Record a return or settlement
You will have returned cash recorded so payroll deducts only what is still open, or a leaving employee’s balance brought to zero with a final payment and a Last working date.
Two jobs share this page because they use the same screen. A return is a driver handing back unspent advance money or collected customer cash during the month. A settlement is closing out everything a leaving employee owes or is owed, after which payroll stops for them.
Both are recorded on Payments › Employee Payments. The difference is what you check before and after.
Before You Start
- You know the employee’s Current Balance from the Drivers or Employees list and have read the Single Employee Statement so you know what makes it up.
- For a settlement: the final salary month is approved in Payroll › Payroll, and the employee’s record has a Last working date.
- A cash or bank Payment Type exists for the money moving.
Steps
- Open Reports › Single Employee Statement for the employee and note the closing balance. A balance owed by the employee means they hand back money; a balance owed to the employee means you pay them.
- Open Payments › Employee Payments and click Add.
- Pick the Employee and set the Date.
- Choose the Transaction Type for a return, or your company’s settlement type, with the Transaction Nature that reduces the open balance. For a return, this is what payroll shows as Advance given back.
- Enter the Amount and the Payment Type, and set Related To to the booking if the cash belongs to one trip.
- Write what the money is in Notes, attach the signed voucher under Payment Files, then Save.
- For a settlement, open the employee under Drivers or People › Employees, set the Last working date and untick Is Active. Payroll › People shows the same date as Last day. Without it the payroll row is Blocked with InactiveEmployeeLastWorkingDateMissing.
- Re-open the Single Employee Statement and check the closing balance is zero.
Fields On This Screen
Field | What to enter | Required |
|---|---|---|
Employee | The driver or employee | Yes |
Date | Date of the return or settlement | Yes |
Transaction Type | Return type, or settlement type | Yes |
Transaction Nature | Reduces what is open (return) or clears the balance (settlement) | Yes |
Amount | Cash returned, or the final amount paid or received | Yes |
Payment Type | Cash or bank method | Yes |
Related To / Select Entity | Booking the returned cash came from | For a return |
Notes | For example: unspent advance returned; final settlement | Recommended |
Last working date (on the employee record) | The employee’s final day | For a settlement |
What This Changes
- A return raises the cash or bank account and lowers the amount owed by the employee; Payroll › Payroll shows Advance given back and deducts only the remaining advance.
- The employee’s Current Balance moves toward zero on the Drivers or Employees list.
- A settlement payment to the employee lowers the cash or bank account and clears the balance owed to them.
- With Last working date set and Is Active off, the employee leaves future payroll runs, and the month containing the last day is paid for the days worked.
- The Employees Balance Statement shows the employee at zero.
Tips
- Settle on the last day, not the next payroll day. Open advances are easier to recover while the employee is still there.
- Documents and files on the employee record stay after deactivation; do not delete the record.
- If the final month’s net is negative because of a large advance, record the recovery as a return rather than leaving the payroll row Blocked.
Frequently asked questions
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.