Employee payments explained
You will know what an employee transaction is, how it changes a driver’s balance, and how advances, trip pay and returns are netted when payroll runs.
Payments › Employee Payments records every movement of money between the company and a driver or employee that is not the monthly salary itself: an advance before a trip, trip-based pay after it, money the driver hands back, and reimbursements. Each one is a transaction with a number from the ET series.
Together with fuel marked Paid By Employee and customer cash collected on the road, these transactions make up the driver’s running balance. Payroll reads that balance so the month’s net pay is right without anyone keeping a side ledger.
The transaction record
The option lists behind Transaction Type and Transaction Nature are set per company; the labels in these docs describe their purpose rather than quoting a fixed list. Check the drop-down on your own screen.
Field | Meaning |
|---|---|
Transaction No | Auto number from the ET series in Settings › Invoice Settings (Employee Transaction) |
Date | When the money moved |
Employee | The driver or employee |
Transaction Type | What kind of movement it is, from your company’s list (for example advance, trip pay, return) |
Transaction Nature | Whether it adds to or reduces what the employee is owed |
Amount | The value |
Payment Type | Cash, bank or other method from Settings › Payment Type |
Related To / Select Entity | The booking or other record the payment belongs to |
Notes, Payment Files | Remarks and the signed voucher or receipt |
The driver balance
Every driver and employee has a Current Balance on the Drivers and Employees lists, shown as Dr or Cr. Money the company has given that has not yet been earned or returned (an advance) is owed by the employee; money the employee has spent for the company or earned but not yet received (fuel Paid By Employee, trip pay due) is owed to the employee. The Single Employee Statement lists every line behind the figure.
How transactions meet payroll
When you run Payroll › Payroll for a month, each employee’s row has a Transactions column. It shows the open items picked up from Employee Payments and elsewhere, and nets them into Additions (+), Deductions (+) and Net:
- Advance paid: an advance given during the month is deducted from the net.
- Advance given back: cash the employee returned reduces the deduction.
- Customer Payment paid: customer cash the driver collected and still holds is deducted.
- Trip based salary already paid: trip pay handed over during the month is not paid twice.
- Salary: the package amount from People, after attendance and LOP.
Where to record what
Situation | Record it as |
|---|---|
Driver gets cash before a trip | Employee Payment, advance type, Related To the booking |
Driver is paid per trip after delivery | Employee Payment, trip pay type, Related To the booking |
Driver hands unspent cash back | Employee Payment, return type |
Driver paid for fuel from his pocket | Fuel Tracking entry, Payment Status Paid By Employee |
Driver paid a toll or repair | Expense with the employee as the payer, or an Employee Payment reimbursement type |
Driver collected customer cash | Customer Payment plus an Employee Payment for the cash held |
Monthly salary | Payroll run and Salary payments, not Employee Payments |
Reports
- Driver Statement and Single Employee Statement: every transaction for one person.
- Employees Balance Statement: closing balance per employee.
- Driver Run Sheet: trips and the payments against them.
- Vehicle Profit/Loss counts trip-related employee payments under Total Employee Payments.
Need Help?
Chat with the NShine ERP support team on WhatsApp at +91 79950 87755, or ask from inside the app. Last checked 9 November 2026 against app.nshineerp.com.