Employee loans and cash advances
Record a loan, deduct it through payroll, and settle or write off what's left.
HR › Loans & Cash Advances tracks money employees owe, including SSS and Pag-IBIG loans that you deduct for them.
Add a loan
New Loan / Cash Advance:
- Employee and loan type (company cash advance, or an SSS or Pag-IBIG loan).
- Principal and Release date.
- Per payroll deduction amount and Start deducting from (a payroll period).
- Release from bank / cash account (optional): choose where the money came out, so it is booked.
- Reference and Description (optional).
Tick Don't record the release in the books only if the money was already recorded elsewhere. Check with your accountant first.
How it is repaid
Each payroll run takes the per payroll amount until the balance is zero. The loan page shows the balance, deducted so far and each payroll deduction.
Pay off or write off
Open the loan › Settle:
- Early payoff: the employee pays the balance in cash.
- Write-off: the company forgives the remaining balance.
Choose to post it to GoDoBooks so the journal entry is created. Use Void on a settlement if it was a mistake, and Cancel Loan for a loan that should not have started.
Note: SSS and Pag-IBIG loans are owed to the agency, not the company, so payoff and write-off don't apply to them.