount. This recognises the expense in the income statement.
    

How To Navigate:

The navigation to record an Employee 13th Month accrual ledger in the HRMS system typically involves the following steps:

• Click on the main navigation icon which is located on the top right corner of the screen then click on the Payroll section which is located on the left side menus on the screen.

• Click on the Employee 13 month Accrual Ledger section which is located in the Transactions under Payroll. After clicking on this link you can navigate Employee 13th month Accrual Ledger record Listing.

Listing:

The Employee 13th month Accrual Ledger allows users to view the ledger record based on the filtration of employee name/code/reference number, financial year and pay period.

The key features of the employee 13th month accrual ledger are: 

• Export: Selected Records, Current Page records or All records can be exported by users with listed Columns or All Columns to a spreadsheet or other file format for further analysis or reporting.

• Skip: The skip option allows the user to skip the wrong record or the record they want to skip and process another record. The user can individually skip the records of an employee or select multiple records. The Skip records are not calculated in salary payments.

• Recalculate: The user can also calculate the accrual ledger for each individual employee.

Recording & Update:

• Employee Name/Code / Reference Number: The user needs to enter the employee name with the employee code provided to the employee and the reference number.

• Financial Year: The user needs to choose the financial year from the predefined dropdown such as FY-2022, FY-2023, FY-2024

• Pay Period: It includes the time period for which the salary is being paid, typically a month or a bi-weekly period. Users have to select the pay period from the given dropdown

Key Note for the Employee 13th month Accrual ledger

• The user can skip the following 13-month accrual period if he misses recording to calculate the month or enters the wrong amount. He can then skip the 13-month accrual and give it to the employee as a voucher, such as a leave allowance.

• The 13th-month Accrual ledger is only applicable when the employee completes the financial year in the company. The 13th-month accrual ledger voucher is added at the end of the month when the user completes the financial year. For example, if the financial year is from January to December, then the employee gets the 13th-month accrual ledger in December.