In this article, we will show you how to set up a salary advance payment for an employee.
Creating a document type
First, we will create a document type for the salary advance, which will be used when generating it. The document type can be created in the menu Accounting - Document Types - Other Liability Types, or you can use one that we have already pre-configured:
This document type can be assigned either to all employees in the company settings under the Modules - Employees - Document Types tab using the magnifying glass icon:
Or you can assign the document type to a specific employee in the menu Employees - HR under the Basic Information - Advance Liability Type tab:
Salary advance in payroll update
The salary advance is then entered in the menu Employees - Payroll Update. Open the employee record by clicking the Edit button, and on the Summary tab click the New button. Here, select the payroll component Regular Advance or Extraordinary Advance and check the user-defined amount change:
Then click to recalculate the payroll.
The advance will then also appear on the pay slip:
Entering the advance into a payment order
If the advance is paid to a bank account and you want to include it in a payment order, you must first generate a liability towards the employee. This is done in the standard way using the Generate Liabilities button in the payroll update:
In order to generate the liability, payroll must first be calculated for all other employees as well. These payrolls may be zero, but the Calculated date field must be filled in.
A liability will then be generated with the document type that we pre-configured in step 1.
This liability can then be added to a payment order in the standard way.
Frequently asked questions
1) I cannot generate the other liabilities because the advance is already included in a payment order.
In order to generate the other liabilities, you must first remove the advance liability from the payment order, and if it has already been matched with a payment, you must also unmatch it. After generating the other liabilities, match it again so that it is no longer offered in the payment order.
2) Is it possible to generate only a single liability for the salary advance?
Unfortunately, this is not possible. The Generate Liabilities button always generates liabilities for all employees. You can manually enter the liability in the Other Liabilities menu, or add the amount to a payment order without a link to a specific document.