I need to give an employee a cash advance and have set up the deduction in his profile "cash advance repayment". Just unsure how to go about recording the actual cheque? Do i just do a new expense? What category/account would i put it to?
Giving an employee an advance on their pay cheque is sometimes necessary. I'll help you set this up in your QuickBooks Online account.
The cash advance itself will need to be issued using a Cheque. You'll set up a new account in your Chart of Accounts called Employee Cash Advances for reporting this expense. To create this account, click the Accounting tab on the left navigation, and select Chart of Accounts. Select New at the top left corner to create a new account.
To create a cheque, click the Create (+) menu > Cheque.
The next step is to deduct this amount from your employee's pay cheque so they're not overpaid. Here's an article that will guide you through the steps to set up a cash advance repayment to be deducted from an employee's next pay cheque: https://quickbooks.intuit.com/community/Help-Articles/How-to-give-an-employee-cash-advance-pay-on-th....
I recommend consulting with your accountant or tax adviser before setting up a cash advance repayment deduction.
If you've decided to use the cash advance repayment deduction, note that because the pay and deduction report to two different account types, they'll show separately on reports. To balance these accounts, you can create a journal entry debiting the Repayment asset account, and crediting the Reimbursement expense account. Here's an article that helps explain the journal entry tool: https://quickbooks.intuit.com/community/Reports-and-Accounting/Create-a-journal-entry/m-p/262076.
If you have any questions, please feel free to comment below.
Have a great day!