Momscode - Al Manarah - Employee Advance

Employee Advance

The primary purpose of an Employee Advance is to provide staff with short-term financial assistance before their next pay cycle.

Prerequisites,

• Employee
• In Company Master - Set Default Employee Advance Account
  • The Employee Advance will be recorded under the Chosen Account Head defined in the Company Master

• Salary Component
  • Create Salary Component by Entering Name, Abbr, Set Type as 'Deduction' and Link to Appropriate Account Head to ensure Employee Advance repayments are deducted from Payroll

Custom Settings:

• Set Employee Advance Component

Go to Employee Advance List and Click on "Add Employee Advance"

• Select Employee, Employee Name will be auto fetched
• Set Posting Date
• Enter Advance Amount
• Enter purpose
• Enter Repayment Period in Months
• Monthly Repayment Amount will be auto calculated (Advance/Repayment Period)
• Set Repayment Start Date
• The Advance Account will be auto fetched from Company Master
• Then, Save and Submit

From Employee Advance → Create → Payment

• Select Mode of Payment
• The Details will be auto fetched from Employee Advance
• Save & Submit

Return to the Employee Advance, Advance Repayment Details Table will appear upon Submission of Payment

• Click on 'Repay Schedule'
• The Repayment Schedule tracks the Date, Amount, and Payment Status for each Installment throughout the Repayment Period
• The Initial Status will be 'Open'
• Click on 'Update'
• Click on 'Create Additional Salary'
• An Additional Salary entry will be generated for each installment
• Once the Additional Salary is created, the Installment Status will automatically transition to 'Returned', indicating the recovery is scheduled