Processing Loans

Loan deductions are calculated and processed in the normal payroll process. Loans are a post-tax deduction and processed after statutory deductions for tax, National Insurance (NI), court orders, and student loans.

Loan processing checks:

• For loan repayment holidays.

  If there is a repayment holiday defined within the pay period, the loan isn't processed. When you view payee messages you will see the message "Loan Repayment Holiday detected (17135,422)"

• Whether the loan has been repaid or stopped.

  If the loan has been repaid, the employee terminated, or the loan stopped, you will see the payee message "Last repayment made this period (17135,423)"

• For positive input entries.

  The system checks whether positive entries for loans are for loan IDs that are being processed in pay period. If a positive input entry is for a loan ID that will not be processed in the period, you will see the payee message "Positive Input for Loan Id %1 incorrect (17135,424)"

The system writes the amounts processed for the pay period to a writable array. You can view the data in this writable array using the Review Loans GBR page.

See Viewing Payees' Processed Loans.

After you have run and finalized payroll for the pay period, you need to run the Update Loan End Date application engine process. The purpose of this process is to update the employee loans table with a loan end date when loans have been repaid.

Employee loans use one loan deduction, LOA DD LOAN, to process loan repayments. A driver accumulator generates multiple resolutions of this deduction.

Multiple resolutions of the loan deduction, LOA DD LOAN, are driven by the accumulator LOA AC LOAN DRV. This accumulator has two user fields:

Loan deductions are calculated and processed in the normal payroll process. However, the payroll process does not update the loan end date that determines whether the loan is processed in the next pay period.

After you have run and finalized payroll for the pay period, you need to run the Update Loan End Date application engine process (GPGB_LOAN). The purpose of this process is to update the employee loans table with a loan end date when loans have been repaid or loan processing or the employee is terminated. The process checks the most recent finalized payroll results for employees with active loans. If a loan has been repaid or the employee was terminated in the pay period, the process inserts a row in the employee loan table with a Stop Loan reason and populates the Loan End Date field with the pay period payment date. The next time you run the payroll process, the employee loans that have an end date are not processed.

You can run the process manually or schedule the process to run at regular intervals automatically.

Payroll administrators can use the Update End Date button on the Employee Loans page to perform the same function as the Update Loan End Date process for an individual payee.

Use the Update Loans End Date GBR page (GPGB_RC_LOAN_UPD) to run the Update Loan End Date application engine process (GPGB_LOAN).

Navigation:

Global Payroll & Absence Mgmt > Absence and Payroll Processing > Update Loans End Date GBR > Update Loans End Date GBR

When the Update Loan End Date process has completed, view the message log to see which employee loans have been updated. The log lists the employee ID, loan ID, loan type and the end date.