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author's profile photo Former Member
Former Member

posting to finance for loan and salary advance

Hi Experts,

Have two posting scenario where i am looking for some help:

Scenario 1:

How do we do posting for loans, client wants to see loans paid to employee in seperate GL , also the loan is not paid through regular payroll, i.e. the amount of loan paid will not be increasing net pay for that particular payroll cycle.

Scenario 2:

Client pays salary advance to employees and the same is recoverable in the month end payroll, advance is paid on 22nd of every month and recovery for the same happens in payroll which is done on 7th of next month. Salary is paid on 7th of every month for previous months work. So i am bit confused on the posting for salary advance, what kind of posting entries we can do as this is to be the standing amount till the recovery happens in salary.

Thanks for all the help.

Regards,

J

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1 Answer

  • author's profile photo Former Member
    Former Member
    Posted on Jul 19, 2011 at 03:53 AM

    Jyoti,

    Chill

    For loan payment, you can use off-cycle payroll run, for this you can write a dynamic action, when you maintain the entires in loan (payment) option, the amount and date will be defaulted in IT0267 by creating a loan payment wage type.

    1st scenario is resloved

    Coming to 2nd scenario

    Do the same, for the disbursement of salary advance, use off-cycle payroll and for deduction you can use either IT14 or 15. Through this you may be able to disburse and deduct in same period.

    Cheers

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    • Hi Jyoti,

      The Loans Scanerio can be handled in the following Method

      1. As employees are created as vendors, the FI team will make a payment against vendor , the same entry will be captured in HR loans infotype as external payment. This will enable that the loan is not added to your salary.

      2. As recovery happens through payroll, the customer specific wage types, will be assigned to a symbolic account, this symbolic account will have a AAtype as K.

      Regards

      Raghu

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