How to set up wages in the Full Budget Planner

Nori -

With Full Budget in our Budget Planner(*), you may set up your cash flows, related to wages in detail.

Wages payment consists of multiple accounts, thus it is treated differently from other payments in CaFE.

Here, we will see how to set it up step by step.

 

Quick Overview

The wages cash flows are listed in the "Cash Flow" tab with the name "Overall Net Wages".

Let's see how is the setting. Click the edit option beside the "Overall Net Wages", then click the "Change business rule".

 

Then following setting screen pops up.

 

The accounts, which are listed in the above pane, are automatically filled, but the values in the below pane may not be filled. When the % on the below pane is properly set up, then wages-related cash flows will be created properly.

 

Here is a simple sample of wages items. We are going to set up a budget for wages by using this example.

mceclip4.png

 

Let's start!

 

The steps are as follows:

  1. Set up accounts
  2. Set up deductions
  3. Modify the gross wage amount
  4. Recalculation

 

Set up accounts

It is automatically selected by CaFE, but if you cannot find the necessary account, you may add it manually.

The above list in the setting screen shows the wages-related accounts, which are automatically selected. The preselected accounts depend on your accounting system and the naming of the accounts.

In our sample below, three yellow-marked accounts are not shown above.

mceclip7.png

  • "Pension Payable" can be set to "Other Deduction in B/S", as this account is a Balance Sheet account.
  • Pension Cost. which is the employer's contribution, can be set to "Director's NI Contribution".
  • Medical Insurance, which is an account in the Profit and Loss, is set to "Other Deduction in P/L".

To add an account, simply click the blank space in the corresponding account category, listing up the accounts. You can simply find the target account, or type starting character (say "P" in this case), then related accounts are selected. If you find it, click the account, then it is added. (You may also remove an unnecessary account by clicking the X mark)

 

As a result, the account settings look like this.

Now click the "Save" button in the settings pane.

* Note that there is another "Save" button for value settings in the below pane. In this step, please click only the one in the settings pane.

 

Now move to the next step!

 

Set up deductions

The ratio of each deduction to the gross salary is now calculated. If you have the ratio already, you may set it. But if not, please calculate it based on the amounts first, as in the sample below (yellow marked cells).

mceclip12.png

 

Now the results are updated in the value settings pane.

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If the "Use Budget Amount" switch is on, then set it off for this example. (If it is on, the amount is fetched from Profit and Loss instead of calculating from gross wages).

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Then click the "Save" button in the pane.

 

Now we are almost done. Let's move to the next step!

 

Modify the amount of the gross wages

Select the Profit and Loss tab, and find an account for gross salary. In the sample, it is "Salaries".

Then click the edit option and click "Change budget item category".

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Here, enter a budget amount for the gross salaries and simulate it. In this sample, 5000 for the whole period is set.

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Then, click the Save button.

 

All the settings are now completed!

Here is the last step.

 

Recalculation

Click the "Recalculate" button to create the wages-related cash flows.

mceclip16.png

 

Now the cash flows are calculated!

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If the Medical Insurance is paid periodically, you can use the prepayment setting in Medical Insurance.

Please check the link.

 

* Note that Full Budget is available for Xero or FreeAgent users, whose subscription is "Business" or higher.

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