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New Loan deduction facility (Deduct interest after principal)#

The new loan deduction option now deducts the principal first (as per the installments) and the interest is deducted towards the end of the installment period. For example : if the loan amount is Rs. 10000 at 5% interest for an installment period of 2 months, the principal of Rs. 5000 will be deducted for the first two months and the interest will be deducted on the third month. This option has to be configured under System to take effect.

To configure loan deduction

1. From the home page go to Payroll configuration > Payroll Repository.
2. Select Loan under Net pay > Total Deductions components. Now go to Agent Info check the button next to Deduct Interest After Principal and Save the changes.
3. You will have to select the desired employee and process the payroll for the calculations to take place.