Hi PAL 50 Turner 

Thanks for reaching out. If you are still looking for guidance on how to correct the YTD loan balance that was set up incorrectly, please let us know.

Before performing these steps, it is highly recommended to create a complete backup of your Sage 50 data.

To clear the YTD loan amount from the employee record, please follow these steps :

Part I: Removing the loan from the employee record

1. Open the Payroll Journal and select the employee.

2. In the Check Number field, enter a unique identifier (e.g., Write-off + Date).

3. In the Loans box, enter the amount you wish to zero out as a negative figure (e.g., -10,000.00).

4. Ensure there are no other deductions or expenditures (Benefits, taxes, etc.) on the check.

5. Note: The Net Pay will be a negative figure. Select Report > Display Payroll Journal Entry to verify the entry, then Post the paycheck. This successfully removes the loan from the employee's YTD.

Part II: Adjusting the Bank Account Because posting the negative paycheck effectively puts the money "back" into your bank account in the ledger, you can perform a General Journal entry to finalize the write-off:

1. Go to the General Journal.

2. Credit the bank account (to offset the amount put back by the payroll entry).

3. Debit the account where you want to record the write-off (please consult your accountant for the correct account, such as account 1220 or an expense account).

Alternatively, you can avoid Part II by creating a non-taxable "Reimbursement" income to offset the negative loan within the payroll check, bringing the Net Pay to $0.00.

Best regards,

Dongwoo Chang

Thank you so much for your help

Thank you so much for your help