In ERPNext, you can setup loans which can be payable on a given number of periods and a specific number of time. Amortization and payment schedule can be setup as well per employee. A loan can also be deducted from employee's salary.
First thing that needs to be done is to create a Loan Type. This varies depending on what type of loans are applicable for each company.
Create Loan Type
1. Login to ERPNext.
2. Go to Human Resources. Under Loans, click Loan Type.
3. Click New to create a new Loan Type.
4. Fillup the Loan Type information as needed.
5. Click Save to create the Loan Type.
Applying for a Loan
Employees can file for a loan through ERPNext or the HR may encode the loan on behalf of the employee. This depends on the systems implementation per company. To submit a loan application in ERPNext:
1. Login ERPNext.
2. Under Human Resource, go to Loans and click Loan Application.
3. Click New.
4. Fillup the necessary information:
If Repay Over Number of Period is selected, the loan applicant will need to input the Repay period in months. The amount payable per month will be computed by the system.
5. Click Save to create the loan as Draft.
6. Click Submit to finalize.
Repayment Schedule
1. If the Loan Application status is Approved, click the "Create Loan" in the upper right part of the screen. Enter the following information:
2. Click Save. The Repayment Schedule will be auto populated. Details of the monthly loan payment and balance will be displayed.
3. On the Totals section, running total and balances of the loan will be displayed. This will be automatically updated based on the payments made.
4. If loan payment is to be deducted from employee's payroll, tick the "Repay From Salary" box. Loan will be included in the employees deductions.
5. Click Submit to finalize.