How do I enter an employee advance in QuickBooks?
Quickbooks Desktop can be used to give an employee some advance payments according to the upcoming pay ( using cash, check, or credit). Through Payroll deduction, it can then be reimbursed to the company. To enter an employee advance in QuickBooks one need to have an active payroll subscription which is mandatory.
Steps to enter an employee advance in QuickBooks:
You need to set up a deduction Payroll item to pay back the advance, follow the below-mentioned steps:
- From the QuickBooks Desktop menu at the top.
- Click Lists in the Payroll Item List.
- Select the Payroll Item button, and click New.
- Select Custom Setup, and click Next.
- Choose Deduction, and click Next.
- Click Finish.
Report tracking for employee advance payments or loan.
- Prepare a custom payroll summary.
- Select Report from the top.
- Choose Employees and Payroll.
- Choose Payroll Summary Report.
- Select Customize Report.
- Select display tab and click All Dates.
- Choose payee from the display columns.
- Check % of Row as well.
- Select filters.
- Choose Accounts, as well as select the asset account used for the employee loans from the drop-down menu.