Advance Salary
Advance Salary is a short-term, interest-free amount paid to an employee ahead of payday and recovered from future pay. It is not a separate screen — an advance is an employee payment with the Advance Salary box ticked, which is what tells payroll to recover it rather than treat it as salary already earned.
How to give an advance
- Go to HRM > New > Employee Payment.
- Select the employee and the bank or cash account the money leaves.
- Enter the amount.
- Tick Advance Salary.
- Leave the payment unallocated — there is no payslip for it to settle.
- Process the payment.
The tick is the whole difference. Without it the payment looks like a settled salary and payroll will not recover it, leaving the employee paid twice for the same month.
Field reference
| Field | Description |
|---|---|
| Employee | Who is receiving the advance. |
| From Bank Account | Where the money comes from. |
| Amount | The sum advanced. |
| Date | When it is paid. |
| Cash Reference | Your own reference where the advance is paid in cash. |
| Advance Salary | The tick that marks the payment recoverable. |
The Advance Salary tick is hidden when the company's default country is Malaysia. If you cannot see it, check Setup > Company Setup.
Advance or loan
| Advance Salary | Loan | |
|---|---|---|
| Nature | Pay brought forward. | Money the company lends. |
| Term | A month or two. | Months or years. |
| Interest | None. | Possible. |
| Setup needed | None. | A loan type and a loan allowance. |
| Screen | Employee Payment, ticked. | Loan Application. |
What happens next
The advance appears on the employee's next payslip as an Advance Salary deduction, reducing net pay by what was advanced. Track outstanding advances through Advance Salary Inquiry.
Related pages
- Employee Payment — the screen an advance is made on
- Advance Salary Inquiry — outstanding advances
- Loan Application — the long-term alternative
- Payroll Process — where recovery happens