Employee Loan

General Description

Employee Loan is a separate module which helps user (specifically Payroll user) to manage employee loan, calculate installment and deduct the installment from employee payslip.

The module bought from: https://apps.odoo.com/apps/modules/11.0/dev_hr_loan/

Loan Type

Fields that available in Loan Type:

1. Company, the field is related to res.company. The field is not editable, will be automatically filled, after field Journal selected. The company value will be based on the company of selected Journal in the Loan Type.
2. Name, the field is to help user differentiate one loan type to another. The field is mandatory.
3. Code
4. Loan Amount Limit
5. Term Type, the field is combobox. The available selection is only Fixed Term and Percentage. The differences between two will be explained later.
6. Apply Interest, if the checkbox is checked, the system will display 2 additional field: Interest Rate and Interest Type. If not checked, the 2 fields will not be displaying.
7. Interest Rate, this field will define the rates per installment line.
8. Interest Type, this field will define how to calculate the interest. The available option is Liner and Reduce.
9. Loan Account, the field is related to account.account. The field is to define the account in journal entry for the employee loan process. The field is mandatory.
10. Interest Account, the field is related to account.account. The field is to define the account in journal entry for the interest in the employee loan process. The field is mandatory.
11. Journal, the field is related to account.journal. The field is to define the journal which the journal entry will be posted to.

Term Type of Loan Type

There are 2 term types of loan type:

1. Fixed Term (originally from Devintelle Employee Loan module). If the loan type with term type fixed term applied to employee loan document, the installment lines will be calculated before the employee loan document process is done.
2. Percentage (additional by Kompas Gramedia). If the loan type with term type percentage applied to employee loan document, the installment lines will be calculated each month before payslip process done. The process installment calculation will be done by click button [Calculate Loan Installment] in Payroll > Remuneration > Remuneration. The button and the calculation of installment line were placed in remuneration, due to Company's regulation, the employee installment amount will be calculated from fixed percentage of employee's wage and fixed percentage from employee's irregular salary component (e.g Bonus).

Here is the differences of how the installment calculation between two term types:

Employee Loan Document

Employee Loan > Employee Loan

Fields that available in Employee Loan document:

1. Employee, the field is related to hr.employee. Default value is the employee of the user login. User should be able to edit the employee value to the employee who submit the employee loan proposal. The field is mandatory.
2. Department, on change field employee, the system automatically get the department value of selected employee in employee field from master employee. The field is not mandatory.
3. Department Manager, the field is related to hr.employee. The field is to assign department manager who are going to approve the employee loan document. The field is mandatory.
4. Date, the date of employee loan document. The field is not editable, automatically filled with today's date.
5. Job Position, the job position of selected employee. The field is not mandatory.
6. Company, the field is related to res.company. The field is not editable and automatically filled with current active company in Odoo.
7. User, the field is related to res.user. The field is not editable and automatically field with current user login.
8. Payment Method, currently option available is only "By Payslip". The field is mandatory.
9. Loan Amount, is the amount of loan proposed by the employee. The field is mandatory.
10. Paid Amount, the field is a computation field, is not editable and automatically display amount of installment paid for the selected loan.
11. Remaining Amount, the field is a computation field, is not editable and automatically display amount installment remaining which are not paid yet by employee payslip.
12. Loan Type, the field is related to employee.loan.type. To set which loan calculation formula is going to used in employee loan. The field is mandatory.
13. Start Date, the field is going to determined the start date of the 1st installment line. Default value is today's date. The field is mandatory.
14. Term, the field is to determine how long installment is going to be calculated. The term field is only available and mandatory if the term type of the selected loan type is percentage. If the term type of the selected loan type is fixed term, the term will be using the term defined in the loan type.
15. End Date, the field is a computation field, based on start date and the term. The field is not editable. The field will be displayed if the term type of the selected loan type is percentage.

Loan Installment

The installment will be calculated based on the term type of the selected loan type. Based on user requirement, the calculated result of installment line should be able to be edited. The installment edit will be triggered by Memo based on Employee's current condition. The edit installment amount process will be different for each term type available.

1. Edit installment for percentage term type, the edit process installment will be available in each installment line which is not paid yet. If the installment line is already paid, the installment line should not be able to be edited.
2. Edit installment for fixed term type, the edit process installment by default is available like the process edit installment for percentage term type. But by SOP, the HR Admin usually end the current loan and create new loan and add the remaining amount from past loan into the new loan.

Installment calculation:

1. Fixed term without interest
2. Fixed term with liner interest
3. Fixed term with reduce interest
4. Percentage without interest
5. Percentage with liner interest
6. Percentage with reduce interest

Journal Entries

Notes

1. Employee loan should be able to be included in employee payslip if the employee loan status is Done.

Business Process

The original version of employee loan from the Devintelle, required employee data masters to be mapped into partner (customer/vendor), in order to get account payable account to create journal entry on click [Paid Loan].

The debit account were taken from employee's partner mapping of account payable account, while the credit account were taken from loan account set on loan type selected on employee's loan.

Here is the debit account settings:

Here is the credit account settings:

Modification Request

1. Create new table of Loan Percentage. The table will be available if the selected term type is percentage.

2. Employee loan calculation if the term type is percentage. The loan should not generate or calculate installment. The compute and generate process will be done after processing the regular and irregular payment from hr.remuneration to get the component/salary rules that being the base of the installment calculation.

3. Enable edit installment line after installment calculation, and activate log on field installment amount and add new field of reason.

4. Disable the original Department Manager approval form Devintelle modules, and replace the approval in employee loan with the tier validation approval into Employee Loan approval. The current department manager approval needs user mapping to the employee manager data in order to approve the Employee Loan documents. The employee loan approval regulation not yet fixed within the corporate, (whether the employee loan will be filled in by employee directly or will be filled by the HR/PA Admin for selected employee).