Company Loans: National Features South Korea 

Definition

In South Korea, the customer may need to deduct employees’ repayment installment for a certain loan from employee’s bonus received. But the standard loan function only allows to repay installment via the regular payroll run.

 

With Korea specific loan function, you can repay installment of loan via off-cycle payroll run. In general, the repayment will be done in periodic bonus that employees are paid every two months or every six months, which is depending on company’s policy.

 

Use

In the Company Loan Infotype 0045, one additional field for South Korea specific loan function is created. It is under the selection of Conditions:

 

·        Repayment installment in off-cycle

 

With this field, you can specify the loan installment amount that an employee needs to repay when he or she gets a periodic bonus payment for example, which is to be performed via the off-cycle payroll run.

 

Integration

To run Korea specific loan function successfully, you need to configure several customizing tables. The detailed information can be found in Customizing for Payroll: South Korea under Loans.

 

·        Define Pay Date

 

You need to define loan related value date as pay date for your payroll area under the Customizing for Payroll South Korea ® Loans ® Calculation ® Adjust Value Date.

 

·        Reason for Off-cycle Payroll

 

Among various off-cycle types, periodic bonus and non-periodic bonus are often used for Korea specific loan function. To maintain the off-cycle payroll type, you go through Customizing for Payroll South Korea ® Loan ® Define Korea Off-cycle Reason for Repayment.