Advance holders

Learn about advance holder functionality in Microsoft Dynamics 365 for Finance and Operations, Enterprise edition.

An advance holder is an employee of a company who is accountable for an expense amount that is provided by the organization. Only a company's worker can be an advance holder. When a procurement happens, an advance holder reports to the company about the expenditures that were made. The company reimburses the employee for the expense amount. A company controls a balance for each advance holder. Users in legal entities in Estonia, Latvia, Lithuania, Poland, Czech Republic, Hungary, and Russia can reflect specific transactions accompanying operations with company’s employees who are accountable for the expense amount that is provided by the organization.

Set up an advance holder

To set up an advance holder, the following tasks should be completed in order.

  1. Create advance holder groups.
  2. Set up an employee posting profile.
  3. Set up account payable parameters.
  4. Create a specific terms of payment for the advance holder.
  5. Create an advance holder.

Advance holder groups

Use the Advance holder groups page to create an advance holder group. You can specify the name, description, and offset account for the advance holder group.

Employee posting profile

Use the Employee posting profiles page to create a profile for advance holder transactions. You can specify the following information for the employee posting profile.

Field Description
Posting profile Enter the posting profile identification code for the advance holder.
Description Enter a brief description of the posting profile.
Valid for Select one of the following options for the level of grouping for setting up the posting profile:

Table – This option is used to set up the posting profile for one advance holder. You must indicate the advance holder code in the Reference field. Group – This option is used to set up the posting profile for a group of advance holders. You must indicate the group code in the Reference field. All – This option is used to set up the posting profile for all advance holders.| |Reference|Select the advance holder code if Table is selected in the Valid for field, or select the advance holder group if Group is selected in the Valid for field.| |Summary account|Select the summary account for posting the transactions.|

Account payable parameters

To reflect advance holder’s transactions you must set up the following on the Account payable parameters page in the Advance holders section.

Field Description
Posting profile Select the default profile to complete transactions for advance holders.
Advance holder sorting If selected, advance holders will be displayed at the beginning of the list in the Advance holders page.
Issue when balance is open If selected, issue of a cash advance to an advance holder who has an open positive balance will be allowed.
Balance closing via cash field group: Name Select the cash slip journal code. This journal code is used to generate cash disbursement slips and reimbursement slips when closing an advance holder’s balances through cash.
Cash Select the cash account to determine the vouchers that are used for closing the balances for the advance holder.
Balance closing via bank field group: Name Select the journal code for transactions to close the balances through a bank.
Account type Select a bank to close the balances for an advance holder through a bank.
Main account Select a bank account code to close the balances for an advance holder through a bank.

Terms of payment for advance holder

To correctly register and post a purchase order through an advance holder, you must use a Terms of payment that was set up with the From advance holder option set to True.

Create an advance holder creation

Before you can create an advance holder, you must have already set up workers. For more information, see Enter worker information (Task guide). Use the Advance holders page to set up a worker as an advance holder. Select the worker to use as an advance holder, click Edit, and then set the Advance holder option to True. You must also complete the following fields.

Field Description
Group Select an advance holder group.
Series Enter the series of the document that is used to verify the identity of the advance holder.
Number Enter the number of the document that is used to verify the identity of the advance holder.
Issue date Select or enter the document issue date.
Issued by Enter the details of the authority or person who issued the document.

Advance holder inquiries and reports

Advance holder transactions inquiry

For a list of transactions for an advance holder, click the Transactions button on the Advance holders page. To see transactions for all advance holders or to create a specific inquiry based on advance holders’ transactions, click Accounts payable > Inquiries and reports > Advance holders inquiries and reports > Transactions. Click Voucher to open the Voucher transactions page.

Advance holder balance inquiry

To see balance for an Advance holder use the Advance holders page. To see balance for all advance holders or to create a specific inquiry based on advance holders’ accounts, click Accounts payable > Inquiries and reports > Advance holders inquiries and reports > Balance.

Advance holder balance report

To preview and print a report based on information about advance holders’ balance, click Accounts payable > Inquiries and reports > Advance holders inquiries and reports > Advance holder balance report.

Advance holder transactions report

To preview and print a report based on advance holders’ transactions, click Accounts payable > Inquiries and reports > Advance holders inquiries and reports > Advance holder transactions report.

Advance holder transactions

Learn how to work with advance holder transactions in Microsoft Dynamics 365 for Finance and Operations, Enterprise edition.

Transactions for these workers who are advance holders can be posted by using advance holder accounts. The worker ID that is specified for each advance holder can be used to track all advance holder transactions. This number is retrieved as an account number for advance holder transactions in the General journals and Advance holder transactions pages.

Create and post a purchase order with advance holder details

For more general information about purchase orders, see Purchase order overview. If a vendor invoice is created and posted with advance holder details, the advance holder’s balances will be posted to the employee balance account instead of the vendor balance account. To add advance holder details to a purchase order, do the following:

  • In the Terms of payment field in the Price and discount section, select the payment term. Select a payment term that has the From advance holder option selected on the Terms of payment page. For more information about setting up terms of payment for advance holders, see Advance holders.
  • In the Advance holder field on the Price and discount FastTab, select the advance holder for the purchase order.

The purchase order posting process creates two vendor transactions with opposite amounts and one advance holder transaction. Without advance holder details, only one vendor transaction is created.

Settle advance holder balances via a bank

When you settle advance holder balances via a bank, journal entries for closing the advance holder balances are created in the general journal. You can set up the code for the journal and the bank in the Advance holders section on the Accounts payable parameters page. For more information, see Advance holders. To close an advance holder’s balance via a bank, open Accounts payable > Advance holders > Advance holders. Click the Balance button on the Action Pane, and then click Close via bank. Enter the following information on the Close via bank page.

Field Description
Date of payment Enter the date that the payment should be posted.
Amount to be transferred Enter the balance amount while closing. The amount that is indicated in the Amount field in the Balance form is displayed by default.
Automatic Select the Automatic check box to create and post a journal that is preset on the Accounts payable parameters page.

Settle advance holder balances via cash

When you settle advance holder balances via cash, journal entries for closing the advance holder balances are created in a slip journal. You can set up the code for the journal and the cash in the Advance holders tab on the Accounts payable parameters page. For more information, see Advance holders. To close an advance holder’s balance via cash, open Accounts payable > Advance holders > Advance holders. Click the Balance button on the Action Pane, and then click Close via cash. Enter the following information on the Close via cash page.

Field Description
Date of payment Enter the date that the payment should be posted.
Amount to be transferred Enter the balance amount while closing. The amount that is indicated in the Amount field in the Balance form is displayed by default.
Automatic Select the Automatic check box to create and post automatically a journal that is preset on the Accounts payable parameters page.

After the slip journal is processed, if the amount in the Amount to be transferred field was negative, a disbursement slip is generated for the advance holder when the balances are closed. If the amount in the Amount to be transferred field was positive, a reimbursement slip is generated.

Additional resources