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Set up advance payment and advance repayment in QuickBooks Desktop

by Intuit Updated 7 months ago

Learn how to enter advances paid out to employees as well as advances repaid in QuickBooks Desktop.

How to use default payroll items for advances

  1. Go to the Employees menu.
  2. Select Pay Employees.
  3. Choose the Payroll Schedule you want to use.
  4. Select the employees you want to pay.
  5. Select the dropdown arrow from Earnings and choose Advance Payroll Item.
  6. Enter the amount of the advance.
  7. Select Save & Close.

Set up a manual advance payment

A manual setup of employee advances and repayments is required if you wish to add tax tracking. The default Advance item does not have a tax-tracking type associatate with it. To set up advance payments manually:

  1. Go to List and select payroll item list.
  2. Create new item and choose addition.
  3. Add a name for the addition and select Next.
  4. Select Save & Close.

Repay an advance payment

  1. Select the employee's paycheque that you paid in advance then select Advance Item from the dropdown.
  2. Enter an amount with a minus sign.
  3. Select Save & Close.

Note: The advance pay balance from the YTD column will change.

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