Loan Adjustment
A loan adjustment happens when it is necessary to adjust the balance on a loan. See this link for detail on how it is done.
Changes to Loan Conditions
If loan conditions change during the life of the loan simply double click on the loan Transaction Code in the Employee's Payslip Input. Changes may be made to the:
•'Repayment Amount' for the current period only
•'Repayment Periods' for the loan
•'Annual Interest' Rate for the loan
Change Repayment Amount in the current period
It is possible to change, or bring to zero, the amount of the 'Current Repayment'. This can be done for one employee at a time by:
•Go to the 'Process', then 'Payslip Input' menu options
•Select the employee whose loan repayment is being changed
•Click on the loan Transaction Code
•Change the 'Current Repayment' amount to the new value
•Press 'OK' to save the change.
Notice the 'Loan Details' (amortization schedule) adjusts automatically to take into account the change ensuring that the loan is repaid over the loan period. Note that the change made in the current period will not be carried forward to the next period/s. The loan repayments in the
Change number of repayment periods
It is possible to change the number of repayment periods of a loan during the life of the loan. This can be done for one employee at a time by:
•Go to the 'Process', then 'Payslip Input' menu options
•Select the employee whose loan repayment is being changed
•Click on the loan Transaction Code
•Change the number of 'Repayment Periods' to the new value by typing in the value or by scrolling.
•Press 'OK' to save the change.
Notice the 'Loan Details' (amortization schedule) adjusts automatically to take into account the change made. This change is carried forward into the next period/s until the end of the loan.
Change interest rate on a loan
It is possible to change the interest rate on a loan during the life of the loan. This can be done for one employee at a time by:
•Go to the 'Process', then 'Payslip Input' menu options
•Select the employee whose loan repayment is being changed
•Click on the loan Transaction Code
•Change the 'Annual Interest %' to the new value
•Press 'OK' to save the change.
Notice the 'Loan Details' (amortization schedule) adjusts automatically to take into account the change made. This change is carried forward into the next period/s until the end of the loan.
It is not possible to change the Calculation Method, whether interest is being calculated using the Simple Interest or Reducing Compound method of calculating interest.