Processing employee advances

You might need to process employee advances, cash payments issued to an employee for anticipated expenses. For example, if you have employees that travel frequently, you might provide them with cash payments before receiving their expense reports. Processing employee advances is similar to processing invoices: you specify, release, and pay the advance in separate steps. This procedure describes how to process employee advances.

Process an employee advance

Use Employee Advance (EE20.1) to specify the advance.
Specify this information:

Employee

You must define an employee as a vendor on Vendor (AP10.1) before you can specify an advance or expense for that employee.

Advance

Specify a unique number to identify the advance. (Similar to an invoice number.)

Approval Code

Before you can release an advance to Accounts Payable for processing, you must assign an approval code. You can assign a code here or assign it during release.

Payment Button

To create a manual payment for the advance, click the Payment button to open the Payment subform.

Comments Button

To define a comment for the advance, click the Comments button to open the Comments subform. Comments can be used to associate a memo entry to an employee advance report and can be printed on checks.

Note: To display unreleased advances that have no approval code assigned, leave the Approval Code field blank and select the Inquire form action.

Release the expense.


To	Use
Release select employee advances	Advance Release (EE35.1). Select the Release line action for each advance you want to release, and then select the Change form action.
Release all or a group of employee advances	Mass Employee Release (EE135)

Run Cash Requirements (AP150) to select released advances for payment.
Specify this information:

Pay Through Date

All released advances not on hold, that have advance dates on or before the Pay Through Date are scheduled for payment.

Emp Reimbursement

Ensure you select Yes in the Employee Reimbursement field on the Select Options tab to include advances.
Run Payment Forms Creation (AP155), Payment Tape Creation (AP160), or Electronic Payment File Creation (AP161) to pay scheduled advances.
Run Payment Closing (AP170) to change the advance status to historical, create general ledger entries, and create the offsetting credit memo.
Run Invoice Accrual Reconciliation (AP136) to reconcile to General Ledger. This program lists the difference between what has been paid (using AP170) and what has been expensed (using AP175).

Related reports and inquiries


To	Use
Display advances for an employee	Advance Inquiry (EE90.1)
List unreleased employee advances, expenses, or paybacks for a company	Epense, Advance, or Payback Edit (EE220)
List released or historical advances, expenses, and paybacks grouped by employee for a company	Expense or Advance Report (EE230)
List unreleased employee advances, expenses, and paybacks that are released when you run Mass Employee Release (EE135) with the same parameters	Expense Release Edit (EE235)
List employee-paid or company-paid expense distributions for a company	Expense Analysis Report (EE275)