Section 1: Create the Loan/Advance Field

1. Select Maintain, Default Information, Employees.
2. Select Employee Fields tab.
3. Find the first unused line and enter EmpLoan for the Field Name.
4. Select G/L Account to be used; typically, this should be another current asset account.
5. Select Run box, this ensures the balance will carry over to the following payroll years if necessary.
6. Click OK.

Section 2: Disburse the Loan/Advance

1. Select Tasks, Payroll Entry.
2. Select Employee ID and enter a Date.
3. Find the EmpLoan field and enter the loan amount; all other payroll fields and pay types should be $0.
4. Note: You can also include the loan disbursement as part of the employee's next paycheck.
5. If printing the check, click Print; if the loan has already been disbursed and you are only recording it, enter a Check Number and click Save.
6. Close the window.

Section 3: Flat-Rate Repayment

1. If you wish to manually enter the repayment amount on each paycheck, enter the amount as a negative number in the EmpLoan field when creating payroll until the full amount has been repaid.
2. To have the repayment amount fill in automatically, select Maintain, Employees/Sales Reps, and select the employee.
3. Select Employee Fields tab.
4. Clear Use Defaults box on the EmpLoan field line.
5. Enter the repayment amount as a negative number in the Amount field.
6. Click Save.
7. Once the loan has been repaid in full, return to this window and select Use Defaults box on the EmpLoan line.

[BCB:161:Chat 50 US:ECB]