| To assign employees' expenses to advance paymentsIf you grant an advance to an employee, for example, to cover
traveling costs, you can assign the employee's expenses to the advance payment. Usually, the following sequence of events takes
place: - The employee requests for an advance.
- The manager approves the request.
- The company makes an advance payment to the employee.
- The employee spends (part of) the amount during a business
trip.
- The employee returns the receipts.
- The manager approves the expenditures.
- The employee returns the approved receipts and the remaining
cash to the company.
To assign advance payments to expenses, in the Assign Unallocated/Advance Payments to Invoices (tfcmg2106s000) session,
click New and in the Assignment Type field, select Expense. Next, you can enter the details in the Enter Payment Amounts for Assignment (tfcmg2119s000) session. The following rules apply: - You must define a business partner for the payments and the
advance receipts. You can define one, or a few, business partners and use these
for advances and expenses from multiple employees, or you can define a business
partner for each employee. For the business partner you must define at least
the invoice-from and the pay-to roles.
- The expenses must be posted to a ledger account of the Profit & Loss type which is not used as a control account, an intercompany
account, as an integration account, or for fixed assets.
- The tax code of the transactions must be for Singular Tax and the Tax Type must be other than Shifted.
Example of the postings You give your employee an advance of USD 1000 to meet travel
expenses. The employee returns receipts for USD 600 and USD 400 remaining cash.
This results in the following postings: Register the advance payment
to the employee |
---|
Debit | Advance Payment | 1000 | Credit | Cash | 1000 |
Assign the expenses to the advance payment |
---|
Debit | Costs | 600 | Credit | Advance Payment | 600 |
Register receipt of the cash returned by the employee |
---|
Debit | Cash | 400 | Credit | Advance
Receipt | 400 |
Link the advance receipt with the advance
payment |
---|
Debit | Advance Receipt | 400 | Credit | Advance Payment | 400 |
| |