Employee Advance in Frappe HR: Advancing Money for Expenses
An Employee Advance records money paid to an employee ahead of an expense say, cash given before a business trip. The advance is paid out, the employee spends it, and it’s later settled against their Expense Claims, with any unused balance returned.
You will find it under Home > Human Resources > Expense Claims > Employee Advance.
BEFORE YOU START
Have these ready: the Employee, the Company, an Advance Account (the asset ledger used for employee advances), and the user who will approve the advance.
How to create an Employee Advance
- Open the Employee Advance list and click New.
- Select the Employee.
- Enter the Purpose of the advance and the Advance Amount.
- Select the Advance Account and the Company.
- Set the approver, then Save and Submit.
Paying the advance
Once approved and submitted, the advance is paid out through a Payment Entry (or journal), and its status moves to Paid. The amount sits in the advance account as money owed by the employee until it’s accounted for.
Settling the advance
When the employee files an Expense Claim, link the advance to it so the expenses are adjusted against the advance first. If they spent less than the advance, the leftover can be returned; if they spent more, the extra is reimbursed through the claim. Either way, the advance is fully reconciled rather than left hanging.
NOTE
The advance’s status tracks where it stands from Draft to Paid, and on to claimed or returned as it’s settled. Watching these statuses is the simplest way to see which advances are still outstanding.
TIP
Always settle advances against the related Expense Claim rather than treating them separately. Linking the two keeps each employee’s advances and actual spend reconciled, so nothing is double-paid and no advance is forgotten.
Related Topics
- Expense Claim
- Expense Claim Type
- Travel Request
- Employee
SUMMARY
An Employee Advance records money paid to an employee ahead of incurring expenses. Create one with the employee, purpose, amount, advance account, and company, then submit and pay it out via a Payment Entry, moving its status to Paid. Settle it by linking the advance to the employee’s Expense Claim so expenses adjust against it, with any surplus returned or shortfall reimbursed. Status tracking from Draft to Paid to settled shows which advances are still outstanding.
