Employee Payroll Loan
Employee Payroll Loan is how a loan actually gets repaid. It gathers every installment that has fallen due by the end of the pay period, lets you say how much of each to recover this month, and raises the deduction for the payroll to take.
What it is for
A loan record carries a schedule: twelve installments, one a month. Nothing on that schedule comes off anybody's pay by itself. This screen is the step that makes it happen, once per period, for everybody at once.
What it collects is the important part, and it is worth saying precisely. The installment charged in a run is the one whose installment date falls on or before the end of the pay period of the cycle being run. So an installment dated 5 January is collected by the January period, and so is an installment dated 20 December that nobody collected last month. Nothing is lost by missing a month, it simply turns up next month alongside the current one.
The lines come up filled. Each line is one installment of one loan for one man, showing what the installment is worth, how much of it has already been recovered, and what is still outstanding. You type what to recover this month into Clearing. Normally that is the whole balance, and normally you leave the lines exactly as they come up.
On save the screen raises an Employee Additional Payment Or Deduction document carrying one line per non-zero clearing, on the wage type named on the loan type, for the period of the pay cycle you chose. That document is what the payroll deducts. When an installment's balance reaches zero it is marked cleared and stops appearing here.
If you delete this document, the installments are un-cleared and the deduction document is deleted with it. So a mistake is recoverable as long as the payroll has not been run.
One warning for a client running more than one payroll cycle. A period name does not identify a period on its own. A monthly cycle and a weekly cycle can both carry a period that starts on the first. Always set the Pay Cycle before the Pay Period, on this screen and on every other screen that asks for both.
Every field, in plain words
Basic Data
| Field | What it means | What to put in it | Notes |
|---|---|---|---|
| Transaction | The document number | PYEL-000056 | Required. It numbers itself |
| Transaction Date | The date the document is raised | 02 Jan 2026 | Required |
| Pay Cycle | Which payroll cycle to collect for | MONTHLY | Required. Pick it from the Payroll Cycle list. Set this before the Pay Period |
| Pay Period | Which period of that cycle | DEC-2025 | Required. Pick it from the Payroll Period list. The end of this period is the cut-off date for which installments are collected |
| Pay Scale | Collect for one pay scale only | Grade 4 | Optional criteria |
| Pay Area | Collect for one pay area only | Factory | Optional criteria |
| Pay Channel | Which pay channel to collect on | PRI | Optional. PRI Primary and SEC Secondary. It is matched against the pay channel of the loan type's wage type, so a client running a second channel can keep loan recovery on the main pay run only |
| Criteria | The saved criteria used when the screen pulls the lines in | Leave it empty | Optional |
| Notes | Anything the next person needs to know | December loan recovery | Optional. It is copied onto each line as its line text |
Detail
| Field | What it means | What to put in it | Notes |
|---|---|---|---|
| Line # | The line number | Fills itself | Leave it |
| Employee | Whose loan this is | Tariq Javed | Fills itself. Leave it |
| Name | The employee in words | Tariq Javed | Fills itself. Leave it |
| Schedule Date | The date this installment fell due | 05 Dec 2025 | Fills itself from the loan schedule. Leave it |
| Loan Type | Which loan this installment belongs to | ADVANCE | Fills itself. Leave it. It is also where the deduction wage type comes from |
| Loan Amount | What this installment is worth, interest included | 12,500.00 | Fills itself from the schedule line. Leave it |
| Cleared | How much of this installment has already been recovered | 0.00 | Fills itself from earlier documents. Leave it |
| Clearing | How much to recover this month | 12,500.00 | The only figure you type. It cannot be negative and it cannot be greater than the installment amount. Zero means recover nothing this month |
| Clear Balance | A tick on the line | Leave it as it comes | Recorded on the line. The recovery is driven by what you type in Clearing, not by this tick |
| Balance | What is left on this installment after what you are clearing | 0.00 | Works itself out. When it reaches zero the installment is marked cleared and will not come up again |
| Line Text | A note for this line | December loan recovery | Fills itself from the document Notes. Change it if a line needs its own explanation |
How to configure it
- Make sure each Loan Type names a wage type. The deduction cannot be written without one, and that wage type must be a Credit wage type or the money will be added to his pay instead of taken off it.
- Open the screen and set the Transaction Date to today.
- Set the Pay Cycle, then the Pay Period. In that order, always.
- Set Pay Channel if the client runs more than one, otherwise leave it.
- Let the lines come up. Read down the Clearing column and leave it alone unless somebody has a reason to skip or reduce a month.
- Save. The deduction document for the period is raised for you.
- Open Employee Additional Payment Or Deduction for the period and check it before running the payroll.
Scenarios
A loan installment should skip one month
Set that line's Clearing to zero and save. Nothing is deducted from him this month and nothing is lost. The installment is not marked cleared, so next month it comes up again next to the new one, and that month he pays two. If the client wants the loan genuinely extended rather than caught up, change the schedule on his Employee Loan data record instead.
We only want to recover half this month
Type half into Clearing. The installment is left part cleared, the Balance shows what is still owed on it, and the remainder comes up again next month. Nothing has to be re-typed.
Nobody ran this screen for two months
Run it for the current period. The cut-off is the end of the period, so every installment still outstanding from the two missed months comes up as well as this month's. Each man then has three lines. That is the client's decision to make, not the screen's: if taking three installments at once would leave somebody with nothing to live on, set the older lines' Clearing to a part amount.
A man is leaving and still owes on a loan
Do not try to collect it here. Final Settlement picks up every loan of his with installments not yet cleared, one recovery line per loan document, at the total of the installments still open.
We ran this screen then found a mistake
Delete the document. The installments are un-cleared and the deduction document it raised is deleted with it. Do that before the payroll for the period is run.
What it is connected to
- Needs Employee Loan data records with installment schedules, a wage type on each Loan Type, and the Payroll Cycle with its periods.
- Writes an Employee Additional Payment Or Deduction document, which Payroll deducts.
- Final Settlement reads the same uncleared installments when a man leaves.
- Deleting this document un-clears the installments and removes the deduction it raised.
If something looks wrong
- "It says the pay period was not found" - the period does not belong to the pay cycle you chose, or that cycle's Payroll Period document was never set up. Check the Payroll Period document of the cycle.
- "The grid comes up empty" - no installment has a date on or before the end of the period, or the pay channel you set does not match the pay channel of the loan types' wage types.
- "It refuses my clearing amount" - it is either negative or greater than the installment. Recover part of an installment, never more than one.
- "The loan deduction was added to his pay instead of taken off" - the wage type on the loan type is a Debit wage type. It has to be a Credit one.
- "An installment keeps coming up after we recovered it" - its balance never reached zero, so it was never marked cleared. Check whether somebody typed a part amount into Clearing.