Skip to Content

How to implement third party deduction on payroll in SAP?

We are a provider of loans to employees and the repayment is integrated with payroll. Our clients use SAP for their payroll and do standard deductions like PF, TDS and ESI while processing the payroll. However, they are not aware of deduction for repayment of loan provided by third party lender in their SAP.

What are the possible ways to include third party deduction on payroll in SAP? What would the efforts for these?

Thanks a lot in advance. Wishing you a wonderful year ahead.

Cheers!

Vikas

Add comment
10|10000 characters needed characters exceeded

  • Hi Vikas,

    As Aman suggested you can configure the loans in system, loan payment can be outside and repayment can be with in Payroll system.

    Thanks,

    Sai Krishna

  • Get RSS Feed

2 Answers

  • Jan 04 at 11:15 AM

    Hi Vikas,

    You can use IT0045 in the Master data to create loan payment and repayment plans.

    Best Regards,

    Aman

    Add comment
    10|10000 characters needed characters exceeded

  • avatar image
    Former Member
    Jan 09 at 11:28 AM

    Hi Vikas ,

    I guess Vendor is responsible to maintain the Loan master data and Taxation and Non monetary perquisite ( If Applicable ), your client is responsible for only loan recovery from employee's salary .

    Kindly correct me if i am wrong in above lines .

    If it is the same process , Client should have separate deduction wage type for Loan recovery and it should be used through infotype IT0057 .

    Warm regards ,

    SS.

    Add comment
    10|10000 characters needed characters exceeded