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 add an advance draft to an employee:
- Navigate to the Main Menu > Employee and search for the employee.
- Double-click the employee's row to open the Employee Summary.
- From the Employee Summary, select Advance Draft option from the Actions menu 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 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 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 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.