Understanding Loans and AdvancesThis chapter provides overviews of loans and advances and loan and advance deductions and discusses how to enter loan and advance information.
Understanding Loans and AdvancesMany companies in India grant payees loans that are then deducted over a specified period of time from the payee's pay, at a specified interest rate or as an interest-free loan. Additionally, some companies advance a payee a specified amount against future pay and the advance is then deducted from his or her pay over a period of time. Global Payroll for India enables you to manage such loans and advances.
Note. Global Payroll for India supports the basic calculation of loan with balances; calculation with compound interest and reducing balances is not supported.
To set up and manage a loan or advance, you:
Assign the deduction to the payee.
Enter details of the loan or advance by using variables.
Manage loan or advance payment deductions as part of the normal payroll processing calculations.
Understanding Loan and Advance Deductions
This section discusses:
Delivered loan and advance deductions.
Viewing delivered elements.
Delivered Loan and Advance DeductionsGlobal Payroll for India delivers the following deductions to process loans and advances:
LOAN
Use the LOAN deduction to calculate and deduct loan repayment amounts from an employee's pay.
ADVANCE
Use the ADVANCE deduction to calculate and deduct advance repayment amounts from an employee's pay.
See Also
Defining Earning and Deduction Elements
Viewing Delivered ElementsPeopleSoft Global Payroll delivers a query that you can run to view the names of all delivered elements designed for India. Instructions for running the query are provided in PeopleSoft Enterprise Global Payroll PeopleBook.
See Also
Entering Loan and Advance Information
This section discusses how to:
Enter a recurring loan.
Enter a recurring advance.
Enter a one-time change to the loan or advance amount.
Increase the loan or advance balance.
See Also
Assigning and Disabling Earnings and Deductions by Payee
Overriding Supporting Element Values for Payees
Pages Used to Enter Loan and Advance Information|
Page Name |
Definition Name |
Navigation |
Usage |
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GP_ED_PYE |
Global Payroll & Absence Mgmt, Payee Data, Assign Earnings and Deductions, Element Assignment by Payee, Element Assignment by Payee |
Assign specific earning and deduction elements to a payee or disable earning and deduction elements for payees. |
|
|
GP_PEA_SOVR_SEC |
Click the Element Override link on the Element Assignment by Payee page. |
Override the value of a variable associated with a particular earning or deduction for a payee (also called a payee/element override). Supporting element overrides are provided to change loan date and reference number. |
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GP_PAYEE_SOVR |
Global Payroll & Absence Mgmt, Payee Data, Create Overrides, Supporting Elements, Supporting Elements |
Override the value of a bracket, date, duration, formula, or variable element that's associated with a payee. |
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GP_PI_MNL_ENRDED |
Global Payroll & Absence Mgmt, Payee Data, Assign Earnings and Deductions, One Time (Positive Input), One Time (Positive Input) |
Enter positive input for a single payee. (You select the pay group, calendar, and emplID to access this page.) |
Entering a Recurring Loan
To enter information for a recurring loan:
Access the Element Assignment by Payee page (Global Payroll & Absence Mgmt, Payee Data, Assign Earnings and Deductions, Element Assignment by Payee, Element Assignment by Payee) so that you can assign the loan deduction to the payee.
Click Add New Assignment.
Select the entry type of Deduction.
Select the element name of LOAN.
In the Begin Date field, enter the date on which the loan begins.
Click OK. This accesses the Element Detail page.
Enter INR in the Currency Code field.
In the Supporting Element Overrides group box, enter the element name of LA VR LN REF in the Variable Name field.
Enter the loan reference number in the Character Value field.
Insert a row.
Enter the element name of LA VR LN DATE in the Variable Name field and enter the begin date for this loan in the Date Value field.
Insert a row.
Select the element name of LA VR LN INSTALL in the Variable Name field and enter the amount of the loan to be deducted each payroll run in the Numeric Value field.
Insert a row.
Select the element type of Variable.
Select the element name of LA VR LN TOTAL and enter the total value of the loan in the Numeric Value field.
Click OK.
Entering a Recurring Advance
To enter information for a recurring advance:
Access the Element Assignment by Payee page (Global Payroll & Absence Mgmt, Payee Data, Assign Earnings and Deductions, Element Assignment by Payee, Element Assignment by Payee) so that you can assign the loan deduction to the payee.
Click Add New Assignment.
Select the entry type of Deduction.
Select the element name of LOAN.
In the Begin Date field, enter the date on which the loan begins.
Click OK. This accesses the Element Detail page.
Enter INR in the Currency field.
In the Supporting Element Overrides group box, enter the element name of LA VR ADV REF in the Variable Name field.
Enter the advance reference number in the Character Value field.
Insert a row.
Enter the element name of LA VR ADV TYPE in the Variable Name field and enter the type of advance in the Character Value field.
Insert a row.
Enter the element name of LA VR ADV DATE in the Variable Name field and enter the begin date for this advance in the Date Value field.
Insert a row.
Select the element name of LA VR ADV INSTALL in the Variable Name field and enter the amount of the advance to be deducted each payroll run in the Numeric Value field.
Insert a row.
Select the element type of Variable.
Select the element name of LA VR ADV TOTAL and enter the total value of the advance in the Numeric Value field.
Click OK.
Entering a One-Time Change to the Loan or Advance Amount
When you must enter a one-time change to the loan or advance amount, use the One Time (Positive Input) page (Global Payroll & Absence Mgmt, Payee Data, Assign Earnings and Deductions, One Time (Positive Input), One Time (Positive Input)).
Increasing the Loan or Advance Balance
When you need to increase a loan or advance balance, access the Element Assignment by Payee page (Global Payroll & Absence Mgmt, Payee Data, Assign Earnings and Deductions, Element Assignment by Payee, Element Assignment by Payee and click the Element Override) link. This accesses the Supporting Element Overrides page.
For loans, select the variable name LA VR LOAN ADJ and enter the monetary value by which you want to increase the loan or advance balance.