Loan is completely diferrent from payslip item.
Payslip shows your salary expense and the sumary of the employee’s earnings, tax deduction etc.
Employee clearing account records the amount your employees will receive from company or company will receive from them if any advance/loan issued.
How to issue loan/advance?
Record: Spend Money
Account: Employee Clearing Account > Omar Faruk > …$100
If you deduct the loan when you pay, go to payslip > Spend Money…
Note: Deduction Items shouldn’t use for loan deduction. It’s for tax deduction.
When you pay your employee, give him a printed copy of the payslip.
You can use a pen on the payslip to write the deduction bellow the total amount.
It’s how I deal with load/advance.