Advance Payments 

Purpose

Advance Payments is a common business practice in Malaysia and other Asian countries. This advance is most commonly paid before a major festival. Each company may have their own policy on how much each employee gets as an advance payment and the amount is usually recovered over a few months.

The R/3 System provides a flexible solution to process advance payments.

Features

The following options are available:

You can create different types of advance payments and define individual processing rules for each of them.

Besides paying an advance within a regular payroll run, you can also effect payments outside the regular payroll intervals.

You can define eligibility rules at the employee level as well as at the employee group level. The former always overrides the latter. This means you can rule out individual employees from receiving an advance payment that they normally would have received.

Criteria for checking the eligibility at the employee group levels are, for example, organisational units, pay scale types, ethnic origin, and job categories.

You can determine whether an advance is to be recovered in either one or multiple periods. In the latter case, you can also specify the part amount to be deducted in each period.

Each deduction is then included in payroll processing for the employee concerned.