Paying Employee's Advance (Like middle of the month)


In the country where i work, employee’s sometimes can choose to get a little bit of money half way through the month to help them get through the month. For example if their package is 50.000 INR, hey can opt to recieve 5.000 INR on the 15th of each month.

Accounting wise this should lead to a payment in the middle of the month, and then at the end of the month that amount paid should be deducted to avoid paying for it twice.

Looking through Frappe HR, I concluded there is no straightforward way of doing this. As Advance payments are linked to employee travel expenses which isn’t the case here.

So my though it, what if I made a journal entry for payment for each employee. Would that payment automatically be deducted when HR module calculates the amount paid off? Is there an easier way to handle this case scenario?

I believe employee advance and deduction of that advance from the salary is the only way to do.

You don’t need to use expense claims, just create an employee advance with the “Repay Unclaimed Amount From Salary” checkbox checked. And after payment of the advance you will be able to see a “Deduction From Salary” option under create in Employee Advance.

There you can pick the component and payroll period and amount to be deducted.

Thanks @Void_Moon , i’ll give it a try and get back to you. just seems like something that i may have to do manually for each employee. but worth a try. Thanks,