Employee loan in Business Central

Dears, Good Morning,

As the new account type “Employee” introduced in NAV and BS; and it can be used for Expenses reimbursement, and this is very clear, my point now in Emp. card there is a posting group linked to 1 account only let say ( Staff Payables ) in some situation the Emp ask for loan or salary advance and before we were dealing with the emp as a Customer with a diff, posting group, I am asking for any idea to not create to cards for the emp.; one as Emp. and the other as Customers.

Thanks in advance for your help.

Mahmoud

Not sure what your question is. Are you asking about which solution is the best, meaning do it using a Customer record or an Employee record?

Mr Palle, Thanks for your response,

Yes, for the Emp. Expenses like Business trips & etc. we will use the new feature Employee and pay using the normal payment journal, this might have daily transactions, and this will go to a liability account ( Staff Payables).

But sometimes the Emp. requesting a loan and earlier we used to deal with it as a customer and it will be a current asset account ( Staff Receivables).

is this the best option to use the above scenarios or do you suggest a better way?

Sorry if my English not that good to understand.

English is not my native language either, so that was probably why I did not clearly understand you. But back to your question.

I think for loans I would do it as a customer for a number of reasons. Mainly because of Normal reminders and charge memos, and secondly in many countries you are not allowed to do a loan to anyone without an interest rate based upon the the lended amount, And as far as I can see on the employee functionality this cannot be done.

I know that if you are both using Customers og Employees then you do not get the full overview of an employee - but here in Denmark where i am located, theres a law saying that it is two different “issues” and cannot be mixed together. Its like using the Vendor Table - for Employee expenses, and Customers for Loans (or similar) - this is how we do it at my company.

Example. An employee needs to travel to a customer and have some expenses, A ferry ticket/Bridge ticket, some lunch and a hotel night stay. As the Employee is using his own money/creditcard then we owe him/her the money

So every employee gets created as a vendor, and we do a “purchase order” of the above and then we do a normal vendor payment.

This can not be handled by the new employee functionality.

Example: The Loan. We create a customer, Do a sales invoice with the loan amount. And then we do Finance Charges to add interets. and when the employee pays an amount it is deducted from the outstanding value.