Employee Advance
Employee Advance
Occasionally, employees need to travel, attend meetings, or perform work for the corporation outside of the workplace.
On such occasions, the company can reimburse anticipated expenditures such as travel, accommodation, meals, or other business expenses in advance.
This method ensures that employees don't use their own cash for work-related items.
The Employee Advance form within ERPNext allows you to record and track such payments.
- The employee can use this form to enter all the required details, like the purpose of the expense, the amount the advance is being asked for, the date when the expense is going to occur, and any other remarks or details that are significant.
This maintains very high levels of transparency and accountability for advance payments.
Once an Employee Advance is requested by an employee, there is a procedure followed to get it approved. The approving person checks the amount being requested, why the charge is being made, and the details before taking it for approval and sending and accepting the record.
The payment is made by the accountant and created as a Payment Entry to hand over the money to the employee once the advance has been approved and submitted.
1. Wants
Ensure the system has the setup records it needs before creating an Employee Advance: * Employee: The requesting employee should be in the Employee master.
Department: To ensure permissions and costs are correctly channeled by department, the department of the employee should be identified.
Chart of Accounts: Ensure appropriate ledger accounts are established for recording advance payments in terms of the company's chart of accounts hierarchy.
This ensures the advance is being matched up with the appropriate liability or asset account, and that's how financial reporting is correct.
