Goto SPRO, Payroll and PY-IN or whichever the country is:
> Company Loans
>> Master Data
>>> Maintain Loan Types
Select the loan subtype and click
on the "Technical attribute" and it should be "Annuity loans".
Read the details below:
NOTE:
If this loan types are already
in production and deductions have already happened. I would recommend to
test both scenarios - changing the "Loan Attribute" in current loan type
and find out if it adjusts the old deductions.
or
Create a new loan subtype and assign correct loan attribute as "Annuity loan". Then migrate the master data in production from current loan type to new loan type.
If it is not in production yet,
just change it.
Use
Choose one of the following loan types:
Annuity loans
The total of repayment and interest payment remains constant for this loan type. When the loan continues to be repaid, the repayment share increases and the interest share decreases.
Installment loans
In this case, the repayment total remains constant. The interest is added in every period, but decreases when the loan continues to be repaid.
Recurring advance
In this case, a certain amount is paid to the employee. The recurring advance is not repaid, and no interest incurs. The employee only has to repay the amount when he/she leaves the enterprise.
For example:
Expenses of 1000 EURO regularly incur for an employee in the external sales force. So that he does not have to advance the amount from his own pocket, he regularly receives a recurring advance of 1000 EURO. When expenses accounting is performed at the end of a payroll period, the employee gets back exactly the amount which he spent on expenses in this period. The recurring advance is not affected by this. The employee only has to pay the 1000 EURO back to the enterprise when he leaves.
