Staff loans and advances

Loans and advances are requested, approved, issued and then recovered automatically through the pay run.

The request

An employee raises a loan request. The approver sets the approved loan amount — which need not equal the amount requested — and the number of instalments. A rejected request carries rejection remarks, so the decision is explainable later.

Two approval stages

Issue records both an approved by and a payment approved by user, with approval remarks. That separation matters: the person who agrees the loan in principle is not necessarily the person who releases the money, and having both recorded is what makes the control real.

Issue and recovery

• The loan is issued with an issued date in Bikram Sambat.
• Instalments are tied to the payslip period, so recovery aligns with pay cycles rather than calendar months.
• Deductions apply automatically in subsequent pay runs.
• Outstanding balance is visible in both HR and the ledger.

Practical advice

• Check the loan outstanding report before approving a further advance to the same employee.
• Watch for loans still deducting after they should have finished — it shows up in the payroll register review.
• If an employee leaves with a balance outstanding, settle it through the proper path so the ledger and the HR record agree.