SAP Loan Configuartion

[former_member212348]

Hi Guys

Thanks for your valuable hep last time for Leave quota carry forward issues. I now want another help from from you.

In my project we have a requirement for PF advance. Company will provide PF advance and from the next month onward they will start recovery.

First they will recover the principle amount and at the end of it they will take the interest according to the formula:(Principle amount+ no. of installment) divided by 1/5

I have created a wage type for principle recovery under IT0014. My question is can I do this whole process through payroll by IT0045 and can calculate interest automatically without anual entry in IT0014?

I highly require your valuable suggestion on this?

[Former Member · Accepted solution]

Hi,

If you need help regarding the configuration of Loan

check this document :

Regards,

Praneeth kumar

[former_member212348 · Accepted solution]

Hi,

Can you pls let me know how system is calculating Reference interest rate?

[Sanky]

Hi Arka,

Check the following Function and PCR in INLN subschema.

INPLO INRP

Regards,

Sankarsan

[Former Member]

Hi Arka,

You can very well used IT 0045 for said requirement. In that you can specify the PF advance amount as loan amount and also mention the no. of periods in which amounts needs to recover.

At configuration level you can maintain the the interest rate which will calculate the interest on the same amount in payroll.

Please check the loan configuration through help.sap.com

Regards,

Mahesh $

[former_member212348]

Thanks Mahesh for your help.

But pls let me know if I want to recover the interest after I recover the principle amount fully, can I do so at config level?

[Former Member]

Yes, you can do this. Please check the configuration for Company Loans in SPRO > Payroll India.

Regards,

Bhagyashree