Hi all,
I am working with a manufacturing company and recently joined in October 2012. We overpaid one employee in July 2012, but the employee has since returned the excess amount. Now, my accounts executive is asking how to record this transaction in the accounts.
Kindly advise me on the same.
From India, Hyderabad
Acknowledge(0)
Amend(0)
170I am working with a manufacturing company and recently joined in October 2012. We overpaid one employee in July 2012, but the employee has since returned the excess amount. Now, my accounts executive is asking how to record this transaction in the accounts.
Kindly advise me on the same.
From India, Hyderabad
Acknowledge(0)Amend(0)
Hi Ashok,
Similar things do happen commonly in all companies. In such cases, it is not advisable to take back the excess salary in any form. The ideal way is to get authorization from the employee to deduct the excessive salary in the immediate next salary. Then, during the next salary disbursement, only the deducted salary should be disbursed. I believe this will solve your purpose.
Regards,
Kishore
From India, Hyderabad
Acknowledge(0)Amend(0)
Similar things do happen commonly in all companies. In such cases, it is not advisable to take back the excess salary in any form. The ideal way is to get authorization from the employee to deduct the excessive salary in the immediate next salary. Then, during the next salary disbursement, only the deducted salary should be disbursed. I believe this will solve your purpose.
Regards,
Kishore
From India, Hyderabad
Acknowledge(0)Amend(0)Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.