Set Up an Employee Advance Paid Back in Manual Installments

How Do I...

Manual installment advances or loans are typically used when the loan amount doesn't meet your repayment policy or in special situations.

Step 1: Set up the employee payroll field

1. From the Maintain menu, select Default Information, and choose Employees. Sage 50 displays the Employee Defaults window.
2. Select the Employee Fields tab.

3. On a blank line, enter Advance as the name of the new payroll field.

   Note: What you enter here will print on employee paycheck stubs in the deduction area.

4. Enter a G/L account (other current asset) associated with the deduction. To display a list of existing accounts, type ? in this field or select the Lookup button. To add a new account, type + or double-click the field, which displays the Maintain Chart of Accounts window.

   This is typically the same account that was used to issue the loan initially, so it can be offset when the employee pays the loan back.

5. Select the Run check box.

   This allows the employee to continue making loan payments in the following year (if needed).

6. Click OK. to save the field.

Step 2: Enter the advance principle

• During payroll entry, enter in the Advance payroll field a positive amount for which the loan is to be issued to the employee (for example, 200.00).

Step 3: Repay the advance

• During subsequent payroll entries, enter in the Advance payroll field a negative number each time the employee makes a loan payment (for example, -50.00).

What do you want to do next?

• Set up an employee loan paid back in automatic installments
• Set up other payroll deductions
• Set up an employee
• Pay employees
• Perform other payroll tasks
• Read the employee loan or advance overview

Published: March 21, 2017
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