How To Manually Add Loan Deduction

This guide explains how to create a loan entry for an employee in the Payroll system. Let's look at the steps:

Step 1: Open Loan Creation

Navigate to the Payroll menu, select Loans, and click the Create button.

Step 2: Select Employee

Select the employee for whom you want to create the loan. The employee code will be filled automatically after selection.

Step 3: Enter Loan Details

Select the loan type. Optionally, enter the loan number if needed.

Step 4: Set Loan Dates

Select the granted date of the loan, the effective date (start date of deduction), and the maturity date (end date of the loan). The system will automatically fill out the number of months for the loan.

Step 5: Enter Loan Amounts

Enter the loan amount or loan with interest, and the principal amount or the original amount. You may also specify the original loan amount.

Step 6: Add Previous Payments

If the loan is new, you can leave Previous Payment as 0. If the employee already made payments, enter the amount here.

Step 7: Set Payroll and Amortization

Select Regular as the payroll type and choose the amortization frequency for the loan deduction. For weekly payrolls, select the appropriate cutoff (e.g., first cutoff, second cutoff, week one to week five).

Step 8: Enter Amortization and Remarks

Enter the amortization amount (deduction amount). Optionally, add promissory note remarks and set the status to Open.

Step 9: Save the Loan Entry

You can update the status later to Close or Post if needed. Click Save Changes to complete the process.

The loan deduction is now successfully created for the employee.