You can use this component to enter, administer and perform payroll for company loans in the SAP system.

You can grant an employee company loans for a specific purpose, for example, to build a house or buy a car. In doing so, you grant the employee an interest rate lower than the market’s usual reference interest rate. The employee’s salary provides your enterprise with security.

The amount of administration is kept low as the processing of formalities, payment of the loan, repayment and interest payment by the employee, can simply be processed using Payroll.

Loan repayment and interest calculation are automatically processed in Payroll and, according to your entries, withheld from the employee’s salary. The loan accounting data is saved together with the payroll results.

In principal, you can choose between various loan categories in the SAP system, such as installment loans and annuity loans, with different repayment types.

To simplify awarding and evaluating the loan, we distinguish between various loan types. Loan types distinguish between loans using the purpose and the loan category, for example, Building loan with installment repayment.

At least one loan condition is assigned to a loan type. The interest rate and repayment pattern for the loan are stored in this type of loan condition.

You enter all the loan data in the Loans infotype (0045).

You set up loan types and their conditions in the Loans unit in Payroll Customizing.