Loan Deduction from Leave Encashment and Bonus.

[Former Member]

Hi Experts,

Need you help.

My Client want the Loan deduction to happen from Leave encashment and Bonus paid to the employee. Please help.

Eg: If any has taken a loan of Rs. 50000 in the month of November then during the leave encashment paid to the employee in the month of January system has to deduct the Max loan amount form the leave encashment the employee is getting the same thing should happen during the bonus payment also.

[Sujith_EM]

Please give information on these...

1. How you paying the loan amount to the employee, is it through SAP HCM or outside SAP ( especially posting ) ?

2. Is the eligibility of the loan based on Leave encashment or bonus amount ?

3. Do you want to deduct the maximum amount from Leave encashment  ( Deduct the amount from Leave encashment  is leave encashment  amount is less that the loan amount , then deduct from Bonus ), then from Bonus?

[Former Member]

Hi Sujith,

1. The loan will be paid to the employee through payroll.

2. No eligibility for the loan is defined on Leave Encashment or Bonus

3. Yes, I want to deduct the maximum amount from Leave encashment or  Bonus.

Leave encashment is given to the employee in the month of January if the loan amount is less than the Leave encashment deduct what ever the amount is remaning as Loan if it the laon amount is more than the Leave encashment deduct the max amount form Leave encashment.

Bonus is given in the month of October, If the loan amount is less than the bonus amount dedcut the total amount whatevr is remaining. If the loan amount is more than bonus amount dedcut the max amount from Bonus.

[Sujith_EM]

Some more ... to clarify the requirement ...

Does the deduction should happen everymonth ? or Deduct if there is leave encashment ( January ), if balance is there deduct from Bonus( october ) , if balance is there deduct the whole amount ( which month or it should be deducted monthly ).

[Former Member]

Hi Sujith,

Deduction of Loan will happen every month. In case of Dedcution from Leave encashment system has to check the month January(the month when the leave encashment is paid to the employee) and apart from the regular deduction it has to deduct amount from Leave encashment also(max amount should deduct as to decrease the Loan balance if the loan amount is lesser than the leave encashment entire amount can be deducted form the leave encashment and can close the loan if not the loan continues and in the month of october (where the bonus amount is paid to the employees) even the loan exists for the employee then system has to deduct it from Bonus.

[Former Member]

Hi,

It can possible through PCR..

you need to define business properly in Configuration, PCR and Schema.

[Former Member]

Hi Sir,

can you please give me some idea as how to write the PCR and configure in the system.