Define Voluntary Deductions Using Reference Codes

Maintain voluntary deduction balances for each reference number provided. For example, when an employee has two loan deductions, you can maintain separate balances for each loan by specifying a unique reference for each loan.

Specify a Deduction Reference Code for each element entry that has arrears and total owed options enabled for the newly created element. The element template for voluntary deductions is modified by replacing the existing template questions for arrears and total owed.

These are the new template questions:

Template Question	Options
What should happen when there are insufficient funds to cover the deductions? If you enable arrears, a reference is required for each deduction entry.	Don't take partial deduction or create arrears. Don't take partial deduction, place all in arrears. Take partial deduction, but don't create arrears. Take a partial deduction, place remaining in arrears.
Do you want to stop processing when the total owed is reached? If you enable total owed, a reference is required for each deduction entry.	No Yes

If you enable the arrears option or the total owed in the above questions, the application creates a required input value named "Deduction Reference". The application uses this reference number to maintain deduction accruals and arrears. Enter the reference number while creating an element entry, such as Loan Account Number given by the bank or a financial institution when a loan is disbursed

Get Reference Code Formula

Use this formula to generate a unique reference number using a database sequence for each element entry.

You can link this formula to the Default Formula attribute in Default Entry Values and Validation Section at element level, when you don't have a reference number provided by a respective authority such as a Loan Reference Number provided by banks. For example, if an employee is contributing an amount to two different unions without receiving a reference number, but you have a requirement to capture the arrears separately for each union. You can then use the delivered fast formula Get Reference Code from the Database Sequence, which generates a unique reference number for each union element entry.

The starting value returned by this formula is 100 and increments by 1 for each new element entry. You can also write your own fast formula, such as Person Number as the reference number.

Note: Using the same reference number across entries of the same element will combine the balances.

For the elements using a Benefits module that meets one of the above conditions, you must use a Default reference value for all entries or use a formula to create a reference based on the Person Number of the employee or Benefits Plan name. This is because, when an employee is enrolled into a benefits plan, an element entry is created. When there is a subsequent life event and enrollments, it end-dates the previous element entry and creates a new entry. If you use the above delivered default formula, the balances will be re-initiated.