Employee personal advance account

If i pay adv. salary to my employee, how can i deduct adv.salary from payslip? if i categorized in payslip item as a adv. salary & deduct from payslip it can’t adjust with employees paid in advance. (I tried but could’t find employee clearing account option in deduction of payslip.) Plz give me a good salutation. Thank you.

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You don’t deduct advance salary on payslip. Payslip will show net pay and it’s up to an employee to reconcile they are actually receiving less because they have received some amount in advance.

From your point of view, you know you have paid them exactly how much you are obligated to pay by looking under Employees tab and seeing their balance to be zero.

What I’m planning to do is to make payslip work like a mini-statement which would automatically show payments in advance on payslip. So from data-entry point of view, nothing will change. It’s just that payslip will automatically show these payments in advance amounts so employees don’t get confused.

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When will we get this feature? I have same question like Arun. Thank u.

How to deduct the salary advance for next month pay slip(if i paid 1000 adv i want to deduct the amount 250 in every month),if i deduct the advance in pay slip it’s showing in employees wrongly.

If you paid the Advance separate from the Payslip then you would Spend Money with the account being BS Asset - Employee Advances. Then under Settings - Payroll Items - Payslip Deduction Items you would create an item called “Advance Repayment” with the account being Employee Advances.

This way both the employee’s pay and the advance balance would be reduced by the instalment.

I should add, that you would create the Employee’s payslip showing normal gross pay and taxes.

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You can also just spend money and allocate it to Employee clearing account. In future, payslips will act as “mini-statements” too so if you paid to employee in advance, the next payslip will automatically show it.

Thanks.

if i pay the advance to employee spend money in BS asset - ea and deduction using repayment item is it correct.

Please give me one sample.

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Yes. and follow the screenshots as a sample. Starting with the payment:

The BS would be:

Creating the deduction item (ignore the Liability acct heading, deductions are normally Liabilities)

The Payslip would be

And the BS would be (with the 350 being the unpaid portion of the payslip)

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It’s working fine,Payee drop down not showing in the payment.

The Payee doesn’t have a drop down

but @lubos then your salary/wages will show less in P&L side.

1st Step: Add “Advance to staff” on Asset side
Add “Advance to Staff” in payslip deduction Item.

2nd Step: Whenever you advance money to staff pass Journal Entry (New Payment)-
Advance to staff A/c Dr.
To Bank A/c

3rd Step: While making payslip pass given entry-
Salary A/c Dr.
To Bank A/c
To Advance to staff A/c

4th Step: While making payment entry pass following entry-
Employee Clearing A/c Dr.
To Bank A/c

Only problem I’m facing is that in totality all things will be fine but It would be betrer if like custmer aur vendor , we don’t get name of the employee like for Custmer /Vendor and thus they don’t get adjusted automatically.

Hope team will come out with solution for this too.

regrads.

Nothing happens automatically in Manager. It is not clear what problem you are looking for a solution to.

The above is incorrect - when making the payslip it would be
Salary A/c - Dr
Advance to staff A/c - Cr
To Employee Clearing A/c

You haven’t explain where you aren’t getting the name.

Yes i had made mistake in writing, thanks for correcting me, I too pass same entry.

And I was talking about dropdown box in reciept and payment account.
Just like when you choose Account Receivable or Account Payable you get dropdown box of Customer or Vendor.

So my point was if we get a customization to link a list like customer/Vendor/Employer,etc to get associated with any Balance Sheet head(i.e Accounts)

It will help me to get direct list of all advances and that too employeewise.

Hope you understood my view.

Thanks & Regards.

For advance to staff, you don’t need separate account. Just pay employee more than your owe them as per payslips and allocate the amount paid to their employee clearing account. Their employee clearing account will be in debit.

In future, when you print payslip, Manager will automatically recognize this debit amount as employee payment in advance.

But @lubos advance will be given before preparing payslip.

I think there should be one option which can resolve this issue, no doubt your special account method is very effective.

But instead of that what if we get an option of associating a list (say employee, customer,supplier) with that account while creating that account.

Then there will be no need to create any special account for this purpose.

No one has mentioned using special accounts.

It seems you have not tried actually doing what you say you want to do. When you pay an advance to an employee, post the payment to Employee clearing account. A field for the employee name automatically appears. Select the employee:

As @lubos already told you, this will debit the employee’s subaccount under Employee clearing account.

This is there in guide provided by lubos.

As far as this is concerned till now I’m doing this only, but this is not actually correct method.

Suppose your salary is 15k and I’m paying you 10k, you ask me why only 10k then I’ll tell you I have made deduction towards your advance.

I want this to reflect on salary slip itself brother, that’s why I’m suggesting this.

Employee clearing Account gives me arithmetically correct entry but not for reporting purpose.

You are saying pass entry of advance from customer through Trade payable account. But as per our Tax Laws at the end of the FY we have to report all the advance, how that will be possible at that time.

I don’t think my suggestion is useless.

Regards.

don’t search for that guide here, we had similar discussion regarding advance from customer/to supplier in that topic he suggested me that guide.
That topic was very much similary that’s why made reference to that guide here.