Unclaimed Employee Advances

Hello. Want to ask, how can we remove the unclaimed employee advances in ERPnext if the expense claim related to the cash advance doesn’t use the full amount?

For example, I tried making an employee advance worth 5,000 and paying the same amount using the payment entry function. This is working perfectly. I tried using the expense claim but I only sanctioned 4,500 worth of expenses to test it out. I have 500 leftover and I noticed that I see no option to have it returned to my cash/bank account. So, I did the following:

  1. Make another expense claim to claim the remaining amount. This works because the remaining advance amount is used up and removes the “advances to employees” account balance and you can have the remaining expense claim paid, but if the employee doesn’t get another expense claim for a very long time, then company balances will include that figure, which is inaccurate. We require our employees to return the excess advances.
  2. Create journal entry. This fixes the account balance but then you still have the employee advance unclaimed amount when you create a new expense claim which creates problems.
  3. Try to create an expense claim type that directs it to a cash account. This doesn’t work for obvious reasons.

Either way, is there a way to return/remove/detach the excess cash advance to the particular employee so that it will go back to company? I’ve read a few topics but I didn’t really see the solution aside from the imprest accounts that might not suit our situation.

Thanks for the help.

Facing same issue.

Normally employee should refund the excess advance.

Payment entry to the rescue

Try it.


Hi, I am facing the same issue of unclaimed employee advances. Did you get a solution to fix this issue. Kindly help

Hello. Sadly no. There is no option to convert the unclaimed advances but I made a workaround. I am not sure if it will work for you but what I did instead is I made a separate expense account for unclaimed advances. I named it as “Advance Excess Allocation”. So every time there is an excess in our advances, I ask our people to input the above account instead so advances always end up as 0 or as fully claimed.

To me, this is also a good way to track how much excess from advances we actually have and we use it later on for further optimization. At the end of every week/month/quarter/year, depending on how often you want it updated, convert the advance allocation account back into cash through a journal entry.

The movement goes like

Advance Reimbursement
Dr Travel Expense
Dr Food Expense
Dr Gas Expense
Dr Advance Allocation
Cr Advances to Employees

Reversal of Advance Excess
Dr Cash
Cr Advance Allocation

This is a good idea but to simplify it, if there is a possibility to make JV for refund amount and select the unclaimed Emp. Advance entry number (currently it is only showing unpaid advances in the JV). In this way the Emp. Advance module also adjusted.