To give an employee an advance on pay – go to Contacts > Locate Contact (Employee). Once you select the employee, go to Accounting > Checking > Create New Entry and cut a check out of checking hitting the Lizzy 199.99.999 flush account. Then, go to Accounts Receivable and add a new customer receivable to their AR account offsetting with the 199.99.999 flush account.
The other way you can create an employee receivable for Payroll Deduction is by having the employee make a purchase ( invoicing ) and put the purchase on Account ( like any other customer ).
AR Deductions from Payroll:
- Go to Settings > Payroll > General and create a Deduction in the system. Set the deduction type to be an A/R Payroll Deduction. Select the 259.99.998 account for AR Payroll Deductions and make sure you set the tax type to “Other Deduction from Net Pay.”
- Go to Settings > Payroll > Employee and add this deduction to the employee. When you do this, the name of the deduction turns blue (a clickable link) that you need to click on and check mark the apply box so that when lizzy deducts the amount from payroll, she will automatically go in and apply it to the employees accounts receivable account. If you are taking a set amount out, you can fill in the amount to deduct. Our recommendation is to leave the amount blank, this way when you are generating checks, you can set the amount when you generate payroll.
- Go generate your paychecks and lizzy will apply the deductions to the employees AR account, reducing the balances there.