Understanding Loan Deductions

Before you can enter and process payee loans, you must:

• Define loan types for your organization.

• Set up the processing structure to include loans.

  Global Payroll for the UK delivers a loans section that is included in the delivered payroll process list. You can use the delivered structure or create your own sections and process lists.

These two deductions are used to process loan repayments:

• LOA DD LOAN (employee loan).

  Use this deduction for the normal loan repayment. This deduction is only processed if you enter loan information for a payee on the Employee Loans page. You can override the deduction amount using positive input (with supporting element overrides).

  For payees with more than one loan, the payroll process resolves the deduction multiple times. Multiple resolution is described in the PeopleSoft Global Payroll product documentation.

• LOA DD EXCEP (loans — exceptional repayment).

  Use this deduction for processing exceptional loan payments. An exceptional payment reduces the loan balance but is not deducted from net pay.

The PeopleSoft system delivers a query that you can run to view the names of all delivered elements designed for the United Kingdom. Instructions for running the query are provided in the PeopleSoft Global Payroll product documentation.