Hi,

In Odoo 19, employee advances can be managed using Approvals along with Accounting and Payroll, but it requires some configuration. You can create a custom Approval type for Employee Advance. Once approved, the finance team records the payment manually using a journal entry (debit Employee Advance account, credit Bank/Cash). Note that the Approvals module does not generate accounting entries automatically. For salary recovery, create a Salary Rule in Payroll to deduct the advance, linked to a custom field on the employee contract or computed based on the outstanding advance balance. For better tracking, use a dedicated Employee Advance receivable account, link advances to the employee as a partner for individual balance tracking, and configure the salary rule to deduct based on the remaining balance to avoid over-recovery. This way advances are clearly reflected in the balance sheet and reconciled gradually through payroll deductions.

Hope it helps