How to book a payroll advance

Sep 08, 2005 4 Replies

I pay employees monthly. Occasionally I have to give an employee a small advance prior to month end. Using the QB 2005 Pro payroll system, what's the best way to handle this?


You can set up a payroll item called "Advance Pay Back" or whatever name you choose and make this item a deduction to net. For this item use an account called "Payroll Advance" - set this account up as a current asset.

When you give the employee m> I pay employees monthly. Occasionally I have to give an employee a small

Actually you should set the Payroll Advance account up as type - Accounts Receivable and call it Payroll Advance Receivable. Everything else should stay the same.

I tried following the instructions. But when I try to create the payroll item, it assumes I'm creating either an expense or liability - i can't assign it to an A/R.

Push F1 for help and look this up! You will find it easily done.

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