@Abeiku .
Thank you so much for your kind support. This method works fine. I will use it from now.
However, Having able to attach the Employee Control accounts / Employee Clearing Accounts to the payslip deduction item might be an easier solution if Manager Developers consider implementing it.
Thanks to everyone as well to participate in this topic.
Do a journal entry for each employee with a debit for the loan and a credit when it is repaid. That way you will have a record of all the transactions.
Hi @Abeiku my question is, when recording the transaction for the loan or advance do you use payments and if you do how do u link it to the specific employee account. Or do you use a payslip to record the payment of the advance
Before posting on the forum you are advised to first look into the guides. The solution is at Pay employees | Manager
I just read this post and there is a related discussion here, should I exit go and scroll through the forum? If there is a related query why cant it be made here
I did not say scroll through the forum but read through the guides first as per rules at FAQ - Manager Forum because it answers your question.
From the rules:
How can I get help quickly?
Remember that other Forum members, moderators, as well as Manager’s developers, are scattered around the world. The person who can answer your question may be in a different time zone. Help yourself by following two simple pieces of advice:
- Read the Guides first. They explain many features and functions of Manager. They include helpful illustrations and examples. We are always adding new ones and updating existing ones as capabilities of the program improve.
So rather than browsing and posting on the forum you should first solicit the guides.
[ Added: to follow the guides was also advised to you in another topic Adding Customers with outstanding debts to manager.io - #2 by Abeiku and also Login for new restricted users - #2 by lubos ]
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Hello! Cloud user here!
I have the same issue. I read through the posts and answers and still don’t really understand what I need to do.
I have a payslip deduction item called “Loan repayment” that is put under account “debtor/loan” which is an asset account. But this still doesn’t affect the employees balance. It just looks like they got paid less.
I apologize for my stupidity. I have read the posts and the guides, but I can’t wrap my head around it.
Here is an example:
Salary advance has been entered as a payment towards that employees clearing account. So they have a debt towards the company. When I deduct 50,000 as a loan repayment on the payslip this doesn’t register on the employees balance.
Employee deducted 50,000, but manager just treats it as any other deduction and considers it as part of the salary rather than putting the balance to 0.
That is because you defined it as a deduction.
Yes, because it says that’s how deductions to salary advances should be put in the guide. So I assume for now I shouldn’t put it on the payslip and just do a seperate line when doing the salary payments and add a negative amount for the payback amount.
Edit: The annoying thing with this is that I can’t use the manager payslips to print for the staff as the deduction of the salary advance has to be put as a seperate transactions in order to properly show the employees balance.
I am sorry, but I cannot follow your explanation.
Don’t be sorry, I can’t explain it 
The guide says a repayment of a salary advance should be put on the payslip as a deduction.
Employee took a salary advance of 100. Employees salary is 1,000.
Balance for that employee shows as -100.
New payslip is entered with the salary advance deduction as per the guide: 900.
Employee gets paid 900.
Balance remains -100.
I can make another entry for the repayment, but then it won’t show on the salary slip.
This explanation was not very good either, but it’s the best I can do. Anyhow I don’t think manager works the way I expected in this case and I think it should be improved.
Edit: It seems right now I can either.
- Make a salary slip that shows what the employee will receive in their account, but the balance for that employee in manager.io will not be correct.
or - I can make the balance be correct, but the payslip will not show the actual amount the employee got paid.
This is nowhere in the Guides. A salary advance is similar to the salary itself, i.e. an earning item. Please check example below how you best can treat advances based on the advise given by @Tut that these are earning items.
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Create expense accounts of employee expenses in the Chart of Accounts, 1 for Salaries and 1 for Salary advances as for example in image below (where I grouped them under Employment Expenses group:
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Create Payslip Earning items in settings, as for example in screenshots below:
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Create a Payslip with both a Salary and a Salary Advance, see example:
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View the Payslip and click on New Payment and complete as in screenshot:
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The Summary screen will now show:
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Now create a new Payslip for the Employee as follows and enter -500 (minus 500) in the Salary advance earnings field (this is what @Tut referred to as “negative earnings”. I also changed the descriptions, i.e. August Salary and Deduction on August salary advance in below screenshot.
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View this payslip and click on New Payment and enter as below:
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The Summary screen now shows 4,000 salary paid and no longer any advances open.
That’s all!
Ok, maybe I got it wrong. But I will not be able to use the individual balance for the employee? If you go to “Employees” you can see if they have received an advance or if all is cool, but like this I wouldn’t right?
Why not just create a test business and set it up as I showed you. Then play around with it, you will see that for example it is much easier to track all the advances paid or open from the Salary Advances expenses (Summary screen, click on amount or - (when all setteled) and you would see a screen like below:
Hmm, thank you for this! I will have a closer look at this.
That sounds like you entered the advance twice. Your description is still confusing. @eko has given you a thorough explanation and been kind enough to create an extensive example. You need to follow through. I am withdrawing from this discussion, as I have nothing else to add.
I don’t think I get it.
If I do it that way I assume I won’t know the balance for the individual staff members?
Sorry but I gave the best possible instructions and it functions as expected. If you are not capable of following my steps then maybe you should ask a college or friend to sit with you and together you implement the steps. There is nothing I can add to this discussion beyond what I already did and similar to @Tut will not further participate as it is not needed.