This guide covers the management and payment of pay and travel advances, their handling from the perspective of the income register, the deduction of pay advance on the payslip, and the correction of pay advance balance errors.
General about pay advances
Netvisor's Pay and travel advances function is used to manage and pay pay and travel advances. This user guide explains pay advances and their handling, as well as the correction of the pay advance balance from a software-technical perspective, and does not take a stand on the current guidelines of the tax authority or the income register. Always check the currently valid guidelines from the aforementioned authorities.
You can open the view or perform the function by selecting Payroll > Payroll > Pay and travel advances.
Netvisor's pay advances are net in the software and the payment material formed from pay and travel advances is handled as a bank transfer. The posting of the pay advance in payroll follows the posting setting given in the Pay advance salary type settings.
Please note that when paying a pay advance in the Pay and travel advances section, payroll side costs are not calculated.
Check or edit the posting settings by selecting Payroll > Payroll > Salary model management > Company-specific salary types > click Pay advance salary type > Accounting settings.
The Pay advance function can be used in two different ways depending on whether an income type allocation has been given to the Pay advance salary type in the salary type settings or not.
If the salary type has not been allocated an income type, no earning payment report is formed to be sent to the income register.
Check the income type setting by selecting Payroll > Payroll > Salary model management > Company-specific salary types > click Pay advance salary type > income type.
The default salary type "Pay advance" in the software cannot be manually added to the payslip via the "add new salary type row" dropdown menu.
Handling advance when Pay advance salary type has been given income type for income register reporting
When you want to pay a pay advance to an employee and the income type is defined, proceed as follows:
You can open the view or perform the function by selecting Payroll > Payroll > Pay and travel advances.
Click the "Add new pay or travel advance" function.
Select the employee and the type of advance from the opened view.
Enter the due date (current day or a future date).
Enter the amount to be paid and an optional specification.
Select the desired action upon saving:
Transfer to payment: The payment must be confirmed in Payroll > Payroll > Pay salaries.
Save and mark as paid: Choose this if the money has already been paid to the employee as a separate bank transfer.
Select income register reporting:
Send the earning payment report formed from the advance to the income register.
Leave the earning payment report formed from the pay advance unsent. If the report is left unsent, it remains in Netvisor in the Earning payment reports function with the status unsent.
Please note that the income type of the Pay advance salary type must be the same as the income type from which the advance is later deducted on the actual payslip.
Handling advance when Pay advance salary type has not been given income type for income register reporting
When you want to pay a pay advance to an employee without an income type definition, proceed as follows:
You can open the view or perform the function by selecting Payroll > Payroll > Pay and travel advances.
Click the "Add new pay or travel advance" function.
Select the employee and the type of advance from the opened view.
Enter the due date (current day or a future date).
Enter the amount to be paid and an optional specification.
Select the action upon saving:
Transfer to payment: The payment must be confirmed in Payroll > Payroll > Pay salaries.
Save and mark as paid: Choose this if the money has already been paid to the employee as a separate bank transfer.
Neither choice forms an earning payment report.
Deduction on payslip
When a pay advance has been added to an employee and the next time a payslip is generated for the employee, the program automatically forms a Pay advance salary type row on the payslip. The amount of the salary type is the sum of the paid pay advance or the pay advance balance. The pay advance reduces the net pay without a minus sign.
When the payslip is generated and the pay advance row has been formed on the payslip, the received and deducted pay advance balances are visible in the Pay and travel advances list view for the respective employee (see image below).
You can manually edit the amount of the pay advance to be deducted visible on the payslip in the salary type edit view of the payslip. In this case, the remaining undeducted portion of the advance will automatically form on the next generated payslip.
Advance balance list view
You can open the view or perform the function by selecting Payroll > Payroll > Pay and travel advances.
The function shows the received and deducted advances and the pay advance balance for each employee.
If the received pay advance is more than the deducted pay advance, the pay advance balance automatically transfers as a deduction to the next generated payslip.
If the received pay advance is less than the deducted pay advance, the pay advance balance automatically transfers as an addition to the next generated payslip.
Correcting pay advance balances
Error situations related to pay advances are most often caused by the Pay advance salary type being manually added to the payslip, and the program's Pay advance section has not been used in handling the pay advance.
Situation 1: Extra pay advance as negative (adds to the payable amount)
This means that more pay advance has been deducted from the employee than has been paid in Netvisor's "Pay and travel advances" function.
Example of payslip rows:
Pay advance -500
To be paid 500
Correct the situation as follows:
Add an advance of the same amount as the row formed on the payslip to the employee in the Pay and travel advances function.
Mark the pay advance as paid.
Delete the formed payslip and recreate it after saving. The advance will no longer form on the payslip.
Check that the "pay advance balance" is zero for the person in the list view.
Situation 2: Extra pay advance as positive (reduces the payable pay)
This means that more pay advances have been added to Netvisor than have been deducted.
Correct the situation as follows:
Let the program handle the advance through one payroll calculation to zero out the advance situation.
If you want the advance rising on the payslip not to be visible to the employee, hide the Pay advance salary type during the formation and printing of the payslip from salary model formatting.
Adjust the amount of the "To be paid" salary type row to the desired amount in the payroll accountant's view tab of the payroll process by clicking the "pencil notebook" at the end of the salary type row.
In the future, the advance will no longer rise on the payslip, and in this way the program interprets it as handled.
Pay advance usage in payroll
Pay and travel advances are used in situations where the employee receives part of the earned pay for use before the actual agreed salary payment date. By default, pay advances are not used to correct incorrect amounts or deductions in payroll or to recover pay. Pay advance is only suitable for paying pay in advance, the amount of which is deducted in parts or in full from the next payslips to be paid.
For error situations in payslips and their correction, there is a separate guide: Correcting payslip
Payslip data can be corrected either in the next payroll, by recovery and unjust enrichment, or by forming an additional payslip. The data of the original payslip can be edited if its earning payment report is invalidated, after which the original payslip can be returned for editing.
The earning payment report data is corrected according to the instructions of the income register either with a replacement report or by invalidation.
Travel advance
You can perform the function by selecting Payroll > Payroll > Pay and travel advances > Add new pay or travel advance.
Select as the type: Travel advance.
If you wish, enter the actual payment date in the "Specification" field. Note that the payment date cannot be earlier than the current day.
Select Save and mark as paid.
When the employee creates the next travel expense report, the paid travel advance can be deducted from it.
Make sure that the travel expense report to be offset is in the status "Travel expense reports waiting for payment" so that it is visible in the payment view. The travel expense report moves to waiting for payment when it is "Approved and transferred to payment". When the travel expense report is approved and transferred to payment, the respective travel expense report is visible in the stage "Travel expense reports waiting for payment".
You can open the view by selecting Travels > Travel and accounts of expenses > Pay travel and accounts of expenses.
Proceed in the payment view as follows:
Open the details of the travel advance to be allocated by clicking the checkbox in front of the employee's name.
Allocate the travel advance up to the amount of the travel expense report so that the balance on the "To be paid" row is zero.
Make sure that the employee has an account number saved so that you can continue to the confirmation view.
Select the account to be used and select Continue to confirmation view.
Send the material to the bank normally. No money is transferred to the employee, because the payable amount is zero. The payment event allocates the travel expense report and the travel advance to each other and the program forms a voucher for the transaction. In connection with the payment event, it is possible to send the formed earning payment report to the income register or skip sending the earning payment report to the income register.
Finally, the rows are visible as paid. You can view paid travel expense reports via the travel expense report list using the advanced search by selecting paid travel expense reports to be displayed. A voucher is created as soon as the travel expense report has been marked and allocated to the travel advance, and an amount of 0 euros has been transferred to payment.
Access rights
The "Pay and travel advances" view requires edit rights in the payroll function-specific rights in the "Employee register" > "Employee management".
The Payroll accountant role (P) can manage all employees.
Without the Payroll accountant role (P), advances can be handled for those employees for whom the user has approval rights according to the company hierarchy.
Sales and purchase ledger rights must include the right to "Pay purchase invoices and salaries" to transfer the advance to payment.
Frequently asked questions
How do I handle a pay or travel advance?
Netvisor's pay and travel advances view (Payroll > Payroll > Pay and travel advances) manages and pays pay advances.
Are side costs calculated from pay advances?
No, they are not. When paying a pay advance in the Pay and travel advances section, payroll side costs are not calculated, and advances are net in the software.
Can the Pay advance salary type be manually added to the payslip?
No, it cannot. The default salary type "Pay advance" in the software cannot be manually added via the "add new salary type row" menu. It forms automatically when advances are handled in the Pay and travel advances function.
How is the pay advance reported to the income register?
If the Pay advance salary type has been defined with an income type, the report can be sent upon saving the advance. If no income type is defined, no earning payment report is formed.
How do I correct an incorrect pay advance balance?
If the balance is incorrect due to manual additions, you can correct it by adding a corresponding advance in the Pay and travel advances function and marking it as paid, or by letting the extra advance go through one payroll calculation and manually adjusting the payable amount.
For what purpose is the pay advance intended?
Pay and travel advances are used in situations where the employee receives part of the earned pay for use before the actual agreed salary payment date, which is then deducted from the next pay to be paid.
Keywords: pay advance, travel advance, payroll, income register, advance balance
*This article has been translated using an AI-based translation tool. The contents or wording of these instructions may differ from those in other instructions or in the software.
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