This guide covers the management, payment, handling from the perspective of the income register, deduction on the payslip, and correction of errors related to pay and travel advances.

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General about pay advances

Netvisor's Pay and travel advances function manages and pays pay and travel advances. This user guide explains pay advances and their handling and correction 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 current 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 settings of the Pay advance salary type. 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 the Pay advance salary type has been given an income type allocation 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.

  1. Click the "Add new pay or travel advance" function.
  2. Select the employee and the type of advance from the opened view.
  3. Enter the due date (current day or a future date).
  4. Enter the amount to be paid and an optional specification.
  5. 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.
  6. 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 as 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.

  1. Click the "Add new pay or travel advance" function.
  2. Select the employee and the type of advance from the opened view.
  3. Enter the due date (current day or a future date).
  4. Enter the amount to be paid and an optional specification.
  5. 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.

When the payslip is generated and the pay advance row is 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 are usually 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:

  1. Add an advance of the same amount as the row formed on the payslip to the employee in the Pay and travel advances function.
  2. Mark the pay advance as paid.
  3. Delete the formed payslip and recreate it after saving. The advance will no longer form on the payslip.
  4. 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 salary)

This means that more pay advances have been added to Netvisor than have been deducted.

Correct the situation as follows:

  1. Let the program handle the advance through one payroll calculation to zero out the advance situation.
  2. 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.
  3. 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.

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

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.

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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