The Advance Pay process enables you to pay employees in advance for holidays or other events. The process performs payroll runs for the periods to be advanced, using all date effective information in place, and stores the final net figure as the amount to be advanced.
You can always represent Advance Pay as a single consolidated amount. However, if your legislation has the Advance Pay by Element process enabled, then you can also calculate and display the total amount of Advance Pay for constituent elements in the overall total.
Note: If you do have the choice of using both the Advance Pay process and the Advance Pay by Element process you should note that these processes cannot be overlapped, That is you cannot:
Run Advance Pay for a period to which Advance Pay by Element has already been applied.
Run Advance Pay by Element for a period to which Advance Pay has already been applied.
The advance pay period is the period of the holiday or event for which the advance payment is being made. More accurately, it is the total number of payroll periods covering the event. Regular payroll processing continues for the employee during the advance pay period. The amount advanced is progressively recovered in each regular payroll run, and the following actions are also carried out as appropriate:
If further payments become due to the employee during the advance pay period, these can be paid using the employee's normal payment method. Alternatively, the net payment can be deferred and paid to the employee in the period following the advance pay period.
If the employee's entitlement during the advance pay period becomes less than the sum advanced, thereby creating an overpayment, the amount owing is recovered automatically in the pay period following the advance pay period.
You can make advance payments for any pay period types, but the most likely ones are weekly or biweekly. You set the maximum number of periods that can be advanced when you define the payroll.