If the loan repayment amount is fixed and if Great West has a policy of Deduct zero or full --> which means for example - if employees gross 1000USD , Taxes is 300 USD , pretax deduction is 275$ and say employee has taken 400$, then the possible net pay is 25$. Regular 401K loan per pay period is 50$.
1. If great west wants 401K loan deduction to deduct as much as possible, then SAP will recover 25$ this period and net pay will be zero. The balance 25$ will written in arrears table. So in the next period's payroll it will deduct 25$ + 50$.
The arrears amount will vary depending on the money the employee has left.
2. If the Great west wants to set up the 401K loan as - deduct all or nothing (deduc zero or full). Which means in the same example...if employee has left with only 25$ before 401k deduction, then SAP will not recover the 25$ because it try to deduct full 50$ or nothing. 25$ will be paid as net salary. 50$ will be written in arrears.
In next period 50$ + 50$ will be deducted. To set this
go to SM30 , type table name V_t51p6 set it 6 in arrears and 1 in retro. Please create this entry with proper dates.
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