This screen is used to create and maintain details of any employee loans that are repaid through payroll deductions. The balance of the loan, as remembered by the system, reduces as deductions are made in each payroll. The final deduction is adjusted to write the loan down to zero.
The ADD ITEM button starts the process of adding a new loan. The SAVE ITEM button saves that line item in the screen. Clicking ADD ITEM button on each occasion allows user to enter further items. UNDO ITEM cancels the current item.
To store the loan for processing in a payroll click on the SUBMIT button.
Enter a unique descriptive name for the loan.
From the drop down select the nominal ledger account in which the loan is held and to which the deduction is applied.
Enter the amount which is to be deducted at each payroll run.
Enter the amount of the starting balance of the loan.
Paid To Date
Enter any amount that has already been paid to date by the employee. As deductions are made at each payroll run, this figure will be updated and display the total amounts deducted to-date.
Balance To Pay
Enter the amount still to be paid off the loan. Usually this is starting balance less paid to date. As deductions are made at each payroll run, this figure will be updated and display the balance still to pay. This is a mandatory field.