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Former Member

Termination & Loan Balance

Dears;

My customer has a case, they have employees leave the company while they have loan balances which hasn't been settled and they didn't come to settle them.

for example these employees worked for a number of days during the month then left.

Now my customer wants to terminate them and run them the payroll as to take the payment amount and reduce it from the balance amount, and have the remaining balance as a negative amount and and to be assigned to a GL.

Can this be done?

Regards;

Lobna

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3 Answers

  • Best Answer
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    Former Member
    Posted on May 05, 2011 at 05:08 AM

    HI,

    As per your query, you have to settle the loan amount taken. For this you can set the priority for the loan wage types. In table V_51P6_B you have to maintained loan WT.

    For eg:

    /LEP special payroll repayment Priority-- (B) and in Arrears coloumn you can select (1 - Deduct total amount)

    /LRP Regular repayment -- (B) and in Arrears coloumn you can select (1 - Deduct total amount)

    So system will recovery loan for his last salary generated and will created Advance claim in his salary slip. This will help you to track the recovery amount from the employee.

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    • 1 - Create a deduction to clear the Balance (as if the employee would have enough money to cover it). Whatever the system can't deduct should be transfered into the Deductions Not Taken Table (DDNTK), and possibly into the Arrears Table (ARRRS).

      2 - Create a special "Loan Clearing WT", based on a net payment wt, so that you could "loan" the employee just enough money to cover the Deductions Not Taken (creating a new debt), and a Payroll PCR that transforms that Loan Clearing WT into a Claim (/561) to cancell things out.

      This process would enable you to transfer the Unpaid Loan Balance into an Employee Claim.

      You could even "automate" the process with special PCRs that look for Termination Measures and Unpaid Loan Balances.

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    Former Member
    Posted on May 05, 2011 at 05:18 AM

    See, your first query, if loan balance is stand and which need to be settled,

    If employee payment amount (F&F settlement) is adequate to pay loan balance so in that case, you can opt, special payment (payroll) under payment option and clear the loan balances

    2nd query, if payment amount is not adequate and you want to post balance amount as negative amount and posted to GL

    Create a wage type (earning) through which you can post balance loan amount as available balance will fulfil to clear the loan balance. Now to show outstanding in GL, you can mark wage type as +ve amount as credit and -ve as debit and mapped to their GL. Since it is not an earning so no need to mapp the wage type in net amount.

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    Former Member
    Posted on May 04, 2011 at 06:11 PM

    may i knw how you do the full and final settlement for your company

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