# Cash Advance Request

<p class="doc-lead">Cash Advance Request is the pre-approval step for employee cash advances and loans. Employees (or HR) raise a request with the amount and monthly repayment instalment; managers approve it on web or via bulk approve on the Cash Advance Request Report. Approved requests do <b>not</b> appear in pay run directly — disbursement happens through a <a href="#/payroll/cash-advance-voucher">Cash Advance Voucher</a>, which then auto-pulls repayments into pay run as deduction category 1.</p>

<div class="doc-toc">
<p class="doc-toc-title">On this page</p>
<div class="doc-toc-section">
<span class="doc-toc-group-title">Getting started</span>
<div class="doc-toc-links">
<a href="#/payroll/cash-advance-request?id=overview">Overview &amp; List View</a>
<a href="#/payroll/cash-advance-request?id=quick-start">Quick Start</a>
<a href="#/payroll/cash-advance-request?id=flow">End-to-End Flow</a>
</div>
</div>
<div class="doc-toc-section">
<span class="doc-toc-group-title">Form reference</span>
<div class="doc-toc-links">
<a href="#/payroll/cash-advance-request?id=header-fields">Header Fields</a>
</div>
</div>
<div class="doc-toc-section">
<span class="doc-toc-group-title">More</span>
<div class="doc-toc-links">
<a href="#/payroll/cash-advance-request?id=actions-status">Actions &amp; Status</a>
<a href="#/payroll/cash-advance-request?id=pay-run">Connection with Pay Run</a>
<a href="#/payroll/cash-advance-request?id=accounting">Accounting Postings</a>
<a href="#/payroll/cash-advance-request?id=example">Worked Example</a>
<a href="#/payroll/cash-advance-request?id=best-practices">Best Practices</a>
<a href="#/payroll/cash-advance-request?id=faq">FAQ</a>
<a href="#/payroll/cash-advance-request?id=related">Related Topics</a>
</div>
</div>
</div>

<hr class="doc-section-divider">

<h2 id="overview">Overview &amp; List View</h2>

Go to <b>Payroll → Cash Advance Request</b>. The list shows every advance or loan request with category, amount, monthly deduction, and approval status.

<img src="payroll/images/cashadvlist.webp" alt="Cash Advance Request List" loading="lazy">

<b>List columns</b>

| **Column** | **Shows** |
|------------|-----------|
| Id | System reference number. |
| Date | Request date and time. |
| Employee | Employee who submitted the request. |
| Category | Cash Advance or Loan. |
| Amount | Total requested amount. |
| Monthly Deduction | Instalment amount to deduct from each pay run (<code>paymentAmount</code>). |
| Status | Draft, Approved, Closed, Declined, or Cancelled. |

<b>Quick filter tabs</b>

| **Tab** | **Shows** |
|---------|-----------|
| Default | All except cancelled. |
| Approved | Approved requests ready for disbursement. |
| Draft | Saved but not yet approved. |
| Closed | Fully disbursed and settled through vouchers. |
| Declined | Rejected requests. |
| Cancelled | Cancelled requests. |

<b>Advanced Filters</b>

Id, Employee, Branch, Brand, Status, Date, and Created date.

<b>List row actions</b>

| **Action** | **Available when status is** |
|------------|------------------------------|
| Edit | Draft |
| Delete | Draft |
| View | All statuses |

<b>Bulk approve</b>

Use the <a href="#/payroll/reports/cash-advance-request-report">Cash Advance Request Report</a> to select multiple draft requests and click <b>Approve Cash Advance Request</b>. Requires <b>Cash Advance Request — Approve</b> access. Mobile requests created in the <a href="#/field-sale-app/hr-and-payroll">Field Sale App</a> can be approved in bulk from this report on web.

<img src="payroll/images/cash-adv-req-checkbox.webp" alt="Cash Advance request bulk approve" loading="lazy">

<hr class="doc-section-divider">

<h2 id="quick-start">Quick Start — Create a Cash Advance Request</h2>

<h3>1. Navigate</h3>
Go to <b>Payroll → Cash Advance Request</b> and click <b>New</b>.

<img src="payroll/images/newcashadvreq.webp" alt="New Cash Advance Request" loading="lazy">

<h3>2. Fill in details</h3>
<ul>
<li>Set the <b>Date</b> and select the <b>Employee *</b>.</li>
<li>Choose <b>Category *</b> — <b>Cash Advance</b> or <b>Loan</b>.</li>
<li>Enter <b>Amount *</b> — total advance or loan requested.</li>
<li>Enter <b>Deduction amount from each payrun *</b> (<code>paymentAmount</code>) — monthly instalment for repayment. Defaults to the full amount when amount changes; must be ≤ amount.</li>
<li>Optionally add <b>Notes</b>, <b>Branch</b>, and <b>Brand</b>.</li>
</ul>

<h3>3. Save or approve</h3>
<ul>
<li><b>Save</b> — keeps status Draft for review.</li>
<li><b>Save And Approve</b> — approves in one step (no journal; no cash movement yet).</li>
<li><b>Reset</b> / <b>Cancel</b> — clears or closes the form without saving.</li>
</ul>

<h3>4. Disburse via voucher</h3>
Open the approved request and use the <b>Pay</b> action (⋮ menu) to create a <a href="#/payroll/cash-advance-voucher">Cash Advance Voucher</a>. Cash is paid only when the voucher is approved.

<hr class="doc-section-divider">

<h2 id="flow">End-to-End Flow</h2>

<div class="doc-workflow">
  <div class="doc-workflow-step">
    <strong>Cash Advance Request</strong>
    <span class="doc-workflow-detail">Draft — amount and monthly deduction entered</span>
  </div>
  <div class="doc-workflow-arrow" aria-hidden="true">→</div>
  <div class="doc-workflow-step">
    <strong>Approved Request</strong>
    <span class="doc-workflow-detail">Approve — no accounting entry yet</span>
  </div>
  <div class="doc-workflow-arrow" aria-hidden="true">→</div>
  <div class="doc-workflow-step">
    <strong><a href="#/payroll/cash-advance-voucher">Cash Advance Voucher</a></strong>
    <span class="doc-workflow-detail">Pay action from approved request</span>
  </div>
  <div class="doc-workflow-arrow" aria-hidden="true">→</div>
  <div class="doc-workflow-step">
    <strong>Employee receives cash</strong>
    <span class="doc-workflow-detail">Approve voucher — cash disbursed (DR 14 / CR cash)</span>
  </div>
  <div class="doc-workflow-arrow" aria-hidden="true">→</div>
  <div class="doc-workflow-step">
    <strong><a href="#/payroll/pay-run">Pay Run</a></strong>
    <span class="doc-workflow-detail">Voucher auto-pulls as deduction each period</span>
  </div>
  <div class="doc-workflow-arrow" aria-hidden="true">→</div>
  <div class="doc-workflow-step">
    <strong>Salary deducted each month</strong>
    <span class="doc-workflow-detail">Deduction category 1 — min(balance, paymentAmount)</span>
  </div>
</div>

| **Step** | **Document** | **What happens** |
|----------|--------------|------------------|
| 1 | Cash Advance Request (Draft) | Employee or HR enters amount and monthly deduction. |
| 2 | Approve request | Status → Approved. No accounting entry. |
| 3 | Cash Advance Voucher | Created from <b>Pay</b> on request or from report bulk voucher creation. |
| 4 | Approve voucher | Cash disbursed — DR 14 / CR cash. Balance set to advance amount. |
| 5 | Pay Run | Voucher auto-pulls as deduction — amount = min(balance, paymentAmount). |
| 6 | Closed | Voucher balance = 0; request status → Closed. |

<hr class="doc-section-divider">

<h2 id="header-fields">Header Fields Reference</h2>

| **Field** | **Description** |
|-----------|-----------------|
| Date * | Date and time of the request. |
| Employee * | Employee requesting the advance or loan. Active HRMS employees only. |
| Category * | <b>Cash Advance</b> (0) or <b>Loan</b> (1). |
| Amount * | Total amount requested. |
| Deduction amount from each payrun * | Monthly instalment (<code>paymentAmount</code>) deducted through pay run after voucher disbursement. Must be ≤ Amount. |
| Notes | Purpose or remarks (e.g. festival advance, medical emergency). |
| Branch | Employee branch. Defaults from context when branch access is enabled. |
| Brand | Optional brand tagging. |

> This document is approval-only. It does not post journals and does not appear on pay run. Disbursement and recovery happen on the linked <a href="#/payroll/cash-advance-voucher">Cash Advance Voucher</a>.

<hr class="doc-section-divider">

<h2 id="actions-status">Actions &amp; Status</h2>

<img src="payroll/images/cashadvview.webp" alt="Cash Advance Request View" loading="lazy">

<h3>View toolbar actions</h3>

| **Action** | **Description** | **Available when status is** |
|------------|-----------------|------------------------------|
| Approve | Approves the request for disbursement. | Draft |
| Edit | Opens the request for editing. | Draft |
| Delete | Permanently removes the request. | Draft |
| Clone | Creates a copy of the request. | All (if permitted) |
| Print | Prints the request. | All |

<h3>More menu (⋮) actions</h3>

| **Action** | **Description** | **Available when status is** |
|------------|-----------------|------------------------------|
| Decline | Rejects the request (status Declined). | Draft |
| Pay | Opens a new <a href="#/payroll/cash-advance-voucher">Cash Advance Voucher</a> pre-filled from this request. | Approved |
| Cancel | Cancels the request. | Approved, Closed |
| Master Update | Updates selected header fields. | Approved, Closed |
| Add/Update Note | Adds or edits a note. | All |

<h3>Statuses</h3>

| **Status** | **Description** |
|------------|-----------------|
| Draft | Saved, awaiting approval. Editable. |
| Approved | Ready for voucher disbursement. No cash paid yet. |
| Closed | Linked voucher fully recovered. |
| Declined | Request rejected. |
| Cancelled | Request cancelled. |

<hr class="doc-section-divider">

<h2 id="pay-run">Connection with Pay Run</h2>

Cash Advance Requests do <b>not</b> appear in pay run.

| **Document** | **Appears in pay run?** | **Deduction category** |
|--------------|-------------------------|------------------------|
| Cash Advance Request | No | — |
| <a href="#/payroll/cash-advance-voucher">Cash Advance Voucher</a> | Yes | Cash Advance (1) |

After a voucher is approved and cash is disbursed, each pay run for that employee auto-pulls the voucher as a deduction line. Deduction amount = <b>min(balance, paymentAmount)</b> — the lesser of outstanding balance and the monthly instalment set on the request/voucher.

<hr class="doc-section-divider">

<h2 id="accounting">Accounting Postings</h2>

<p>Cash Advance Request approval does <b>not</b> create any journal entry. Accounting happens on the linked voucher and pay run:</p>

<h3>On cash advance voucher approve (disbursement)</h3>
<ul>
<li><b>DR</b> account 14 — Short-Term Loans / Employee Receivable</li>
<li><b>CR</b> cash account — Paid From account selected on the voucher</li>
</ul>

<p>For opening-balance vouchers (<b>Is Opening</b> checked), <b>CR account 56</b> instead of cash — used when migrating existing advance balances without a cash payment.</p>

<h3>On pay run approve (repayment deduction)</h3>
<ul>
<li><b>DR</b> account 57 — Salary Payable</li>
<li><b>CR</b> account 14 — Short-Term Loans / Employee Receivable</li>
</ul>

<hr class="doc-section-divider">

<h2 id="example">Worked Example — Festival Cash Advance</h2>

<p><b>Scenario:</b> Employee Priya requests ₹10,000 festival advance, repayable at ₹2,000 per month over five pay runs.</p>

<b>Step 1 — Request (web or mobile)</b>
<ul>
<li>Category: Cash Advance</li>
<li>Amount: ₹10,000</li>
<li>Deduction amount from each payrun: ₹2,000</li>
</ul>

<b>Step 2 — Approve</b><br>
HR approves on web, or bulk-approves from the <a href="#/payroll/reports/cash-advance-request-report">Cash Advance Request Report</a>.

<b>Step 3 — Voucher</b><br>
Open request → <b>Pay</b> → Cash Advance Voucher pre-filled. Paid From: Petty Cash. Approve voucher.<br>
Journal: <b>DR 14 ₹10,000 / CR Petty Cash ₹10,000</b>.

<b>Step 4 — Pay runs (5 months)</b><br>
Each pay run deducts min(₹10,000, ₹2,000) = ₹2,000. After five approvals, voucher balance = ₹0, request → Closed.

<hr class="doc-section-divider">

<h2 id="best-practices">Best Practices</h2>

<ul>
<li>Set a realistic <b>Deduction amount from each payrun</b> so repayment fits within the employee's net pay.</li>
<li>Use <b>Loan</b> category for longer-term recoveries and <b>Cash Advance</b> for short-term needs — both follow the same voucher and pay-run recovery path.</li>
<li>Approve requests promptly so finance can disburse via voucher before the employee needs the cash.</li>
<li>Use bulk approve on the <a href="#/payroll/reports/cash-advance-request-report">Cash Advance Request Report</a> after field staff submit requests from the <a href="#/field-sale-app/hr-and-payroll">Field Sale App</a>.</li>
<li>Do not skip the voucher step — approving a request alone does not pay the employee or create a recoverable balance.</li>
</ul>

<hr class="doc-section-divider">

<h2 id="faq">FAQ</h2>

<b>Does an approved request pay the employee?</b><br>
No. Cash is paid only when a linked <a href="#/payroll/cash-advance-voucher">Cash Advance Voucher</a> is approved.

<b>Why doesn't my request appear on pay run?</b><br>
Requests are pre-approval only. Pay run pulls the voucher, not the request.

<b>Can employees create requests on mobile?</b><br>
Yes — via <b>More → Cash Advance Request</b> in the <a href="#/field-sale-app/hr-and-payroll">Field Sale App</a>. Web users approve and disburse.

<b>What is the difference between Cash Advance and Loan category?</b><br>
Both use the same workflow. The category labels the request for reporting; recovery mechanics are identical.

<b>Can I bulk-create vouchers from approved requests?</b><br>
Yes. On the <a href="#/payroll/reports/cash-advance-request-report">Cash Advance Request Report</a>, select approved requests and create vouchers in batch.

<b>What happens when I decline a request?</b><br>
Status moves to Declined. No voucher can be created until a new request is raised.

<b>Can I edit an approved request?</b><br>
No. Decline or cancel workflow if amount is wrong, then submit a new request for approval.

<b>Does approving a request create accounting entries?</b><br>
No. Only an approved <a href="#/payroll/cash-advance-voucher">Cash Advance Voucher</a> posts disbursement and employee receivable.

<b>Can managers bulk-approve from the list?</b><br>
Yes when permitted — same validation as single approve. Use the report for batch approve and voucher creation.

<b>What is the maximum request amount?</b><br>
No system-wide cap unless enforced by workflow or custom validation — business policy may require approval tiers.

<hr class="doc-section-divider">

<h2 id="related">Related Topics</h2>

<ul>
<li><a href="#/payroll/pay-run-dashboard">Pay Run Dashboard</a> — Pending Advance Requests opens this list with status Approved.</li>
<li><a href="#/payroll/cash-advance-voucher">Cash Advance Voucher</a> — disbursement and pay-run recovery.</li>
<li><a href="#/payroll/pay-run">Pay Run</a> — deducts voucher balance each period (category 1).</li>
<li><a href="#/payroll/reports/cash-advance-request-report">Cash Advance Request Report</a> — bulk approve and bulk voucher creation.</li>
<li><a href="#/field-sale-app/hr-and-payroll">Field Sale App — HR &amp; Payroll</a> — mobile request creation.</li>
<li><a href="#/payroll/deduction-on-expense">Deduction on Expense</a> — recover company-paid costs (category 2).</li>
</ul>