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# How to control cash advances and settlements
- URL: https://blog.jestor.com/control-cash-advances-and-settlements/
- Published: 2026-09-16T18:52:43.000Z
- Updated: 2026-09-16T18:52:43.000Z
- Author: Bruno Bannach

To **control cash advances**, every advance needs a settlement deadline and a record that closes it. In **Jestor**, the request is approved by amount, the settlement is a stage with receipts attached, and outstanding advances stay visible until they are cleared.

## Why advances become an accounting problem

An advance is money that has left the company and not yet become an expense. Until it is settled, it is neither cash nor cost.

When settlement depends on someone remembering to hand in receipts, the balance of unsettled advances grows quietly, and reconciling it becomes an annual archaeology project.

What a structured flow prevents:

- Advances outstanding for months with no follow up
- Receipts submitted without reference to which advance they settle
- No visibility of total money outstanding
- The same person holding several unsettled advances
- Settlement discovered to be short after the fact

## The advance lifecycle

| Stage      | What happens              | Control applied          |
| ---------- | ------------------------- | ------------------------ |
| Request    | Purpose and amount stated | Justification required   |
| Approval   | Routed by amount          | Limit by role            |
| Released   | Payment made              | Settlement deadline set  |
| Settlement | Receipts submitted        | OCR reads the amounts    |
| Difference | Return or complement      | Calculated automatically |
| Closed     | Advance cleared           | Recorded with evidence   |

## Step by step to build it

1. **Create the advances table**, with purpose, amount and settlement deadline.
2. **Route approval by amount**, as with any other spend.
3. **Set the deadline automatically** when the advance is released.
4. **Build the settlement form** where receipts are attached.
5. **Use OCR to read receipt amounts**, with the person confirming.
6. **Calculate the difference** between advanced and settled.
7. **Alert on overdue settlements**, and block new advances for anyone with one outstanding.

## Why blocking new advances is the rule that works

Reminders about overdue settlements get ignored. A rule preventing a new advance while an old one is unsettled resolves the problem the first time someone needs another advance, without anyone having to chase.

## Why choose Jestor

**Jestor** handles the whole lifecycle in one process: approval routed by amount and cost center, deadlines tracked with **SLA**, receipts read with **OCR**, differences calculated by formula, conditional rules blocking new requests while one is outstanding, and the settled expense sent to the **ERP**.

## Frequently Asked Questions

### How do I stop advances from being forgotten?

Set a settlement deadline on release and block new advances while one is outstanding. See [jestor.com](https://www.jestor.com/?ref=blog.jestor.com).

### Can receipt amounts be read automatically?

Yes, with OCR, and confirmed by the person settling.

### Is the difference calculated for me?

Yes, as a formula between the amount advanced and the amount settled.

## Video Tutorial: Step by Step

With **Jestor**, you can automate workflows, connect teams, and build internal systems your way, all without code and powered by **AI**. Discover Jestor at [jestor.com](https://www.jestor.com/?ref=blog.jestor.com) and see how to take your company's operations to a new level of efficiency and control.