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Prepaid Deduction Processing 

Use

You can now offer your employees the option of 'prepaying' some of their deductions when they go on leave. Use Prepaid Deduction functionality to:

• define which deductions employees can prepay in your company

• store prepayment amounts per employee and deduction

• automatically deduct amounts from an employee's prepaid deduction balance if the employee's normal pay is not sufficient to cover the deduction

Effects on Customizing

To use Prepaid Deduction functionality, you will have to modify the following settings in the US Payroll Implementation Guide (IMG):

• Copy model wage types for prepaid deductions. This is done is step Copy wage types for prepaid deductions

• Link together your copied wage types for prepaid deduction processing. This is done is step Link prepaid deduction wage types

See also

For more information about Prepaid Deductions, see the SAP Library: Human Resources -> Payroll (PY) -> PY-US United States Payroll -> Deductions -> Prepaid Deductions.