On this tab, you can enter general information about a loan taken by employee: employee name, department, loan amount, currency, interest rate, and loan pay back period.

The required fields are: Employee, Department, Loan Amount, Currency, Interest, Income Item, Repayment Method, and Entity.

The "Loan to Employee (create)" form. The Main tab

In the Department field, select the department where the employee who takes a loan works.

In the Employee field, select the employee who takes a loan.

<Auto> in the Number field indicates that a unique code will be assigned to document when you save it. You can edit this number if needed. The From field is populated with the current date, which you can change if needed.

In the Entity field, select the legal entity of your company for which this document is created. The Entity field is available if the Multi-Company Accounting option is selected on the Administration > Settings > General Settings form. The default entity for all users can be selected on the General Settings form. Also, you can specify your personal default entity, for details refer to Personal Settings.

In the Loan Amount field, enter the amount of the loan and in the adjacent field select the currency of the loan.

In the Interest Rate field, type the annual percent for the loan. If the interest rate is not zero, make sure that the correct account is specified in the Interest Income GL Account field; also, check an income item and associated business activity in the respective fields.

In the From and To fields, specify the period for which loan is taken. The duration of the loan (in months) will be calculated automatically. If you enter the From date and duration, the date in the To field will be determined automatically. 

In the Method Maturity Loan (Repayment Method) field, you can select the method that the employee will use to pay the loan back.

Select the required method and click the Calculate button to view the calculated monthly amounts:

• Monthly with Deduction: : With this method selected, the monthly amount will be deducted from the employee's monthly salary (compensation). The Monthly Payment, Monthly Interest, Monthly Total fields show the loan body amount in the monthly payment, the interest amount, and the total amount to be paid back each month, respectively.
• Monthly processing: The employee's loan will be listed on the Loans tab of the Payroll Calculation document for the pay period which has the same currency as the loan. The interest amount to be paid in the pay period will be calculated on the Loans tab. The monthly interest amount and repayment amount will be listed on the Accruals and Deduction tab as deductions from the employee's monthly salary (compensation).

• Monthly without Deduction: With this method selected, the monthly amount will be paid by employee by a cheque, cash payment, or bank payment. The Monthly Payment, Monthly Interest, Monthly Total fields show the loan body amount in the monthly payment, the interest amount, and the total payment amount (respectively) to be paid back each month.
• Monthly processing: The employee loan will be listed on the Loans tab of the Payroll Calculation document for the pay period which has the same currency as the loan. The interest amount to be paid in the pay period will be calculated on the Loans tab.

• Lump Sum. With this option selected, the loan total (the principal and the interest amount) will be paid by the employee on the return date. The Total Interest and Total Payment fields will show the total interest and total loan repayment amounts.

In the Comment text box, you can provide any additional information that is relevant to this loan.

The toolbar buttons

After filling out the form, click the Save button to save your work, or Post to save and post the loan document, or the Post and close button to save the document, post it, and close the form. 

To generate a payment in the system for the loan received by the employee, click the Generate button and select one of the following payment types:

• Check Issued
• Bank Payment
• Cash Payment

The payment documents will be generated in the currency that was selected for this loan. For description of other buttons,  refer to Document toolbar.