Step-wise Employee Loans configuration
Hope every one doing well, i want to share one document for Employee Loans configuration. i know every one knows how to configure, please treat this document as a reference and give your valuable suggestions.
1. Adjust Value Date
Table no. V_T506S
Here, for your payroll area you have to define Value date
2. Specify Interest Calculation Method
Here, you have to specify the Interest Calculation Method to your country grouping / respective groupings
3. Maintain Loan Types
Table No. VV_T591A_4_VC506
Here, you have to maintain the Loan types and conditions for Interest calculations
4. Maintain Loans Eligibility Checks and Limits
Table No. V_T7INJ3
Here, you have to maintain the Eligibility check for the loan types
5. Maintain Loans Grouping
Here, you have to link the Loan eligibility to Loan Types
IT 0045 – Loans
1. When Employee in Full LOP for the Month.
The solution is depends on the Client Requirement, whether he want Carry forward the Deduction amount to the next payroll period or completely waved off the Regular Repayment and Interest too for the LOP and increase the Regular Repayment one month extra.
Carry forward scenario:
1. Need to change Wage type Arrears Characteristics table V_T51P6
No Deduction Scenario:
1. No need to change any Wage type arrears table.
2. Need to change loan type for installment for that particular period is 0.
3. Extend the Regular Repayment one month more or change the installment amount.
Thanks and Best Regards,
what in case of custom specific loans ? what happens to LRP in case if employee goes full month LOP ? Can you let document those two things along with some other issues mentioned in the previious threads that would be great
Thanks for suggestion 🙂
Custom specific loans - it depends on the conditions of Interest rates, Interest method calculations, Interest cycle and Payment cycle. these are client specific requirements.
About LRP i will update those ASAP
Can we define in the system, saying like at the end of the loan installment deduct the Cumulated interest.
Note : Every month interest should not come.
Ex: In April, granted amount is 100 rps with 2 installments. My question is for 100 rps Cumulated interest should calculate in the may period. How to achieve this one?
Thanks for sharing a helpful document, I would like to know how to integrate loan payments to payroll, I am able to create loan type and able to create a loan record in Infotype 45, but when I am running the payroll it is not deducting from payroll. I would like to now how we can do this? is there any PCR change please do needful.
Thanks & Regards,
Check the standard loan wage types with /L** are processing or not ?
I have checked in payresult, but there is no wage type available starting with /L series. is there any problem in my configurations? kindly do needful
Thanks for support My issue is solved, I did a mistake in configuration. Now it is working fine.
Link: Loan Recovery through Regular payroll_Indian PY
Hi Praneeth ,
nice documents from you , Really appreciate you in this ...gr88 work well done..
Nice document. Appreciating effort to help others!!
where can i see principle amount?
I would like to know the remaining amount to be paid I would like to know If iam configuring loan suppose for example Employee loan is for 5 years how do i do that
After maintaining the tabs Basic data, Conditions & Payments click on the button "CREATE REPAYMENT PLAN (F8) " it will show the no. of months according to the repayment value and interest for every month.
Thanks for sharing good document as you said it will show the repayment value and the interest for every month as below.
T Code: PA30
After you execute it will show a clear record like below.
Thanks & Regards,
Thanks for the document on Loan
Can u please clarify this:
There is a requirement on which the employee status is inactive - on leave, so payroll is not run but the payment is shown in Remuneration statement.
August the Payroll is not run but repayment is shown in Payslip
Please provide your inputs on this.
HI Sai Shiva,
As Praneeth said in this document you can follow below steps,
1) Change loan type for installment for that particular period is 0.
2) Extend the Regular Repayment one month more or change the installment amount, then it will work.
I was wondering is it possible to use "V_T7INJ3" (maintain eligibility checks) and feature 40LGR for "other countries / International Payroll" as well or not?
Can you also please specify in your document, if we have different loan types, then it should get triggered in different wage type and posting for the same to be done in different GL's? This will become very helpful document for future reference in that case.
Also, I had come across a requirement, wherein user wanted to post these different type of loan in their respective GL's in the particular employee vendor account. Is this possible?
As you suggested for Loan payments posting to different G/L. check in the below document
Employee Loan payments Posting to Different G/L Account's
Table V_T7INJ3 and Feature 40LGR is belongs to country grouping India (40). check for your country Loans configuration nodes you may find some.
I am working with the international grouping 99; Is there anything we can use to get the same functionality?
you can do same in the Node payroll - international - loans and go with feature INTLO with Decision operation Country grouping, loan type, loan condition.
Thanks for the input but how can we limit the system to check the loan payment amount against the employee assets for example gratuity and Provident Fund. Is it possible or should be use ABAP ?
Hi SAP Guru's,
Please help on the below:
An employee has availed loan of Rs.100000/-, and deduction of Rs. 10000/- is started from Aug 2014, now the employee wants to the EMI to reduced to Rs. 5000/- with effective 01.11.2014.
When i make changes in IT 0045 instalment amount Rs.5000/-, system is making the changes effective 01 Aug 2014.
My query is, installment deducted till Oct 2014 should not change.
for this you have to close the loan by 31.10.2014, and create new loan from 01.11.2014 on-wards for the remaining amount with 5000/- installment.
requesting you open a question,
Actually i delimited the loan as on 31st Oct 2014 and created a new loan with Rs. 70000/- as opening balance, and run the payroll but iam getting below error:
Loan ends on 30.10.2014, although the loan was not completely repaid in period 07. Extend the validity period for this loan, or increase the repayment or special repayment in the period.
you are not suppose to delimit the loan, in the payment tab give the date 31.10.2014 and payment type 0200 - spl. repayment (external) and give the remaining amount. and run the payroll live. then create new loan for remaining amount.
Continuation to your response, if we close the loan amount,how do we treat the remaining loan balance amount. Do we have to show it as the remaining loan amount has been recovered from the salary and again re issue the loan, but our finance team doesn't accept for it.
Cant we adjust with existing loan.
Provide your valuable input.
Can you please elaborate.
Thanks for ur support.
As suggested, In Payment tab changed the date as 31st Oct 2014 and selected 0200 - Special Repayment (external) and entered the remaining loan amount 70000/-, saved it and run the payroll, its working fine.
Later i created new loan account with the remaining amount saved and rerun the payroll, but system is not deducting the new loan amount 5000/-.
pls let me know where am i going wrong.
I could identify where i was wrong and rectified.
Actually i missed to enter the details in Payments tab, i.e., loan start date, payment type- Loan Repayment (external) and amount.
Entered the above and rerun the payroll.
Its working fine,
Highly appreciate your kind support in resolving this.
In case of LOP for full month How it is going to process Please let me know
You can go with priority deduction T51P6 table. but best way to change the repayment start date by copying the current record.
Suppose if i give lop for 1 month that is on 01.01.2014 for full month i have to copy and change repayment start date
In the document Scenario 1 is LOP scenario.
and given 2 suggestions ie., carry farword scenario and No deduction scenario
check these and try for your requirement.
Did I change any thing in schema
Kindly Advise .
praneeth kumar m
I am not able to control the periodicity of loan deduction using payment model.
Below link will take you to further details -
Payment model not working for LOAN functionality | SCN
Thanks in Advance.
Do we need to post that first month loan amount if yes then what will the accounting entry for both months