How do I record a contribution towards pension of my staff in Zoho ERP?

You need to record the pension contribution as an expense to your company. For this, you need to create an expense account and a liability account to track the pension payable.

Create an expense with the newly created Expense account and pay for it through the newly created Liability account. Then, while actually paying the pension amount, select the liability account from the Expense Account dropdown. Please follow the steps below to do the same.

• Go to the Accounting module in the left sidebar.
• Switch to Chart of Accounts tab in the modular bar.
• Click + New Account on the top right corner of the page.
• Enter Pension as the Account Name and choose Expense under the Expense section as the Account Type. Click Save.
• Click New Account again. Enter Pension Liability as the Account Name and choose the Account Type as Other Current Liability under the Liability section. Click Save.
• Next, navigate to Purchases and select Expenses.
• Record the salary excluding pension as a separate expense.
• Create another expense with Pension as the Expense Account and Pension Liability as Paid Through.
• While paying the pension amount, create an expense with Pension Liability as the Expense Account and either Bank or Cash as the Paid Through account.