In your enterprise, payroll takes place on a monthly basis. You have created a loan for an employee with the following data:

The following values are stored in Customizing for the loan type Building loan with repayment installment:

The interest for this loan is thus due in the months of March, June, September, and December.

The repayment installment for the loan type Building loan with installment repayment is also due in the months of March, June, September and December. However, the employee must only pay the first repayment installment for the loan on hand in June, as you specified May 01 as the start of repayment date. June is the first month, in which a repayment installment is due for the repayment pattern for this loan type after the start of repayment date on May 01.

Interest is calculated for each payroll period and stored in the Interest for current period wage type (/LIM). If interest is not due in the previous payroll period, it is cumulated in the Cumulated interest wage type (/LIC) until the next due date. When the interest is due, the Cumulated interest wage type (/LIC) is converted to the Interest due wage type (/LID).

In the example, the loan is paid out on January 10 of the current year. This means that only 21 days of interest accrue in this month. For the first payroll period, interest of 10,000 x 0.05 x 21 / 360 = 29.17 euro accrues (10,000 euro balance, 5% interest, 21 days interest, 360 days per year).

For the remaining periods up to the first repayment, interest of 10,000 x 0.05 x 30 / 360 = 41.67 euro accrues (10,000 euro balance, 5% interest, 30 days interest, 360 days per year).

The interest per payroll period is cumulated and due at an interval of 3 periods.

The following loan wage types arise for the first six payroll periods: