QB Issue Resolution:
Chevvy,
There is no need to create an item called Advance Repayment. But if you did, it must be linked to the same Liability Account as the Advance item. And, as a deduction type item the amounts entered in the Advance Repayment item must not be preceded by a minus sign.
That being said, the Employee Advance item (set up as Advance type by QB) is easier to use: For instance, to give an employee an advance of $500.00 you would:
Open a Paycheque and select the Advance item in the Earnings section.
Enter $500.00 in the Rate column – leave the hours blank.
This action records the Advance given to the employee without hours or taxes
To record the repayment of the Advance, on a subsequent paycheque:
Complete the Earnings section of the paycheque in full – include all hours, etc.
On the last line of the Earnings section. select the Advance item
Enter -$500.00 (or the amount being repaid on this paycheque) in the Rate column – again leaving the hours blank
This action deducts the $ amount of the Advance given from the NET paycheque – after taxes and hours have been accounted for.
There is nothing more to do.
Resolution for Issue 'After I record a cash advance and it gets deducted from the employee’s paycheck, why does the advance stay in the employee setup and get deducted in future pay periods?' available: Yes (Solved).
Source: Intuit Community forum.
After I record a cash advance and it gets deducted from the employee’s paycheck, why does the advance stay in the employee setup and get deducted in future pay periods?: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.
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