Repayment 

Use

If you have paid a loan to an employee, he/she usually repays the amount in regular partial amounts. The loan repayment is made up of a repayment share, which reduces the loan amount paid for each loan period, and an interest share.

The type of loan repayment is stored in different loan categories. The start of repayment and repayment pattern are stored in different loan conditions.

Prerequisites

In Payroll Customizing, under Loans ® Master Data ® Create a Loan Type you have

Scope of Function

The SAP system distinguishes between the following loan categories:

In this case, the employee regularly pays a repayment installment. This installment contains only the repayment. The interest receivable is added on in every payroll period. The total amount that the employee must pay in every period, thus changes. As the term of the loan progresses, the amount gets less and less, as the remaining debt and also the interest receivable from the employee decrease.

In this case, the employee regularly pays a annuity installment. This installment contains both the repayment and the interest. The total of repayment and interest payment thus remains constant. This type of repayment is awarded on a more regular basis, as the charge to the borrower remains constant for the complete term of the loan.

In this case, you can pay the employee a certain amount on one occasion. The recurring advance is not repaid and no interest incurs. The employee must only repay the amount when he/she leaves the enterprise.

Expenses of 1,000 euro regularly incur for an employee in the external sales force. So that the employee does not have to pay this amount from his own pocket, he/she receives a one-off recurring advance of 1,000 euro. Each time expenses are accounted at the end of a payroll period, the employee is repaid exactly the amount that he spent on expenses in this period. The recurring advance is not affected by this. On leaving, the employee must only repay the enterprise exactly 1000 euro.

Activities

When you create a loan for an employee in the Loans infotype (0045), choose a loan type. This loan type has been assigned a certain loan category in Customizing. In this way, you determine the type of repayment according to which the employee must repay the loan.

Select the repayment pattern for the loan in the Loan condition field, on the Conditions tab page in the Loans infotype (0045). Specify the repayment amount in the Repayment installment or Annuity installment field.