How to create a Payroll Advance in Sage 100

• If you do not already have an Earnings Code for Payroll Advance, you may set up a new Earnings Code, refer to KB Article 37651, DocLink: How to Setup Earnings Codes. You will need to determine if this is to be paid back (as in “loan”) or if this is a true advance and not to be paid back. If the latter, you will need to set up Payroll Advance with taxes.
• Select the appropriate Tax Rule: i.e., if the employee is paying it all back, like a loan, then no taxes would be taken out.
• If you do not already have a Deduction Code for Advance, you may set up a new Deduction Code, refer to KB Article 18879, DocLink: How to set up a Deduction Code.
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To create the Payroll Advance:

1. Open Payroll, Main, Payroll Data Entry – create a Pay Cycle
   1. Select Employee
   2. Go to Tab 2. Lines
   3. Select Earnings Code “Advance“
   4. Enter Hours if it doesn’t auto populate. Make sure Hours and Amount are correct.
   5. Accept
   6. Say No to Auto Deductions
   7. Run Payroll Tax Calculation
   8. Process Advance like you would normally process Payroll, printing any reports necessary, checking that no taxes were taken out.
   9. Print Check
   10. Update Check Register
   11. Update Daily Transaction Register.

To create the Auto Payroll Advance Repayment:

1. Open Payroll, Main, Employee Maintenance
2. Select Employee
3. Accept
4. Choose Tab 7. Deductions
5. Add Row by clicking on the ‘Add Deduction‘ icon on the right, or selecting Alt-U
6. Select Deduction Code “Advance“
7. Add Amount/Rate to be paid back per pay period
8. Add a Goal (Same amount as Advance)
9. Select Automatic for auto deductions each pay period
10. OK
11. Exit out of Deductions
12. Accept