# Cash Advance Voucher
Cash Advance Voucher records the actual disbursement of an approved Cash Advance Request — or a standalone advance, loan, or opening balance. When approved, cash leaves the bank (DR 14 / CR cash) or posts against opening balance (CR 56). Approved vouchers with balance auto-pull into Pay Run as deduction category 1, deducting min(balance, paymentAmount) each period until fully recovered.
Overview & List View
Go to Payroll → Cash Advance Voucher. The list shows every disbursement with category, linked request, paid-from account, amount, balance, and status.
List columns
| **Column** | **Shows** |
|------------|-----------|
| Id | System reference number. |
| Number # | Voucher or bill number. |
| Date | Disbursement date and time. |
| Category | Cash Advance or Loan. |
| Advance request Id | Linked Cash Advance Request (if any). |
| Employee | Employee receiving the advance. |
| Monthly Deduction | Instalment per pay run (paymentAmount). |
| Paid from | Cash or bank account paid out. |
| Cash Advance Amount | Total disbursed amount. |
| Balance | Outstanding amount still to recover. |
| Status | Draft, Approved, Closed, or Cancelled. |
Quick filter tabs
| **Tab** | **Shows** |
|---------|-----------|
| Default | All except cancelled. |
| Approved | Approved vouchers with open or zero balance. |
| Draft | Saved but not yet approved. |
| Closed | Fully recovered (balance = 0). |
| Cancelled | Cancelled vouchers. |
Advanced Filters
Id, Category, Employee, Paid from, Advance request Id, Branch, Brand, Status, Date, and Created date.
List row actions
| **Action** | **Available when status is** |
|------------|------------------------------|
| Edit | Draft |
| Delete | Draft |
| View | All statuses |
Quick Start — Create a Cash Advance Voucher
1. Navigate
Go to Payroll → Cash Advance Voucher and click New, or open an approved request and choose Pay from the ⋮ menu.
2. Fill in details
- Set the Date. Link Cash Request Id when paying an approved request (auto-filled from Pay).
- Select Employee * and Category * (Cash Advance or Loan).
- Enter Cash Advance Amount * and Monthly Deduction * (
paymentAmount). Monthly deduction must be ≤ amount.
- Select Paid from — cash or bank account (not required when Is Opening is checked).
- Optionally add Voucher Number, Notes, Branch, and Brand.
3. Save or approve
- Save — keeps status Draft.
- Save And Approve — approves in one step, posts disbursement journal, sets balance = amount.
- Reset / Cancel — clears or closes the form without saving.
4. Recover through pay run
Each pay run for the employee auto-pulls this voucher as a deduction (category 1). Amount deducted = min(balance, paymentAmount). Voucher closes when balance reaches zero.
| **Field** | **Description** |
|-----------|-----------------|
| Date * | Date and time of disbursement. |
| Cash Request Id | Linked approved Cash Advance Request. Use the lookup button to pick an approved request. Auto-filled when created via Pay. |
| Employee * | Employee receiving the advance. Active HRMS employees only. |
| Is Opening | When checked, marks an opening-balance advance (no cash payment). Paid from is disabled; journal CR goes to account 56. |
| Category * | Cash Advance (0) or Loan (1). |
| Cash Advance Amount * | Total amount disbursed or opening balance. |
| Monthly Deduction * | Instalment deducted each pay run (paymentAmount). Must be ≤ Cash Advance Amount. Defaults to full amount when amount changes. |
| Voucher Number | Bill reference. Auto-generated when bill-number series is configured. |
| Paid from | Cash or bank account paid out. Required unless Is Opening is checked. |
| Notes | Purpose or remarks. |
| Branch | Branch associated with the employee. Defaults from context when branch access is enabled. |
| Brand | Optional brand tagging. |
| Overtime Entry ID | Shown on view when the voucher was created from an approved Overtime Entry via Pay — links OT payout as a cash advance for recovery through pay run. |
> Vouchers can also be created in bulk from the Cash Advance Request Report (multi-voucher screen with shared date and paid-from account).
Actions & Status
View toolbar actions
| **Action** | **Description** | **Available when status is** |
|------------|-----------------|------------------------------|
| Approve | Posts disbursement journal and sets balance. | Draft |
| Edit | Opens the voucher for editing. | Draft |
| Delete | Permanently removes the voucher. | Draft |
| Clone | Creates a copy of the voucher. | All (if permitted) |
| Print | Prints the voucher. | All |
More menu (⋮) actions
| **Action** | **Description** | **Available when status is** |
|------------|-----------------|------------------------------|
| Payment In | Creates a Receipt Voucher for direct employee repayment outside pay run. | Approved |
| Cancel | Cancels the voucher and reverses its journal. | Approved, Closed |
| Master Update | Updates selected header fields. | Approved, Closed |
| Add/Update Note | Adds or edits a note. | All |
Statuses
| **Status** | **Description** |
|------------|-----------------|
| Draft | Saved but not approved. No cash movement. |
| Approved | Cash disbursed (or opening posted). Balance tracks amount owed. |
| Closed | Fully recovered — balance is zero. |
| Cancelled | Cancelled and journal reversed. |
Connection with Pay Run
Approved Cash Advance Vouchers with balance > 0 auto-pull into the employee's Pay Run Deductions section.
| **Setting** | **Value** |
|-------------|-----------|
| Deduction category | Cash Advance (1) |
| Auto-pulled amount | min(balance, paymentAmount) |
| When settled | Pay run approve reduces balance; voucher closes when balance = 0 |
Multiple open vouchers for the same employee each pull separately. Pay run import distributes manual deduction columns across pending vouchers (oldest first).
Alternate recovery — Receipt Voucher
Use Payment In on an approved voucher to create a Receipt Voucher. Employee pays cash or cheque directly to the company. Balance decreases without waiting for the next pay run. Useful for early settlement or partial repayment.
Accounting Postings
On voucher approve — normal disbursement
- DR account 14 — Short-Term Loans / Employee Receivable
- CR Paid from — cash or bank account selected on the voucher
On voucher approve — opening balance (Is Opening)
Used when migrating existing employee advance balances at go-live:
- DR account 14 — Short-Term Loans / Employee Receivable
- CR account 56 — Opening Balance / Equity adjustment account
No cash leaves the company. Recovery still happens through pay run deductions.
On pay run approve (repayment deduction)
- DR account 57 — Salary Payable (employee sub-ledger)
- CR account 14 — Short-Term Loans / Employee Receivable
On receipt voucher (direct repayment)
When employee repays outside payroll via Payment In:
- DR cash or bank account
- CR account 14 — reduces voucher balance
Cancel on voucher or pay run reverses the respective journals and restores balance.
Worked Example — Loan with Monthly Instalments
Scenario: Employee Kumar receives a ₹24,000 personal loan, repayable at ₹4,000 per month over six pay runs.
Step 1 — Request and approve
Step 2 — Voucher
- Created via Pay on the approved request
- Paid from: Main Bank Account
- Approve voucher
Journal: DR 14 ₹24,000 / CR Main Bank ₹24,000. Balance = ₹24,000.
Step 3 — Pay runs (months 1–6)
| **Month** | **Balance before** | **Deduction (min)** | **Balance after** |
|-----------|-------------------|---------------------|-------------------|
| 1 | ₹24,000 | ₹4,000 | ₹20,000 |
| 2 | ₹20,000 | ₹4,000 | ₹16,000 |
| 3 | ₹16,000 | ₹4,000 | ₹12,000 |
| 4 | ₹12,000 | ₹4,000 | ₹8,000 |
| 5 | ₹8,000 | ₹4,000 | ₹4,000 |
| 6 | ₹4,000 | ₹4,000 | ₹0 → Closed |
Each pay run journal: DR 57 / CR 14 for the deducted amount.
OT-linked variant: When overtime is paid as recoverable advance, create the voucher from an approved Overtime Entry via Pay. Amount and monthly deduction default from the OT balance. Recovery follows the same pay-run deduction path.
Best Practices
- Always link vouchers to an approved Cash Advance Request when one exists — this preserves the approval trail.
- Set Monthly Deduction at or below expected net pay so deductions do not exceed take-home salary.
- Use Is Opening only for migrated balances at implementation — not for new cash payments.
- Review auto-pulled deduction lines on each pay run before approving.
- Use Payment In (Receipt Voucher) when an employee wants to settle early or make a partial cash repayment.
- For bulk festival advances, create vouchers from the Cash Advance Request Report multi-voucher screen.
FAQ
Can I create a voucher without a request?
Yes. Enter employee, category, amount, and paid-from directly on a new voucher. Linking a request is recommended for audit control.
Why is Paid from disabled?
Is Opening is checked — the voucher posts against account 56 instead of a cash account.
How is the pay run deduction amount calculated?
min(balance, paymentAmount). On the last instalment, balance may be less than paymentAmount — the system deducts the remaining balance only.
Can one request have multiple vouchers?
Typically one voucher per approved request. Partial disbursements require separate business process or manual voucher entry.
What is the Overtime Entry ID on the voucher view?
The voucher was created from an approved overtime entry's Pay action. OT amount is advanced to the employee and recovered through pay run like any cash advance.
Does cancelling a pay run restore voucher balance?
Yes. Pay run cancel reverses deduction journals and restores the voucher balance for future recovery.
What is Is Opening on a cash advance voucher?
Opening balance advances post against employee advance account (56) instead of a cash/bank Paid from account — used for migrated balances.
Can I recover more than one voucher on a pay run?
Yes. Pay run auto-pulls all open vouchers for the employee — each appears as a separate deduction line under category 1.
Why is voucher status Partially Paid?
Some balance was recovered on an approved pay run or receipt voucher — remaining balance is still deductible on future runs.
Does approving a voucher pay the employee immediately?
Yes when Paid from is a cash/bank account — the payment voucher or cash posting disburses funds. Recovery happens later on pay run.