cancel
Showing results for 
Search instead for 
Did you mean: 

Loan Concept

Former Member
0 Kudos

Hello Experts,

I want to initiate this discussion on loan concept in generic payroll.

As we generally use IT 0045 & IT 0078 for loan & loan payment respectively.

What if we use IT0014 & IT0015 for loan concept. Since loan is the recurring activity so this activity we can be maintained in IT0014, In IT0014 we can maintain periods for deductions too. Total loan amount can be defined in IT0015 as this IT may be used for one time payment/deduction?

I also would like to explain this mechanism thru an illustration.

Lets say Mr. X has taken loan of USD 5000 from any financial institution or its own organization and X wants this loan amount should be deducted in 10 equal installments so in IT0014 we can maintain USD 500 per month upto 10 months. As far as IT0015 is concerned it will be filled by total loan amount USD 5000.

I have done this experiment and ran the payroll, I didn't found any imperfection in this concept. I am seeking opinion on this principle of loan by using IT0014 & IT0015.

regards,

Amit

Accepted Solutions (0)

Answers (2)

Answers (2)

Former Member
0 Kudos

Using IT0045 takes cares of taxation on benefits(due to low interest loan offered by company) and interest calculation on loan, SAP generates wagetypes for these which can be used in Payroll processing and Loan reporting.

On the other hand, Using IT0014 & IT0015 will just take care of the payments and instalment deduction part.

Former Member
0 Kudos

Hello Tomesh,

Thank you for your input.

As far as interest part is concerned it is pre decided at the time of acquiring loan. The appropriate term n conditions must be signed between the parties.

So if i take my above quoted example then we may consider USD 5000 with interest amount as well.

This interest part is also be covered in reporting.

Still your suggestions are welcomed.

regards,

Amit

Former Member
0 Kudos

Hi Amit,

Using IT0045 would scrap the manual efforts and human errors involved in interest calculation. SAP Payroll allows you to configure this in IMG.

PY team also gets the flexibilty to handle the loan based on whether its fixed duration or fixed amount(or EMI).

If you go without using IT0045 you will have to develop several custom abap reports which otherwise atre available in standard.

Refer below for more details -

http://help.sap.com/saphelp_46c/helpdata/en/81/10f1b4f8d111d2a6630000e83ddb11/content.htm

former_member193210
Active Contributor
0 Kudos

When we first created our "Net Advance" and "Reimbursement of Advance" WTs back in 2000, our SAP consultants either did not mention IT0078 or our School Boards decided that they did not need automatic calculation of repayment of Capital and Interest.

We use the "Net Advance" WT on IT0015, and have set-up the reimbursement through 3 WTs.  The Periodic Reimbursement for IT0014, the Total Reimbursement for IT0015, and the Reimbursement Balance for Payroll Calculation.  The WT relations were done in table view V_T51P1.

For our Deferred Leave Plan, we use a simple deduction WT, but payment of accumulated salary is done through a "Deferred Salary" WT and a "Cumulated Interest" WT. The WT relations were also done in table view V_T51P1.