How to adjust Salary Advances

[Number13]

Hi everybody,

Please anybody wld tell me wat to do with the advance if any employee is taking from office and which will be deducted from his/her salary at the end of the month. How these kind of advances wld be adjusted in R12. Please tell me its urgent.

Thanks.

[eng_ahmad_2007]

Dear,

Could you explain your question in more detail?
Are you talking about the standard functionality (Advance Payment)?

Regards,

[Number13]

Dear Ahmad,

The issue is in our company there is a provision under which employee can take some advances against their salary and that advance will be deducted from his/her salary at the end of that month. Means he/she will be getting salary less by the amout equal to the amount of advane he/she has taken in that month.

Now I need to know the solution How to adjust that advace with his salary. What and how setup can be done in Oracle Payroll R12?

Thanks

SATYA

[m_muzamil_khan]

Hi Satya,

you need to define a deduction element and attach it with your payroll.

For example:

define the Loan Recovery Element:



For example if employee getting advance 2000, and plan to deduct it for 4 months installment then following will be the setup:

This loan recovery element deduct 500 per month for 4 months installement.

Attach this deduction element to the employee Element Entries like this:



when the month payroll will run then 500 will be deduct from his salary.

Is it Enough or you need more detail about Loan Recovery?

Regards,
Muzamil Khan

[eng_ahmad_2007]

Dear Satya,

As Muzamil Khan explained, you need to:
1) Setup a deduction element to recover your loan.
2) Create the element link.
3) Define a Formula for processing.
4) Link to Formula Results.
5) Enter the element to Employee Element Entries Screen

If you need any further explanations, do not hesitate to post.

Regards,

[Number13]

Hi,

First I wld like to thank both Mr. Muzamil and Mr. Ahmad for your support on this issue.

My company charges simple interest for few advances and for few there is no any charge. Now how can I apply interest charges on a particular salary advance. Interest rates may be different for same employee for different kind of advances.

Regards,

Satya

[chavezkhan]

<font color="blue">dear Staya
All people told u right solution , in ur scenario u can make another input value as Interest Rate ( which will be processed in formula ) and willbe entered at the time of entry of principal amounte e.g. Amoutn 25000 , interest rate 1.5

Need clarification , so ask freely .... GOOD LUCK !</font id="blue">
<font color="maroon">Thanx
Shawaiz Khan -- Pakistan</font id="maroon">

[Number13]

Dear Ahmad,

Thank you very much. Sure if I wld be having any issue ERP stuff will be my 1st priority to seek for solution.

Thanks once again,

Satya