Cash Advances

Overview

The Cash Advance feature in Fr8Labs helps users manage advance payments made to vendors, staff, or other parties before expenses are incurred.

It is designed to:

• Record deposit payouts (advance payments)

• Track how these deposits are settled or refunded later

• Maintain clear visibility of all outstanding and reimbursed advances in one place

This feature is commonly used by companies that handle container deposits, vendor prepayments, or staff advances for job expenses.

It supports both one-step and two-step accounting flows — giving flexibility to companies with either simple or segregated treasury controls.

How It Works

Step 1: Creating a Cash Advance

You can create a cash advance either at the Job Level or directly from the Cash Advance List View.

1. Navigate to Accounting → Cash Advance → + New Cash Advance

2. Select the Job (if applicable) to associate the advance with a shipment.

3. Enter the details:

   • Party Type: Vendor / Employee / Customer

   • Party Name: Select the relevant vendor or staff

   • Mode of Payment: Bank / Cash / Other

   • Amount: The amount advanced

   • Purpose / Reference: Describe the reason for the advance

Step 2: Choose Between 1-Step or 2-Step Posting

Fr8Labs supports two accounting posting methods depending on your company’s policy.

Option A: 1-Step Posting (Simpler)

For companies without separate treasury handling:

• Debit - Deposit Account (Account name may vary — e.g., “Advance to Vendor,” “Staff Advance,” or “Deposit Paid.”)

• Credit - Bank Account

This directly records the advance as a deposit paid from the bank.

Option B: 2-Step Posting (With Treasury Control)

For companies with separate disbursement departments:

1. When the deposit is recorded:

   • Debit - Deposit Account (Account name may vary — e.g., “Advance to Vendor,” “Staff Advance,” or “Deposit Paid.”)

   • Credit - Payable Account

2. When the treasury processes payment:

   • Debit - Payable Account

   • Credit - Bank Account

This method provides a clear audit trail between departments.

Step 3: Settling the Cash Advance

Once the related expenses or vendor invoices are received, the cash advance can be settled. Fr8Labs supports two settlement paths:

a) Settlement via Vendor Invoice

When creating a vendor invoice, you can fetch the existing cash advance and “knock off” the deposit against it.

• Effect:

  • Debit - Trade Expense / Cost Account

  • Credit - Deposit Account

b) Settlement via Refund / Reimbursement

If the advance (vendor or staff) is returned instead of used:

• Debit - Bank Account

• Credit - Deposit Account

This clears the outstanding deposit.

Step 4: Monitoring Advances and Reimbursements

Navigate to Accounting → Cash Advance. You can track all active and cleared cash advances from:

• Cash Advance List View — view and filter advances by date, vendor, or job.

• Reimbursements Tab — view all refunds and reimbursements tied to advances.

Examples

Best Practices & Notes

• Use 2-Step Posting if your company separates operational approval from treasury payment.

• Avoid manual journals for settlement — use the settlement options provided to maintain linkage.

• Regularly review outstanding deposits via the Cash Advance summary to ensure timely closure.

• Only one settlement path (invoice or refund) should be applied to a given advance — not both.

FAQ

Q: Can I have multiple cash advances linked to one job? Yes. Multiple advances can be recorded for different purposes or vendors within the same job.

Q: Can I partially settle an advance? Yes. Fr8Labs supports partial settlement through either invoices or reimbursements (aka refunds).

Q: How do I know which advances are unutilized? Go to the Cash Advance List screen — unutilized deposits will appear as having a remaining balance.

Q: What happens if I settle a cash advance twice? The system will alert you if you try to apply an already-settled deposit, preventing duplicate settlements.

Documentation owner: Fr8Labs Customer Success. Formatting reviewed: 21 September 2026; product behaviour not reverified in this formatting pass.