Apply Cash Advance to an Expense Report.
Apply Cash Advance
If you have used the Cash Advance to pay for an Expense, you can apply it towards the expense while editing your Expense.
You can do so by selecting the relevant Expense Report first, then click on the Expense to which you wish to apply the Cash Advance.
Once you have the Expense screen opened, go to the Payment Type field, and select the Paid with Cash Advance option.
When done, click on the Save icon to save it.
You will notice all the adjusted calculations in the upper part of the Expenses list.
To decipher the above Expense and applied Cash Advance we can read it as follows:
- The Cash Advance was released to the employee -$60: Employees owes the Company $60
- He spent the cash on the necessary Expense - $60: Employee does not owe the Company anything, but needs to report the Expense.
- He creates the Expense and the Expense Report for $60: Expense worth $60 documented.
- He mentions that this Expense was paid with the cash that the Company paid him $60 earlier (applied Cash Advance): Documenting the Cash Advance applied.
This way neither the Company or Employee owes each other, except documenting these events for record keeping.
In a situation where, the Employee paid more that the Expense amount, he will need to either return the cash back to the Company (Employee owes the remaining balance), or can apply this Cash Advance to a different Expense, as necessary.
In case where the Employee applied a cash advance amount less that the Expense amount, he will need to apply the Cash Advance as per the regular process. The remaining balance will be due:
- either to the Employee by the Company if the Employee paid for the rest out of pocket
- or by the Company if a corporate card was used to pay for the remaining balance to the financial institution.