Creating Loans in SuccessFactors

Creating Loans:

In this blog post you will learn about how to create Loans in detailed steps and what are all the objects that are referred and used.

Introduction: Loans are provided to employees based and eligibility and policy of the company and are recovered based on rules and number of instalments agreed. Let us see how we can set this eligibility and how employee can apply/view this in Employee Profile and Admin in Manage Data. Salary advances are similar to Loans, only changes could be recovery in single instalment instead of multiple and hence non-recurring deduction pay component can be used

Step1: Manage Employee Central Settings

Ensure that Advances is set as ON and since Loans and Advances require either one time or recurring deductions, Deductions Management also should be ON

Step2: Configure People Profile

Ensure that Advances section is enabled in People profile so that Employees can see and apply for Loan or Advances. In this example Advances subsection is available under Employment section, so ensure that Employment section view is available for ESS role in RBP

Check the box – Show this subsection on the profile

Step3: Manage Permissions

Ensure that Role Based Permissions are available for Manage Advances for Administrator and provide similar permission to Self-service (except Advances Admin over view)

Step4: Manage Organisation, Pay and Structures – Pay Component

Create Pay components with type one Earning (loan or advance disbursement) and two Deduction (for deducting one time or recurring from Payroll).

Similarly one Recurring Deduction Pay component (Recurring for Loan instalments) and one non-recurring Pay components are to be created

One time Pay Component for Deduction also to be created as this needs to be mapped (mandatory and may not be used for loans, but if it is one time recovery like incase of Salary advance it will be required)

Step5: Configure Business Rules

Create Business Rule in Advances Management with “Advances Eligibility Rule”

Example: If Legal Entity given in “Eligibility for Advances” is same as the User Legal Entity, then

Set “Is Eligible” as YES; “Unlimited Amount” as No; “Maximum Eligible Amount” as 12 x Basic

Step6: Manage Data – “Eligibility for Advances”

Create new “Eligibility for Advances”; Map Business rule created and Pay components – Earnings for Loan disbursement and Deduction component for recovery

Step7: Employee Profile – Advances Tile

Testing now for an Employee to see if she can request for Loan. Loan will appear with eligibility and user can select “Request Now” to apply

Eligibility for Advances view after applying Loan

Current Advances view after applying Loan

Recurring Deduction view in Employee Profile after the Loan application

“Accumulation for Advances”in Manage Data will show similar info to Admin which Employee views in “Eligibility for Advances” View in Employee Profile based on Loan requested

System will create a Non Recurring Payment in “Manage Data” for the Loan payment or advance requested

 Recurring deduction view in manage data (In case of Loan deductions)

Conclusion:

These are all the objects (and it’s dependencies) that are used in configuring Loans as mentioned in the steps above. This will also help you to understand how and where Employee and Admin can take a look at the records after Loan is created. Hope you find this blog post useful and feel free to leave your comments and will be happy to listen to your feedback!