An advance draft allows an employee to be paid a portion of their income prior to their work being completed. This is helpful in many circumstances, particularly for employees that need to obtain supplies for an assignment before they start (i.e., safety equipment, office attire, etc.)
To display Advance Draft in the Employee Actions menu, enable the config option emp_AdvanceDraft.
Add an Advance Draft
- Navigate to Main Menu > Employee and search for the employee.
- Double-click the employee's row to open the Employee Summary.
- From the Employee Summary's Actions menu, select Advance Draft or click the Advance Draft button if it is enabled in the Shortcuts group. This displays the Advance Draft tab.
- Search for the employee you're applying the advance draft to (if different from the defaulted employee) from the Employee Lookup group.
- Populate the fields according to these definitions:
Field Description Draft Amount Amount of this advance draft. Draft Installment The number of installments scheduled for the employee to repay this advance draft. Draft Processing Fee Amount of the processing fee added to each repayment. Similar to loan interest. Processing Fee Installments The number of times the processing fee will be applied to repayments.
The employee will pay back the advance on future checks based on the installment plan set up in the Draft Info section of the window. In the example above, $500 is being advanced to the employee. The employee will pay back the $500 over 10 Draft Installments (repayments) that will include a Processing Fee Installment (loan interest) of $1.50 each time. The employee will pay back $51.50 over the next 10 paychecks.
Depending on the application version, these fields may not be editable once the Advance Draft process has been applied.
- Select the assignment for this employee from the Assignments group drop-down menu. This menu will display all active assignments for the employee.
- Once you've selected the assignment for your employee the values in the grid of the Assignments tab will automatically generate. Click Finish to save your data entry.
- A message will confirm that the advance draft transaction is associated with a new Time Entry batch.
- The Time Entry and Payroll process will function as usual.
- Click OK. The process will save and the screen will return to the Employee section.
- To run the Advance Draft batch, navigate to Time Entry in the Main Menu's Back Office section.
- Search for the transaction by Batch ID in the drop-down menu.
- Select the transaction.
- Click Sheet View.
- Search for the employee receiving the advance draft.
- Complete time entry and payroll as usual. The Advance Pay Back employee deduction is automatically created once a payroll batch has been posted.