Staff Loans

A staff loan is a cash advance against somebody's future pay: ₱10,000 in January, repaid ₱1,000 a cutoff for ten cutoffs. Kassly holds the amortisation schedule, tracks what is left, and — if you also have Payroll — takes the instalment off the payslip for you.

The same page also holds your business loans, the money you borrowed from a bank or a lender. They share one screen and one engine, so both are described here where the behaviour is the same.

Needs the Loans add-on (₱300 per branch each month). It is not in any bundle, including the Everything Bundle. One add-on covers both staff advances and business loans. See Plans & add-ons.

Loans are web only. There is no loan screen anywhere in the mobile app — no request, no balance, no repayment. A staff member cannot see their own advance on the tablet, and a manager cannot file one there.

"Loan Proceeds" at the POS is something else

The POS Cash In dialog has a reason called Loan Proceeds, described as "Cash from a loan already recorded in Loans". It is easy to assume that has something to do with a staff advance. It does not.

Loan Proceeds attributes drawer cash to a BUSINESS loan, never a staff advance. It exists so that when your bank loan lands and you put the cash in the till, the Cash In can be tagged to the liability instead of looking like mystery money. The picker only offers business loans that have actually been disbursed, and it insists you say which one — "Pick which loan this cash came from". Nothing about it touches an employee's advance. See During your shift.

The two kinds of loan

	Employee Loan	Business Loan
What it is	A cash advance to a staff member	Money the business borrowed
The other party	A Borrower, picked from your staff	A Lender, typed as free text
Direction of the money	Out to the employee, then repaid back in	In from the lender, then repaid out
Repayment	Recorded directly, or deducted from payroll	Booked through the expense pipeline
In your books	An asset — Employee Loans Receivable	A liability — Loans Payable

The rest of this page is written for the employee case, and notes the business differences where they matter.

Finding it

SALES → Loans in the sidebar, at /app/loans. The list carries the borrower or lender, the principal, what is outstanding, the status and the next due date, filterable by type and status. Clicking a row opens the loan.

Filing a loan

Press New Loan.

Field	Required	Notes
Loan Type	Yes	Employee Loan (cash advance) or Business Loan (bank/lender/owner)
Borrower	For an employee loan	Searched from your staff by name or email
Lender	For a business loan	Free text, e.g. BDO Unibank
Principal Amount (₱)	Yes
Term (installments)	Yes	A whole number of instalments, up to 360
Interest Type	Yes	No Interest, Flat Rate or Diminishing (Reducing Balance)
Interest Rate (% per period)	No	Disabled when the interest type is No Interest
Repayment Frequency	Yes	Monthly, Per Payroll or Custom

Two things to read carefully:

• Term is a count of instalments, not months. 6 means six instalments.
• The interest rate is per period, not per year. 2 means 2% per instalment. On a six-instalment flat loan that is 12% of the principal in total, not 2%.

Repayment Frequency is the field that decides whether payroll touches this loan. Only Per Payroll is picked up by a payroll run; see below.

Interest, and how the schedule is built

The amortisation schedule is generated the moment the loan is approved, and you can read it on the loan's page under Amortization Schedule — one row per instalment, with the principal and interest due, what has been paid against each, and its status.

Interest type	How each instalment is worked out
No Interest	The principal split evenly. Interest is always zero
Flat Rate	Total interest is principal × rate × term. Both principal and interest are split evenly across every instalment
Diminishing	A level instalment amount; each period's interest is recalculated on the remaining balance, and the principal is the rest

The last instalment absorbs any rounding, so the totals always come out exactly to the principal.

Due dates are always monthly, whatever frequency you chose. The schedule is anchored one month apart from the approval date — even for a Per Payroll loan, which in practice is deducted twice a month. The due dates on the schedule are therefore a rough guide for a per-payroll loan, not the dates the deductions actually happen on. What the deduction takes is driven by the instalment amounts, not by their dates.

Nothing marks an instalment overdue. An instalment past its due date and unpaid still reads Pending. There is no overdue report, no ageing, and no reminder — the Next Due column on the list is the only signal, and it does not change colour.

Approval

Filing a loan does not hand any money over. What happens next depends on who filed it:

Filed by	Result
Owner	Approved immediately — "Loan created and approved"
Anyone else	Queued — "Loan request submitted — it now awaits approval before it can be disbursed"

A queued loan sits in the shared Approvals queue and the loan's page says so: "This loan is awaiting approval in the Approvals queue. It cannot be disbursed until approved." See Approvals.

Two trust rules are enforced there, the same ones payroll uses:

• A Manager cannot approve their own loan request.
• A Manager-requested loan needs an Owner's approval.

A rejected loan is finished — its status becomes Rejected and the reason is shown on its page. There is no way to revive it; file a new one.

Disbursing

Press Disburse on an approved loan and confirm. The loan becomes Active, is stamped with the date and who did it, and its full principal becomes outstanding.

That is also the moment the loan lands in your accounts: for a staff advance, Kassly books the advance as money owed to you and cash going out. See Chart of accounts.

Disbursing does not record a cash movement in the drawer. Your books show the cash leaving, but an open shift's expected cash does not. If you hand the advance over out of the till, record a Cash Out on the shift as well, or the drawer will read short at close. See Cash over and short. The same applies in reverse when an employee repays in cash.

Repaying by hand

Record Repayment on an active loan. The dialog shows the outstanding balance and asks for an amount and a date.

The payment is applied to the earliest unpaid instalment first, and within each instalment to interest before principal — the standard convention. It rolls forward across instalments until the amount is used up, so a lump sum can clear several at once.

Paying more than the loan still owes is refused: "Repayment amount exceeds the loan's outstanding balance." When the balance reaches zero the loan closes itself as Completed.

For a business loan the dialog asks for two more things — a Branch and an Expense Category — because a business repayment is money going out and rides through the normal expense pipeline: "this books a linked expense through the normal expense pipeline." The loan's own balance drops straight away; the accounting entry waits until the linked expense is approved.

Repaying out of payroll

This is the part staff advances are for, and it has one precondition that is easy to miss.

Only loans set to Per Payroll are deducted automatically. A Monthly or Custom employee loan is never touched by a payroll run — you record those repayments by hand. This is deliberate: taking money out of somebody's pay that they did not agree to is worse than making you do it manually.

You also need the Payroll add-on. Loans on its own tracks the advance; Payroll is what deducts it.

When a payroll run is computed, for each employee it looks for active employee loans set to Per Payroll and adds a Loan repayment line to the payslip:

• The amount is the earliest unpaid instalment's remaining balance.
• It is capped by what the payslip can absorb. Statutory contributions and withholding tax come off first, then loans, then manual deductions, and net pay never goes below zero — so a thin cutoff deducts less rather than overdrawing the person.
• More than one loan is taken oldest first, until the pay runs out.

Nothing is actually repaid until the run is posted. A computed run is a proposal; recomputing it changes the line freely. Posting the run turns each loan line into a real repayment against that loan's schedule, and posting twice cannot double-credit a loan.

The line appears on the payslip as Loan repayment, and it cannot be removed from the payslip — only manual lines can. See Payroll.

Writing a loan off

Write Off on an active loan asks for an optional reason, sets the outstanding balance to zero and marks the loan Written Off. The page then shows when and why.

There is no way back from a write-off, and no partial write-off. It is the answer for an advance to somebody who has left and is not going to repay.

Loan statuses

Status	Means
Pending Approval	Filed, waiting in the Approvals queue
Approved	Signed off. Disburse is now available
Active	Disbursed and being repaid
Completed	Fully repaid. Reached automatically
Written Off	Given up on
Rejected	Refused at approval. A dead end

What the borrower sees

Nothing, until payday.

A staff member cannot see their own loan anywhere in Kassly. The Loans page needs a permission only Owners and Managers hold by default, there is no self-service loan screen, and nothing is emailed or pushed when a loan is filed, approved, disbursed or repaid. The only place the employee ever sees it is the Loan repayment line on their payslip — and only once the run has been posted.

So the paperwork your staff sign, and the conversation about what they owe, stay outside the app. Kassly is the ledger, not the notice board.

Who can do what

Loans use two permissions on top of the add-on:

Permission	Covers	Default holders
View loans	See the list, a loan and its schedule	Owner, Manager
Manage loans	File, disburse, record a repayment, write off	Owner, Manager

Action	Owner	Manager
See the loans list	Yes	Yes
File a loan	Yes, approved immediately	Yes, goes to the queue
Approve a loan	Yes	Not their own, and not one another Manager filed
Disburse	Yes	Yes
Record a repayment	Yes	Yes
Write off	Yes	Yes

Cashiers and Staff cannot open the page at all. Custom roles can be given either loan permission on its own — see Custom roles.