Loans Enhancement - India 
Purpose
This component explains the additional Company Loans features for Payroll India.
Features
· Modifications to the Loans infotype (0045)
The following options have been added as conditions of the Loans infotype (0045) for India:
¡ Tranche
¡ Penal Interest Simulation
· Reports
¡ Loans Summary report (HINCLON1)
¡ Batch Program for Penal Interest (Loans) report (HINILON0)
¡ HR_IN_LOANS_VALIDATE
¡ HR_IN_PENAL_INTEREST
· Calculate Interest Rate Advantage as Perquisite
Interest Rate Advantage on Company Loans as Perkpayroll function (INLON) calculates Interest Rate Advantage, if applicable, on all loan types for the employees for whom you are processing the payroll.
¡ For a loan type, you can configure Loan Conditions such as:
§ The Debit and Reference Interest Rates
§ Whether the system should calculate the Interest Rate Advantage
To configure this, go to the IMG under Payroll India ® Company Loans ® Master Data ® Create Loan Conditions.
¡ If you have configured the system to calculate the Interest Rate Advantage, Interest Rate Advantage on Company Loans as Perk payroll function (INLON) calculates this Interest Rate Advantage.
¡ You can configure the Taxation of interest rate advantage rule (INJ2) for this Interest Rate Advantage to cumulate in:
§ Loan-Int. Rate adv Taxed wage type (/3J1), if you want the Interest Rate Advantage to be taxed.
The value of Loan-Int. Rate adv Taxed wage type (/3J1) is then cumulated in Annual Perk wage type (/127).
§ Loan-Int. Rt adv notTaxed wage type (/3J2), if you do not want the Interest Rate Advantage to be taxed.
To configure this rule, go to the IMG under Payroll India ® Company Loans ® Calculation ® Interest Rate Advantage Taxation.
See also: