Managing Loans and Advances

Menu Path : Payroll > Employee Details > Update Loans & Advances Tab

Accessible to : Payroll Manager

EazeWork HRMS provides a feature to manage loans and salary advances which are given to employees. From this tab you can create loans for all employees (currently only loans without perquisite are supported). 

- refer to article on Requesting a loan for details on how an employee can submit a new loan / advance request
- refer to the article on Loans with perquisite for details on how perquisite loans are managed

1. New Loan Creation

- Click on "Create New Loan" and provide the details as shown in the popup below

Fill up the details as shown in the popup. All the fields need to be updated.

Note : Only Salary Advance can be given to Retainers and Trainees, all other loans are available to only Regular employees.

2. Loan approval

Loan approved workflow can be designed in payroll setup. Loan requests pending for approval can be accessed by approvers on Work Area > Approvals page. Refer article for more details.

3. Loan disbursal

After a loan is approved it needs to be disbursed by the Payroll Manager. Loans pending for disbursal can be accessed from Work Area > Activities tab. System will stop the Payroll Manager from processing payroll if any loan is pending for disbursal for the payroll month.

-Disbursement month is the month in which loan has been disbursed. This cannot be in the previous financial year.
- Recovery starting month is the month from which the recovery will be started.

Note :
- All the details can be edited or loan can be deleted by the payroll manager before deduction is started

 -  If loan starting month is less than first payroll month we cannot delete or edit even if payroll has not been run
- Any unpaid loan comes as outstanding amount during the Full and Final process
- Loan creation or Instalment change request created from this tab by payroll manager does not go for approval even if there is an approval workflow in setup
- If employee wants to pay full or part of the loan amount outside the payroll you can update the details, refer to the article on Updating Prepayment of Loan for more details.

4. Changing Loan Instalment

Once the deduction of a loan has started in payroll then loan cannot be edited. Instalment can be changed through the Instalment change process. To do so click on "Change Instalment" button as shown below.

You will be able to update the revised instalment details as shown below.

Any change you make in the instalment using this process will be implemented from next payroll and will be used till the Upto Month. After which the old instalment will be used. The updated instalment will be visible on the table immediately if created by Payroll Manager.

You cannot reduce the instalment to an amount which causes the number of instalments to go more than 120. If you want to stop deduction you can change the instalment to zero for some time.

Employee can request for instalment change, refer to article on Changing monthly loan instalment for more details.

To understand how instalment change is handled, consider the following example -

Suppose Instalment = 2000 per month for a loan, deduction start from April-16 and the net amount to be recovered is 10,000, payroll has been processed till July-16. System will deduct Rs 2000.00 month in Aug-16, Sep-16, Oct-16, Nov-16 and Dec-16.

But if Instalment is changed to 1000 upto Sep-16 then system will deduct Rs 1000.00 for Aug-16 and Sep-16 and from Oct-16 onwards the old instalment of 2000 will start getting deducted.

5. Bulk Updation of Loans

If you want to update multiple loans you can use the "Bulk Upload" button to download an excel. Fill up the excel and use the "Upload" button on the popup to upload the excel.

System will check the data for completeness and accuracy. You would be able to download and see errors if there are any.

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