---
title: Payroll Processing
description: "Processing payroll in Oojeema can be done in 2 ways. A **Journal Voucher** can be used not only for adjustments but also recording of transactions that is not currently supported by any modules in Oojeema. You can do journal voucher…"
url: "https://resources.oojeema.com/docs/payroll-processing/"
updated: "2025-09-26"
category: Transactions
---

# Payroll Processing

Processing payroll in Oojeema can be done in 2 ways.

A **Journal Voucher** can be used not only for adjustments but also recording of transactions that is not currently supported by any modules in Oojeema. You can do journal voucher entries if your transaction does not need to capture any tax information such as **VAT** and **Withholding Taxes** (EWT & CWT)

### Direct Journal Entry

A direct journal voucher entry requiring only 1 journal voucher transaction to record all payroll related entries including **salaries**, **allowances**, **other compensations**, and **deductions** for contributions and withholding tax payable to the government.

The approach here is to do a direct credit from the Cash in Bank account.

[![](https://resources.oojeema.com/wp-content/uploads/2022/09/Screen-Shot-2022-09-18-at-11.21.05-AM-1024x294.png)](https://resources.oojeema.com/wp-content/uploads/2022/09/Screen-Shot-2022-09-18-at-11.21.05-AM.png)
Sample entries for a Direct Journal Entry approach

To do this in Oojeema follow these steps:

1. From the **Dashboard** go to the side bar and select **Journal Voucher**
2. Enter the appropriate **Reference** and **Notes** (*optional*)

[![Payroll - Direct Entry sample screen](https://resources.oojeema.com/wp-content/uploads/2022/09/Screenshot-2022-09-18-at-11-24-04-Edit-Journal-Voucher-Oojeema-1024x998.png)](https://resources.oojeema.com/wp-content/uploads/2022/09/Screenshot-2022-09-18-at-11-24-04-Edit-Journal-Voucher-Oojeema.png)

### Payroll Using Expense Module

If you wish to record the disbursement of the **Salaries and Wages** and other government payables via cash or check disbursement you can use this approach.

You would still need to do a Journal Voucher but with a small difference.

We credit the **Salaries and Wages Payable** account instead of the **Cash in Bank** account.

[![](https://resources.oojeema.com/wp-content/uploads/2022/09/Screen-Shot-2022-09-18-at-11.43.05-AM-1024x307.png)](https://resources.oojeema.com/wp-content/uploads/2022/09/Screen-Shot-2022-09-18-at-11.43.05-AM.png)

To do this in Oojeema follow these steps:

1. From the **Dashboard** go to the side bar and select **Journal Voucher**
2. Enter the appropriate **Reference** and **Notes** (*optional*)
3. After creating the **Journal Voucher**, click save
4. Go to the side bar and select **Expense**
5. Create an Expense transaction with the Employee as a Vendor. ([adding a vendor](https://resources.oojeema.com/docs/managing-customers-vendors/#1-toc-title))

[![Sample Expense entry for employee payroll expense](https://resources.oojeema.com/wp-content/uploads/2022/09/Payroll-Expense-Employee-979x1024.png)](https://resources.oojeema.com/wp-content/uploads/2022/09/Payroll-Expense-Employee.png)
Sample Expense entry for employee payroll expense

To issue a payment for this expense refer to [Issuing Payments](https://resources.oojeema.com/docs/issuing-payments/)

Repeat the steps for other employees and for the appropriate government agencies (BIR, Pagibig – HDMF, and Philhealth – PHIC).