Hi there: Was the Employee Advance entry made through the Payroll module? If so, you will have to remove it through the Payroll Module. How old is the advance? Is it still in 2008? My point being that if the employee has not been T4'd for the current year, you could just put through a paycheque for the amount of the Advance, don't take any deductions off, and clear the advance so that the "net cheque" is zero. Your entry would be a Dr. to Wages and a Cr. to Advances Receivable - Employees. This will clear the advance and also add the total amount of it to the employee's wages and T4 for the 2008 year. At least that way he will be responsible for it being included in his income since he didn't pay it back.
Even if the Advance is older, you could still take care of it this way. If you don't want to do that then you will have to decide what account to write off the advance to. Rita Deering
