Advance Payments
Advance Payments
Purpose
Advance Payments is a common business practice in Malaysia and other Asian countries. This advance is paid before a major festival. Each company can have its own policy on how much each employee receives as an advance payment and the amount is recovered over a few months.
The SAP System provides a flexible solution for processing advance payments.
Features
The following options are available:
You can create different types of advance payments and define processing rules for each of them.
Besides paying an advance in a regular payroll run, you can also effect payments outside regular payroll intervals.
You can define eligibility rules at employee level as well as at employee group level. The former always overrides the latter. This means you can rule out individual employees from receiving an advance payment that they would normally receive.
Criteria for checking the eligibility at employee group levels include, for example, organizational units, pay scale types, ethnic origin, and job categories.
You can determine whether an advance is to be recovered over one or multiple periods. In the latter case, you can specify the amount deducted in each period.
Each deduction is included in payroll processing for the employee concerned.