Repaying an employee advance with a personal check

ApexBoss · ‎February 16, 2022

I have an employee advance that the employee repaid with a personal check instead of having the amount deducted from his paychecks. He was paid the advance as a vendor, not through payroll. How do I account for the repayment?

AlexV · ‎February 16, 2022

Hello ApexBoss!

Thank you for the reply. Let me help you in recording the cash advance repayment.

You can simply create a deposit. Then, make sure to select the same account you used to give the advance. Follow these steps:

Go to the Banking menu and select Make Deposits.
Select the employee in the Received From drop-down and the account you used in the From Account drop-down.
Enter the other details needed such as Amount, Deposit To account, and Date.
Tap Save & Close.

I also added this article if you need to reconcile your accounts: Reconcile an account in QuickBooks Desktop.

Keep your posts coming if you have other concerns. Take care!

View solution in original post

Candice C · ‎February 16, 2022

Good evening, @ApexBoss.

Congrats on making your first post here in the Community. I hope your day is going well so far.

Before digging further, have you tried the steps listed in our guide below:

Create an employee advance

This is the article you'll find to ensure you get this recorded properly in your account.

Let me know if you've reviewed this guide before or if the steps did/didn't work. I want to ensure that you get this resolved a soon as possible.

ApexBoss · ‎February 16, 2022

Thank you.

Yes I have reviewed those steps, I do not see an option for when the employee gives us a personal check to pay back the amount. I am only seeing how to deduct from their paychecks.

I may be overthinking this process, seems it should be fairly simple to point the deposit of the employees personal check towards the advance, but I am drawing a blank on how to do that.

AlexV · ‎February 16, 2022

Hello ApexBoss!

Thank you for the reply. Let me help you in recording the cash advance repayment.

You can simply create a deposit. Then, make sure to select the same account you used to give the advance. Follow these steps:

Go to the Banking menu and select Make Deposits.
Select the employee in the Received From drop-down and the account you used in the From Account drop-down.
Enter the other details needed such as Amount, Deposit To account, and Date.
Tap Save & Close.

I also added this article if you need to reconcile your accounts: Reconcile an account in QuickBooks Desktop.

Keep your posts coming if you have other concerns. Take care!

ApexBoss · ‎February 16, 2022

Thank you, I was definitely over thinking that one!

Much appreciated!

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Repaying an employee advance with a personal check