Advances Edit MGFT

• Entering Advances
• Entering an Advance that will Create a Payment
• Amending an Advance
• Entering a Paid Advance
• Entering Advance Refunds
• Cancelling an Advance
• Matching Advances to Expense Claims

Entering Advances

The Advance screen MGFT lets you enter:

• Advances generating a payment (using a payment schedule)
• Advances already paid to an employee, such as cash advances or petty cash
• Advance refunds, such as returned advance money

You can amend or cancel advances and match advances to existing expense claims or refunds.

When you create an advance, any amount that is not allocated to a claim for that advance appears on the next payment schedule as a negative amount. This method ensures that the employee's expenses are not paid without accounting for outstanding advances.

To create an advance using a payment schedule, click the check box at Generate Payment on the Advance screen MGFT. Leaving this field blank indicates that you have already made the payment. You can attach this type of advance to a payment schedule in payment processing, reducing the amount paid on an expense claim. The advance appears in payment processing as a negative amount.

After you enter the advance, the system assigns a reference number to the advance.

If the advance requires a payment, the status is Awaiting Payment and the system issues the payment during the next automatic payment run. If you cancel an advance, the status is Cancelled.

You can generate foreign currency advances using the Advance screen MGFT but not multi-currency advances. You must create a separate advance for each currency.

Entering an Advance that will Create a Payment

1. Enter Company, if different to the default and Employee, System Reference or Advance Reference in the selection window and click Edit | Insert from the pull-down menu.
2. Enter the following fields on the Main format of the Advance screen MGFT:
   1. Enter an Employee code, up to twelve characters. The system displays the employee's name and first two address lines when you right click.
   2. Enter an Advance Reference number, up to 16 alphanumeric characters. The system checks the database for the same transaction reference for this employee. If recording an off-system advance, for example from petty cash or a handwritten cheque, enter the petty cash voucher number or cheque number. If you are adding an unpaid advance, enter an internal reference number.
   3. In Generate Payment, click the check box to generate payments automatically.
   4. If you are using ICA, enter an element that is associated with the employee. 
   5. In Advance Value, enter the payment value. This value can be negative if recording a refund or zero if recording bank charges. The default is zero.
   6. If desired, enter any optional fields. Fields on the Currency format are optional. Enter additional information on this format by clicking the Currency tab.

Click Update to enter the advance. If there are warnings, accept the warnings by clicking Warnings | Accept Warnings and clicking the Update button again.

Amending an Advance

1. Enter Company, if different to the default, in the selection window and either Employee, System Reference or Advance Reference and click OK.
2. Select the advance you want to amend and click Edit | Amend.
3. Enter changes on the Advance screen MGFT.
4. Click Update to accept the changes to the screen. If there are warnings, accept the warnings by clicking Warnings | Accept Warnings and clicking Update again.

Entering a Paid Advance

1. Double-click Accounts Payable Main Menu on the e5 Main Menu.
2. Double-click Expense Ledger Menu on the Accounts Payable Main Menu.
3. Double-click Advances on the Accounts Payable Expenses Menu.
4. Enter Company, if different to the default and Employee, System Reference or Advance Reference in the selection window and click Edit | Insert from the pull-down menu.
5. Enter the following fields on the Main format of the Advance screen MGFT:
   1. Enter an Employee code, up to twelve characters. The system displays the employee's name and first two address lines when you right click
   2. Enter an Advance Reference number, up to 16 alphanumeric characters. The system checks the database for the same transaction reference for this employee. If recording an off-system advance, for example from petty cash or a handwritten cheque, enter the petty cash voucher number or cheque number. If you are adding an unpaid advance, enter an internal reference number.
   3. In Advance Value, enter the payment value. This value can be negative if recording a refund or zero if recording bank charges. The default is zero.
6. Click Update to enter the advance. If there are warnings, accept the warnings by clicking Warnings | Accept Warnings.

Entering Advance Refunds

An employee might not use an entire advance. The employee returns the unused portion, which you then enter into the system. To enter an advance refund, follow the same steps as entering a paid advance. However, you must enter a negative amount for the Advance Value on the Advance screen MGFT. Also enter a negative amount in Gross Amount on the Advance Allocation screen MGFT.

Allocate the advance refund to the original advance to reduce the unallocated balance. You can enter a minus sign before or after the amount to record the negative amount.

If the advance value is less than the employee minimum payment value, a warning message appears. You can accept the warning by clicking Warnings | Accept Warnings.

Cancelling an Advance

You may need to cancel an advance after it is issued.

1. Double-click Accounts Payable Main Menu on the e5 Main Menu.
2. Double-click Expense Ledger Menu on the Accounts Payable Main Menu.
3. Double-click Advances on the Accounts Payable Expenses Menu.
4. Enter Company, if different to the default Employee in the selection window and click OK.
5. Select the advance you want to cancel and click Edit | Cancel.
6. Click Update on the Advance screen MGFT.

Matching Advances to Expense Claims

You can match advances to expense claims to assure that the employee receives the correct payment. When you match an advance to an expense claim, the status of the expense changes to Fully Paid or Partially Paid and the status of the advance changes to Fully Allocated or Partially Allocated. The status of advances and expense claims depends upon how much of the advance you allocate to the expense claim.

1. Double-click Accounts Payable Main Menu on the e5 Main Menu.
2. Double-click Expense Ledger Menu on the Accounts Payable Main Menu.
3. Double-click Advances on the Accounts Payable Expenses Menu.
4. Enter Company, if different to the default, in the selection window and either Employee, System Reference or Advance Reference and click OK.
5. Select the advance with which you want to match a claim and click Edit | Amend.
6. Click Allocation on the Advance screen MGFT to access the selection window.
7. Enter System Reference, Transaction Ref, From Entry Date or To Entry Date at the selection window and click the Fetch button to list the claims that matched your entry.
8. Select the expense claim with which you want to match an advance on the Advance Allocation screen MGFT and perform the following action(s) as necessary:

1. • Click Transaction | Pay if you are matching the entire amount.
   • If you are not matching the full amount, click Transaction | Amend Pay and then enter the value to be matched in Gross Advance beside each expense claim you want to match with the selected advance.
   • Click Transaction | No Pay to deselect a transaction.

The system displays an asterisk (*) beside each transaction you marked and displays Advance Value.

9. Click Update to accept the changes to the screen.

Screen Specific Actions (Header)

Screen Specific Actions (Allocation)

See also

Accounts Payable Advances List MGFS

Accounts Payable Home Page