Summary

The Details tab page:

• Contains information about a reducing balance loan, such as the principle amount, loan reason and advance date.
• Should be completed in conjunction with the Repayment Details tab page.

Calculating Interest

The interest value of a transaction is calculated as:

Loan Balance * Interest % / Number of Pay Periods annually

When Recalculate is set to "Yes" in Permanent transactions, the interest value is deducted from the repayment amount of a loan transaction for a reducing balance loan.

Fields

Principle:

Total amount of the loan.

Loan Reason:

Mandatory field that contains the reason for the loan.

Advance date:

Date that the loan was advanced to the employee.

Interest %:

Interest rate for the loan.

Interest deduction code:

Select a Deduction code to display the loan's interest in the employee's pay. This code can not be a reducing balance deduction or the same deduction code as the loan.

See also

Employee Loans