Create an advance payment for employee expenses

You can pay employees in advance for expenses that they are going to incur by issuing advance payments.

The purpose of an advance is to issue a payment to an employee in anticipation of incurring expenses from that employee without having a pre-existing expense report. Later, when you receive the expense report, you apply the advance to that report.

In other words, the advance becomes credit that is then available to apply against an expense report that you receive later. For example, say a new employee needs $500 to pay a deposit for moving expenses so she can join your company. You create an advance of $500 and issue a payment to the employee for that amount. Later, you receive an expense report for $2,000 of relocation expenses. When you pay that expense report, you apply the $500 advance, which reduces the amount of the payment to $1,500.

For multi-currency users: If your company uses multiple transaction currencies, you may create advances only in your base currency. Furthermore, you may apply base-currency advances only to base-currency expense reports.

This page allows you to create multiple line items for the advance. Later, when you make the payment, the advance is shown as a credit on the Select To Pay page. You can then match up the line items of the advance to the line items of the expense report that you are paying.

If you intend to pay by check (either printed locally or online), you start that process here. However, if you have already paid the employee cash (or intend to do so) you simply record the cash payment.

The resulting payment request then appears as a line item on the Print Checks page. For more information, go to Print expense reimbursement checks.

Subscription

Time and Expenses
Regional availability

All regions

User type

Business
Permissions

Expenses

  • Pay in advance: Run

  1. Go to Expenses > All > More and select Add (circle) next to Advances.

  2. Select a Reimbursement date.

  3. Select an Employee.

  4. Choose a Payment method.

  5. Select a Bank.

  6. Enter a Description.

  7. Select an Expense type.

  8. Choose an Account.

  9. Enter a Memo.

  10. Optionally, choose Dimensions.

    A dimension is a category of data that you can organize and sort in meaningful ways. Sage Intacct provides the following predefined dimensions:

    • Location
    • Department
    • Class
    • Customer
    • Item
    • Project
    • Vendor
    • Employee
    • Warehouse (if you subscribe to Inventory Control)
    • Contract (if you subscribe to Contracts)

    In addition, Intacct enables you to define new dimensions to suit your needs. Use these user-defined dimensions to organize and sort categories of data unique to your business. For example, if you’re a software company with multiple product lines, you can create a user-defined dimension called Line of business. Then add the values Direct customers, Channel partner, and OEM.

    Dimensions enable you to collect, sort, analyze, and report on data within one category, or between categories, so you can identify key factors such as:

    • Your most profitable or most costly items or customers
    • The return on investment of a project or department
    • Whether and to what degree a new product or product line is successful
    • Which way a particular aspect of your business is trending
    • Intacct dimensions give you fine control over data definition and data hierarchy

    With dimensions, you can customize financial reports around specific business activities, get greater visibility into how the business is doing, and make faster, more meaningful business decisions.

    Think of dimensions as a more powerful alternative to subaccounts.

    Additional fees can apply for the Project dimension and user-defined dimensions. Contact your account representative for more information.

  11. Select Save.