Loan Entry in Pocket HCM

In a payroll, a loan is a debit which is provided by organization to employee at an interest rate or without interest on the request of the employee. Since this is an important function, it needs to be recorded in one place so that it is available for future use and can be computed easily while the salary deductions are being computed. For a HR manager, it is very important that he can maintain Leave Management in one place. This feature is provided in built in the Payroll Software of Pocket HCM, India’s first Cloud based HCM Software

To avail this feature in Pocket HCM, follow the below mentioned steps:

Go into Transaction in Loan Entry option :

Loan entry allows creation of new loan accounts for a specific employee. All the deduction components created as instalment options in master creation will be taken into account for loan creation.

1. Select the category
2. Press F1 to select the employee from the list
3. As stated all the components set as installment will be loaded here which can be selected as per preference from the drop down list
4. Enter the Loan date & the apply month & year from which the loan deduction should start
5. Enter the loan amount & the number of installments required
6. While creating a loan account the amount cannot be entered as ‘0’ or the box cannot be left blank
7. The minimum loan amount should be entered as ‘100’ and above to create a loan account
8. Amount per month is automatically calculated by the system
9. 9. Click ‘Save’ to save the entries.
10. 10. Saved loan entry can be viewed in the description box.
11. Multiple loan accounts can be created for a single employee depending upon the necessity. Follow the same process to create other loan entries.
12. While defining the loan component in master if user want to apply interest against that loan amount than user has to select the instalment type as EMI with Interest and also provide the interest rate.
13. Now system will automatically calculate interest amount in per month value based on the interest rate applied to that component.

To know more about Pocket HRMS Features. You can also contact the Pocket HCM for a free demo here.