PeopleSoft Global Payroll for France 9.1 PeopleBook

Administering Loans and Advances

This chapter provides overviews of loans and advances, reimbursement terms, loans and retroactive processing, and discusses how to:

Set up loans and advances.
Generate a loans report.
View delivered loan and advance deductions.

Understanding Loans and Advances

Global Payroll for France enables you to process the following kinds of loans and advances:

Loan or Advance Type	Description
Loan	A payment that is expected to be reimbursed over several months with interest. The system allows each payee to have up to three loans at a given time.
Salary Advance (avance)	An advanced payment of salary that has not yet been earned. The amount advanced may not exceed the monthly salary and can be considered an interest-free loan. It is paid back over one or more months. The system allows a payee to have up to three salary advances at a given time.
Permanent Salary Advance	Similar to a salary advance, except that the payee repays the entire amount all at once. For example, many payees repay this amount when they leave the organization. A payee can have more than one permanent salary advance; however, the system accepts only one per pay period. If you want to add more than one permanent advance for the same pay period, add the new permanent salary advance amount to the balances of any existing permanent salary advances and enter this result as one permanent advance for the pay period.
Advance on Salary (acompte)	A partial advance payment for work already done. The amount advanced cannot be more than the amount earned. The law or collective agreement define the rules that grant entitlement to an advance on salary. It's up to the employer to manage these entitlements.

Understanding Reimbursement Terms

Global Payroll for France is designed to manage many of the regulations that govern reimbursement terms for loans and advances. In addition to what the system already offers, you can also reconfigure the system to meet further needs, if necessary.

This section discusses:

Reimbursement of loans and salary advances (avances).
Reimbursement of permanent salary advances.
Reimbursement of advances on salary (acomptes).
Loan and advance processing relative to garnishment processing.

Reimbursement of Loans and Salary Advances (Avances)

Global Payroll for France is set up to process loan and salary advance paybacks once a month. If there are multiple segments within the month, the system processes paybacks during the first segment of the month. In addition, regulations limit the deduction for reimbursement of a salary advance or loan to a maximum of 10 percent of the net salary each month. If you request a deduction of more than 10 percent of the payee's net salary, the system generates an error message stating that the payment amount exceeds the 10 percent limit. This message is sent to the user and appears on the Payee Messages page.

If multiple salary advances and loans are owed, the system processes the payback amounts in a set order. The processing order for reimbursement of loans and salary advances is as follows:

Salary Advance (RETENUE AV1)
Salary Advance (RETENUE AV2)
Salary Advance (RETENUE AV3)
Loan (RETENUE PR1)
Loan (RETENUE PR2)
Loan (RETENUE PR3)

When the system processes the deduction payments for loans and salary advances, it does not consider the order in which the loans and salary advances were created. It always processes each loan and salary advance reimbursement in this order.

Note. The order in which loans and advances are processed reflects the order of the elements in the PRE SE PRET process section.

Special Circumstances for Reimbursement of Loans and Salary Advances in the Case of Departure

If a payee leaves the organization and the balance of his or her advance or loan is more than 1/10^th of his or her net salary, the system automatically deducts the entire balance, but issues a warning stating that the payment exceeds the 1/10^th limit. At that point, it is up to the organization to change the amount of the payback to comply with regulations.

Sometimes a payee is transferred to an affiliated organization–an organization whose payees are paid using the same payroll system–and the payee's net salary from the former organization cannot cover the balance of the loan or salary advance. In this circumstance, the organization can process the last deduction from the former organization's payslip and roll over the balance owed to the new organization.

See Also

Viewing Payee Messages

Reimbursement of Permanent Salary Advances

The balance of a permanent advance is recovered automatically when a payee leaves the organization. However, you can recover a permanent advance prior to departure by specifying the reimbursement amount using positive input.

See Setting Up Loans and Advances.

Reimbursement of Advances on Salary (Acomptes)

When a payee receives an advance on salary, he/she receives compensation before the regular payroll payment. You can then reduce the payee's next payslip by the amount advanced by entering the reimbursement amount using positive input.

See Setting Up Loans and Advances.

Loan and Advance Processing Relative to Garnishment Processing

Global Payroll for France processes garnishments before it processes loans and salary advances (avances), permanent salary advances, or advances on salary (acomptes). If there is insufficient net pay to cover all loan and advance reimbursements after garnishments are deducted, the system avoids returning a negative net payment by processing the remaining loans and advances in subsequent pay periods.

Understanding Loans and Retroactive Processing

By law, loans cannot be recalculated during retroactive processing.

Global Payroll defines loan elements with the Retro Recalculation option set to Do Not Recalculate. However, because loans are triggered by positive input, and positive input overrides the Retro Recalculation option, you should be careful not to enter new loan data in a closed period.

See Also

Loans and Garnishments

Setting Up Loans and Advances

This section provides an overview of setting up loans and advances, and discusses how to:

Set up loans and salary advances.
Set up permanent salary advances and advances on salary (acomptes).
Specify the amount of a permanent salary advance and the amount to recover.

Understanding The Setup of Loans and Advances

This section discusses:

Loans.
Salary advances (avances).
Permanent salary advances.
Advances on salary (acomptes).

Loans

To set up a loan, use the Request Advances/Loans FRA page.

For each loan, PeopleCode automatically generates positive input for the following elements using a component interface:

Deductions RETENUE PR1, RETENUE PR2, or RETENUE PR3.

The system allows each payee to have up to three loans at a given time. When you enter a loan into the system, Global Payroll for France first assigns deduction RETENUE PR1 to the payee, then RETENUE PR2, and finally RETENUE PR3.
Calendar ID.
Instance.
The deduction's base (which is set to the reimbursement amount).
Loan identification PIN (PRE VR IDENTIFIANT).
Start date of the loan (PRE VR DATE DEBUT).
Loan initial capital (PRE VR CAPITAL).

Salary Advances (Avances)

To set up an advance on salary, use the Request Advances/Loans FRA page.

For each advance on salary, PeopleCode automatically generates positive input for the following elements using a component interface:

Deductions RETENUE AV1, RETENUE AV2, or RETENUE AV3.

The system allows each payee to have up to three advances at a given time. When you enter a salary advance into the system, Global Payroll for France first assigns deduction RETENUE AV1 to the payee, then RETENUE AV2, and finally RETENUE AV 3.
Calendar ID.
Instance.
The deduction's base (which is set to the reimbursement amount).
Salary advance identification PIN (PRE VR IDENTIFIANT).
Start date of the salary advance (PRE VR DATE DEBUT).
Salary advance initial amount (PRE VR CAPITAL).

Permanent Salary Advances

To set up a permanent salary advance:

Access the One Time (Positive Input) page (Global Payroll & Absence Mgmt, Payee Data, Assign Earnings and Deductions, One Time (Positive Input), One Time (Positive Input)) and assign the deduction RETENUE AVPE to the payee.

Note. The deduction RETENUE AVPE does not affect payroll results—it is used only to enter and track the initial amount of a permanent salary advance.
Click the Details link on the One Time (Positive Input) page (see step 1) to access the Positive Input - Details page.
On the Positive Input - Details page, enter the amount of the advance in the Initial Capital of Loan field (do not use the Amount field on the One Time (Positive Input) page to do this).

When you save your data, the system populates the supporting element PRE VR CAPITAL with the amount of the advance. When the advance is processed, the resolution formula for the permanent salary advance stores the value of PRE VR CAPITAL in the balance accumulator PRE AC AVPE. Later, when the payee departs, the system uses the deduction RETEN AVPE D to automatically recover the amount in the balance accumulator.

To recover all or part of an advance prior to a payee's departure:

Access the One Time (Positive Input) page (Global Payroll & Absence Mgmt, Payee Data, Assign Earnings and Deductions, One Time (Positive Input), One Time (Positive Input)).
Click the Details link on the One Time (Positive Input) page (see step 1) for the row containing the deduction RETENUE AVPE.

The Positive Input - Details page appears.
On the Positive Input - Details page, enter the amount you want to recover in the Reimburs Permanent Advance field.

The resolution formula for the advance verifies that the reimbursement amount does not exceed the amount in the balance accumulator PRE AC AVPE. If this amount exceeds the balance, Global Payroll for France puts the payment in error. If the amount requested does not exceed the balance, the system processes the RETEN AVPE D deduction to recover the advance.

Note. The balance of the permanent salary advance is stored in the accumulator PRE AC AVPE. To modify this balance, access the One Time (Positive Input) page, assign the deduction RETENUE AVPE, and override the value of the variable PRE VR CAPITAL.

If you want to know the amount of the balance for the permanent advance, look at the accumulator PRE AC AVPE calculated during the previous payroll.

Note. Note that the balance of a permanent salary advance—stored in the accumulator PRE AC AVPE—is recovered automatically when a payee leaves the organization. In other words, the steps in this section apply only when you want to recover a salary advance prior to a payee's departure.

Advances on Salary (Acomptes)

PeopleSoft delivers the deduction RETENUE ACOM to enable you to reduce a payee's net payment by the amount advanced. PeopleSoft does not deliver an earning element to pay the advance itself, and there is no automatic retrieval of the amount paid as no earning is provided. Nevertheless, you can create rules that enable you to enter an earning for the payment and then automatically process a deduction in the next pay run.

To recover an advance on salary (acompte):

Access the One Time (Positive Input) page (Global Payroll & Absence Mgmt, Payee Data, Assign Earnings and Deductions, One Time (Positive Input), One Time (Positive Input)) and assign the deduction RETENUE ACOM to the payee.
Enter the amount to recover (deduct) in the Amount field on the One Time (Positive Input) page.

See Also

Entering Positive Input

Pages Used to Set Up Loans and Advances

Page Name	Definition Name	Navigation	Usage
Request Advances/Loans FRA	GPFR_LOANS	Global Payroll & Absence Mgmt, Payee Data, Loans, Request Advances/Loans FRA, Request Advances/Loans FRA	Enter loan or salary advance details, create and modify the reimbursement schedule, and view past and current loan/salary advance balances.
One Time (Positive Input)	GP_PI_MNL_ERNDED	Global Payroll & Absence Mgmt, Payee Data, Assign Earnings and Deductions, One Time (Positive Input), One Time (Positive Input)	Use this page to set up reimbursements for permanent salary advances and an advances on salary (acomptes).
Positive Input - Details	GP_PI_MNL_SEC	Click the Details button on the One Time (Positive Input) page.	Specify the initial amount of a permanent salary advance in the Initial capital of the Loan field. Enter the amount of the permanent salary advance you want to recover in the Reimburs Permanent Advance field.

Setting Up Loans and Salary Advances

Access the Request Advances/Loans FRA page (Global Payroll & Absence Mgmt, Payee Data, Loans, Request Advances/Loans FRA, Request Advances/Loans FRA).

Loan

When you click the Create Schedule button, it is not possible to change any data in the Loan group box; instead, adjust data on the Amounts and Balances tabs, which are located in the Schedule group box.

Loan Identification	Enter a loan or salary advance ID. This character field is mandatory and must be unique to each payee.
Loan or Advance	Select Loan to create a loan or Advance to create a salary advance. Loan is the default value.
Period Begin Date	Enter the date that the loan or salary advance begins. This date cannot be before the next calendar ID.
Loan Initial Amount	Enter the amount of the loan or salary advance. Also specify the currency.
Payback Amount	Enter the amount of each payback installment. After you create the schedule, this payback amount populates the Amount field in the Schedule group box. The Payback Periods field in the Loan group box must remain empty if you enter a payback amount in this field.
Payback Periods	Enter the number of payback periods here. If you enter the number of payback periods, the system divides the initial loan amount by the number of payback periods to determine the payback amount in each installment. The payback amount populates in the Amount field in the Schedule group box. The Payback Amount field in the Loan group box must remain empty if you enter the number of payback periods in this field.
Pay Group	Select the payee's pay group. This field is used to generate the schedule, but it is not required.
Deduction	Displays the first free deduction element that the system assigns. If you are setting up a loan, the three possible deduction elements are RETENUE PR1, RETENUE PR2, and RETENUE PR3. If you are setting up a salary advance, the three possible deduction elements are RETENUE AV1, RETENUE AV2, and RETENUE AV3.
Create Schedule	Click this button to create the reimbursement schedule automatically. The system splits the initial loan amount into segments, using either the payback amount or the number of periods. It starts from the begin date and retrieves the different calendars available for the pay group listed. If more than one calendar has the same begin date and is available to the same pay group, the system uses the calendar that was created first; the other calendar is not used. After creating the schedule, all changes must be made in the Amounts and Balances tabs. This button is not mandatory for creating the reimbursement schedule. You can also create the schedule row by row. For example, if the payee changes his pay group, then you must manually change the schedule for each row affected.
Remove	Select this check box to remove a loan or advance from the system.
Status	Displays Removed when the loan has been created (saved) and then removed.

Amounts Tab

This tab displays the payback amounts and their associated calendar IDs.

Pay Group	Displays the pay group entered in the Loan group box. Overwrite the pay group by selecting a new pay group.
Calendar ID	Displays the calendar ID for each reimbursement. You can change the calendar ID any time that the value in the Status field is Created, Updated, or Awaiting.
Skip	Select if you want to suspend a reimbursement for the calendar period. Note. If you skip a reimbursement, ensure that the total amounts of all non-skipped reimbursements add up to the initial loan amount. In other words, when you skip a reimbursement, you must increase the amounts of the remaining payments to ensure that the full amount of the loan is paid. Or, you can add an extra monthly payment for the same amount as the skipped one.
Amount	Displays the amount of each reimbursement. The system evenly distributes the initial loan amount over the number of payback periods to obtain the payback amount for each period. The sum of all the amounts listed in the Amount fields must equal the amount in the Loan Initial Amount field. If you change the amount of one of the payments, check to make sure that all of your scheduled payments add up to the total amount of the loan. If the amounts do not equal the initial loan amount, the system does not validate the information. It also issues an error message and explains what to do to fix the error.

Balances Tab

This tab displays reimbursement balance information.

Balance

Displays the balance at the end of the calendar ID date.

Status

Displays one of these values:

Created: Appears if the schedule row has been created, but the page has not been saved; thus, no positive input exists in the system for this row.

Awaiting: Appears if positive input has been created and saved and is ready for payroll processing.

Processed: Appears if positive input has been created and the payroll is finalized. You cannot update a processed row. In order to determine whether positive input has been processed, the application reads the payroll results and checks if the pay run for each corresponding pay group and calendar have been finalized.

Error: Appears if the schedule row is not synchronized with positive input that was updated manually. In this situation, you must process a new payroll.

Updated: Appears if the row has been modified since its creation. This may happen even if positive input has already been generated. Updated appears if one of the following is true:

The calendar is changed. If previously created, the old positive input is deleted and a new positive input row is created.
The amount is changed. If previously created, the positive input is automatically updated.
A payment is skipped. If previously created, the positive input is deleted.

Note. When an amount on this page has a status of Processed, the Amount field becomes unavailable for data entry and cannot be changed or skipped.

Removed: Appears if the positive input was generated and then removed before the pay run was finalized. This status appears when positive input has been deleted. For example, when the row is created, the page is saved, and then the row is skipped, or when the loan is created, saved, and then removed.

Deleting a Loan or Advance

Deleting a loan involves two steps:

Step 1: Remove the loan.

To remove a loan from the system and cancel the positive input, select the Remove check box and save the page. When you remove the loan, the loan definition still exists, but the positive input is deleted.
Step 2: Remove loan details.

To delete the loan details, click the minus sign in the top right corner of the page.

Note. You cannot delete a loan with a status of Updated or Processed.

Updates to Loans and Advances

When an amount on the Request Advances/Loans FRA page has a status of Processed, the amount cannot be changed or removed, and the row cannot be skipped. If you need to make a retroactive change, you have to make the change directly through positive input. When an amount on the loans page has a status equal to Awaiting, a change to the row produces a warning message informing you that you must recalculate the payroll for the employee if you want the change to be recorded.

Note. If you modify a loan or advance retroactively by making changes directly through positive input, the amounts deducted won't be synchronized with the data on the Request Advances/Loans FRA page.

Setting Up Permanent Salary Advances and Advances on Salary (Acomptes)

Access the One Time (Positive Input) page (Global Payroll & Absence Mgmt, Payee Data, Assign Earnings and Deductions, One Time (Positive Input), One Time (Positive Input)).

To set up a permanent salary advance, enter the deduction RETENUE AVPE in the Element Name field with an action type of Override. Enter the amount of the advance in the Initial Capital of Loan field on the Positive Input - Details page.

To set up an advance on salary (acompte), enter the deduction RETENUE ACOM in the Element Name field with an action type of Override. Enter the amount of the advance in the Amount field on the Main Components tab.

Note. This page is documented in full in the PeopleSoft Global Payroll PeopleBook.

See Working with Positive Input.

Specifying the Amount of a Permanent Salary Advance and the Amount to Recover

Access the Positive Input - Details page (click the Details button on the One Time (Positive Input) page).

Enter the amount of the permanent salary advance in the Initial Capital of the Loan field.

To recover a permanent salary advance prior to the departure of a payee, specify the amount to recover in the Reimburs. Permanent Advance field.

Note. This page is documented in full in the PeopleSoft Global Payroll PeopleBook.

See Working with Positive Input.

Generating a Loans Report

Global Payroll for France provides a generic Loans and Advances report. This report is set up using the Generic Reports component. Access this component by selecting Global Payroll & Absence Mgmt, Absence and Payroll Processing, Create Generic Report, Generic Report.

See Also

Setting Up and Running Generic Reports

Viewing Delivered Loan and Advance Deductions

This table lists the deductions Global Payroll for France delivers to manage loan and advance reimbursements:

Name	Description
RETENUE ACOM	Advance on salary − Acompte
RETENUE AV1	Salary advance 1 − Advance
RETENUE AV2	Salary advance 2 − Advance
RETENUE AV3	Salary advance 3 − Advance
RETENUE PR1	Loan 1
RETENUE PR2	Loan 2
RETENUE PR3	Loan 3
RETENUE AVPE	Permanent advance
RETEN AVPE D	Permanent advance − departure

Note. PeopleSoft delivers a query that you can run to view the names of all delivered elements designed for France. Instructions for running the query are provided in the PeopleSoft Global Payroll PeopleBook.