Produce an Employee Advance Through Payroll

Click on Accounting > New Transaction.

Select an asset account (e.g. 1095 - Advance to an Employee) and set it as non-taxable.

• Make a deposit or a cheque.
• Create a general ledger entry.
• In the Reference field, enter the employee's name and optionally the payroll number.
• Add a Tag: this allows you to track advances by employee using a single GL code. Otherwise, create a separate advance GL account for each employee.
• Enter the transaction.

Click on Save and Close.

Advance Transaction Validation

Go to Accounting > Reports > Balance sheet. 

In the Balance sheet window, click on Send.

The advance should appear in the balance sheet as an asset, as shown below :