Payment of Advance (Purchase/Expenses).

Employee Advances will be paid by the Accounts Department based on the requisition or recommendation of the respective departmental head. The respective departmental head will give the approval. Based on the approval the Cashier (Accounts Department) will release the payment. The information will be recorded at employee level. Thepaymentwills be released in cash/Check. The following entry will be passed at the concerned location

Where advance is released .

Employee Advance Account (App Special GL Indicator) DR

To Cash Account/Bank A/c CR

Receivable Special Indicator

Special GL indicator used to separately track the balance from the normal balance. This procedure involves defining of alternative reconciliation accounts for each GL indicator. Following are the Receivable Special indicator for AL-NUKALY:

A = Advance from customer

C = Customer Credit (discount)

B = Provision for Bad debt

Advance payment from customer

Advances from customer are accounted in a separate general ledger through special GL.