Processing Loans for an Employee Who Leaves 
Use
When an employee who has been granted a loan, leaves your enterprise, you must make sure that he/she has completely repaid the loan. After the employee has left your enterprise, payroll is no longer performed for him/her, making it impossible for repayment to take place via payroll. Any outstanding debts must be settled in Financial Accounting. We therefore recommend that you close the loan with a special repayment or complete repayment, before the employee leaves.

When an employee leaves the company, a message is displayed in the payroll log. The SAP System does not automatically settle outstanding balances.
Prerequisites
master data maintenance.
Procedure