Advance Payments
Advance Payments
Purpose
Every employee is eligible for a certain percentage of their basic pay as an advance from their Employer Company during a selected number of festivals in the year. The festivals for which the employee is eligible depends on factors such as their religion for religious festivals and so on. Any such advances paid to employees must be paid outside the normal payroll run and are later deducted from the regular payroll run.
Prerequisites
Wage types for which advance payments are possible must be eligible for entry in the infotypes Additional Payments (0015) and Additional Payments Off-Cycle (0267), otherwise they cannot be stored in these infotypes.
Define the settings using the Implementation Guide of the Payroll Malaysia component. Choose
Process Flow
To control eligibility for advance payments at employee level, you define which types of advances an employee can receive.
Use infotype General Eligibility (0374).
To calculate an advance payment for an employee, run a program that performs the necessary calculations and creates the advance payment and the respective recovery deductions as special wage types.
These must be stored in the infotypes Additional Payments (0015) and Additional Payments Off-cycle (0267), depending on whether payment is to be effected in a regular or an off-cycle payroll run.
To import the advance payment wage types into the infotypes mentioned above, a batch input folder is created. You must complete this before payroll processing for the relevant payroll periods is complete.
After the amount of the advance payment has been determined, payment is made depending on which infotype the results are stored in:
Recovery of an advance payment is performed in regular payroll runs as well.
Recovery in multiple periods is also possible.