Good day, brooke17.

Thanks for joining us here! Let me show you how to record the cash advance to an employee in QuickBooks Online.

You can set up an Asset account to track the cash advance. You'll want to name it as Employee Cash Advances or anything you like. 

Instead of a Journal Entry, we can record the advance payment using a check. Simply go to the +New button, select Check, enter the details needed, and the employee as the Payee. Make sure to choose the asset account you created.

Then, we need to create a payroll deduction that we'll use to take out funds for the repayment. Please check this link and follow the steps on the QuickBooks Online Payroll section: Add or edit a deduction or contribution.

Once done, we need to update your payroll accounting preferences so that the deductions will be posted to the right account. 

1. Go to Gear icon and Payroll settings.
2. Click the Accounting under Preferences.
3. From the Other Liability & Asset Accounts, change the Cash Advance Repayment account to the asset account you created.

Browse these articles for more details:

• Payroll accounting preferences
• Run payroll reports

Post again here if you have more questions. Wishing you all the best!