Loans / Advances

This module caters to all the requirements and functions related to Employee Loan Accounting. All loans including PF loans are handled in this module.

This module is completely integrated with other modules of Harmony suite. Once it is integrated with Salary module it automatically provides loan installment deduction with markup accrual or deduction. The module also provides markup differential required under local laws to calculate income tax liability.

In this module user can define different Loan types with markup or without markup. The system requires a one-time setup to incorporate the existing loans when you start using the module. After that only new loans or change in any existing loan is required to be entered.

System has the capability to calculate employee loan installments and monthly markup with each payroll using the information defined in this module.

Broad Functionality

• Loans with markup or without markup
  
• Multiple loan categories
  
• Multiple loans for an employee
  
• Calculates employee loan installments
  
• Calculates employee markup installment using flexible markup calculation methods
  
• Option to deduct markup installment or accrue markup amount
  
• Automatic integration with payroll for loan installment deduction
  
• Option to combine or split the principal and markup deductions in payroll
  
• Integration with Income Tax to handle differential markup to calculate income tax liability on loan subsidy
  
• Option to start recovery of a loan from a certain month
  
• Option to stop loan deduction for a specific period
  
• Option to process outside payroll adjustment of loan
  
• Option to change the repayment schedule of loan
  
• Option to keep record of third-party vendor loans
  
• Comprehensive Loan inquiry/reports
  
• Complete loan history available