Advance Payments 
Advance Payments
Purpose
Advance Payments are a common business practice in Singapore and other Asian countries. This advance is paid before a major festival. Each company can have its own policy on how much each employee receives as an advance payment and the amount is recovered over a few months.
The SAP 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 processing rules for each of them.
Besides paying an advance in a regular payroll run, you can also effect payments outside the regular payroll intervals.
You can define eligibility rules at employee level as well as at employee group level. The former always overrides the latter. This means you can exclude certain employees from receiving an advance payment that they normally receive.
Criteria for checking eligibility at employee group levels are, for example, organizational units, pay scale types, ethnic origin, and job categories.
You can determine whether an advance is to be recovered in one or in 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.