Procedure

Use the following procedure to create a deduction that you can use for a reducing balance loan.

1. Navigate to Organisation | Entitlements | Deductions.
2. Press Insert to add a new deduction.
3. Type a Code and Description for the deduction.
4. In the Type combo box on the Details (i) tab, select D. Standard deduction.
5. In the Reducing balance combo box, select Yes.
6. Click the Details (ii) tab.
7. In the Direct credit combo box, select Yes (unless the deduction will be excluded from the Direct Credit Schedule).
8. In the Full amount only combo box, select one of the following options:
   • Yes

     If the employee has insufficient pay to pay the full amount, then the payment is not deducted.

   • No

     If the employee has insufficient pay to pay the full amount, then part of the payment is deducted.

9. In the Amount or rate field, type the dollar amount to be deducted.
10. Click the Details (iii) tab.
11. In the Calculation method combo box, select F. Fixed Amount.

See also

Reducing Balance Loans.