Advances
Advances Management
An advance is an amount requested by an employee in advance and is later deducted from their salary in one payment or over several months according to company policy.
This section in the system facilitates:
- Submitting an advance request: By the employee easily
- Reviewing the request by management or HR: To make the appropriate decision
- Approving or rejecting the advance: Based on company policies
- Automatic deduction from salaries: Without manual intervention
- Tracking paid and remaining advances: To monitor financial status
Second: Importance of Advances System
Having the system solves many problems such as:
1. Official Documentation of All Advances
All advance requests are recorded and documented in the system.
2. Prevent Errors or Forgetting Deductions
The system ensures no advance is forgotten in deductions.
3. Automatic Linking of Advance to Salary Without Manual Intervention
Deduction occurs automatically when preparing salary.
4. Ability to Monitor Advances Owed by Each Employee
Know total advances owed and remaining.
5. Speed in Approval and Rejection Instead of Paperwork
Fast and transparent process.
Use the advances system regularly to ensure accurate documentation and fair deduction of all advances.
Third: Steps to Submit an Advance Request (From Employee)
When the employee opens the advances page, they will find a "New Advance Request" button.
Step 1: Enter Amount
The employee writes the requested advance amount.
Example: 2000 EGP
Make sure the amount does not exceed the allowed limit according to company policy.
Step 2: Specify Advance Reason
Writes the reason such as:
- Emergency circumstances
- Medical expenses
- Personal needs
Writing a clear and detailed reason helps speed up the review and approval process.
Step 3: Choose Payment Method
There are two types:
- Full deduction from first salary: One-time payment
- Installment over several months: (If system supports it) Payment in installments
Choosing the appropriate payment method helps in personal budget planning.
Step 4: Submit Request
The request appears in the management panel for review.
After submitting the request, you can track its status from your advances page.
Fourth: How to Review Request from Management
In the advances management page, all requests appear with their status:
Request Statuses:
- Under Review: Request is new and needs review
- Approved: Request has been approved
- Rejected: Request has been rejected
- Fully Paid: Advance has been fully paid
When clicking on any request, its full details appear.
Reviewing request details helps make a correct and informed decision.
Fifth: Approve or Reject Request
When opening advance details, options appear:
Approve Request
When clicking approve:
- Advance is set as "Approved"
- It is prepared for automatic deduction from next salary
- Employee receives a notification
When approving, make sure the employee has sufficient balance in the next salary to cover the advance.
Reject Request
When clicking reject:
- A box appears to enter rejection reason
- Employee receives a notification with rejection reason
- Request is closed
Examples of Rejection Reasons:
- Advance exceeds allowed limit
- Previous advance not yet paid
- Amount not appropriate for company policy
When rejecting, make sure to write a clear reason to help the employee understand the decision.
Sixth: Deducting Advance from Salary
After approving the advance, the system works automatically:
Automatic Process:
- Links advance to next salary: Preparation for deduction
- Deducts amount from total due: Automatic calculation
- Appears in "Payroll Sheets": Clear item named "Advance"
If Advance is in Installments:
- Each installment is automatically deducted on its due date
- Remaining amount decreases each month until it becomes zero
Automatic deduction ensures calculation accuracy and prevents forgetting any advance.
Seventh: Tracking Advances After Deduction
The advances page displays:
Displayed Information:
- Active Advances: Advances not yet fully paid
- Paid Advances: Advances that have been fully paid
- Rejected Advances: Rejected requests
- Monthly Deduction Details: Tracking deductions
Also Appears for Each Employee:
- Total Advances Owed: Total amount owed
- Remaining After Deduction: Remaining amount to be deducted
- Final Payment Date: When the advance will be fully paid
Monitor owed advances regularly to plan your personal budget and avoid debt accumulation.
Eighth: Complete Example of Advance Request
1. Employee Requests:
- Amount: 1500 EGP
- Reason: "Medical expenses"
- Payment: Full deduction from January salary
2. HR Reviews Request
Opens details then clicks "Approve"
3. When Preparing January Salary
System calculates:
Base Salary – 1500 = Due Salary
4. Advance is Automatically Deducted
And advance status changes to "Paid"
This example shows a complete lifecycle of an advance request from start to payment.
Ninth: Advance Policies
1. Maximum Advance Limit
The company may set a maximum limit for the amount allowed as an advance.
2. Number of Concurrent Advances
There may be restrictions on the number of advances an employee can have at the same time.
3. Payment Period
The company may set a specific payment period (one month, two months, etc.).
4. Approval Conditions
Some companies may require additional approval for large amounts.
Make sure to understand company policies related to advances before submitting a request to avoid rejection.
Tenth: Integration with Other Systems
The advances system integrates with:
1. Payroll System
Automatic deduction from monthly salary.
2. Notifications System
Sending notifications to employee upon approval or rejection.
3. Financial Reports System
Generating reports on owed and paid advances.
4. Employees System
Linking advances to employee financial record.
Integration with other systems ensures smooth information flow and calculation accuracy.
Section Summary
The advances section provides an accurate and easy process for managing advances within the company from the moment of request submission until final deduction from salary, with complete documentation and clear record for each employee. The system ensures fairness and accuracy in financial transactions, protecting both employee and company rights.