Is Employee Advance check supposed to show up on my P&L as expense? On P&L, the emp. gross pay is listed & so is advance check.

For example: An employee was paid an advance of $500 mid pay period (a written check), and when the employee received his paycheck at the end of the pay period, the advance was deducted.
Both the gross paycheck total & the advance check of $500 show up on the Profit & Loss, making it seem like employee was paid $500 more than he actually was.
Did I set this up incorrectly?


Nothing here is Expense; it is cash flow as Expenditure.

The check to give them the loan is posted on the expenses tab as Other Current Asset = Employee Loan. It's not an expense; you didn't get anything for your expenditure. There is no Business Purchase involved, here.

Now they repay by cash, check or Payroll deduction.

The Gross Pay is always expense. Their Takehome is reduced by the net pay deduction. Edit your deduction item; where it wants to link to a Liability account, it links to that same Other Current Asset account as internal repayment of the loaned amount. If you had to Fix that account link, then at the step of Save, QB offers to move the existing data for you. Let it.

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