Add a third party loan

You add a loan that has been provided by a third party, and you deduct the repayments from the wages and pay them out to the third party.You must specify the bank account and lender's payment reference so that Profit can include the repayments in the payment file.

If you change a bank account number that has already been specified, this will not result in RAE entries in approved periods. That is because payments that have already been made, cannot be undone.

To add a third party loan:

1. Go to: HR / Employee / Employee.
2. Open the properties of the employee.
3. Go to the tab: Loan.
4. Click on: New.
5. In Principal sum enter the full amount to be paid to the lender.
6. Enter Payment date as additional information.
7. Do not select the Pay pricipal sum in wage processing check box. The principal is paid directly by the lender to the employee.
8. Select Repayment through payment to third party for Type of repayment.
9. Select the Generate repayment schedule check box.
10. Enter the start and end date. Profit determines the periodic repayments.
11. Click on: Next. 
12. Click on: New.
13. You can add the bank account number of the lender. Complete the wizard and enter the name and city of the lender in Deviating name and Deviating city, respectively.

    If the bank account number of the lender is already known through another employee, you still need to add it again with the New button. Profit will report that the bank account number is known, but you can complete the process.

    If the New button is not available, authorise it for the Bank tab.

14. Enter the details you received from the lender in Payment reference.
15. Click on: Next. 
16. Select the Fully repay loan upon end employment check box, if you have agreed on this with the lender. If not, take care of the agreed repayments until the employee's employment ends.
17. Enter the description of the repayment, as this will appear on the pay slip of the employee.
18. Click on: Finish. 
19. Check the repayment schedule, this must contain the repayment amounts you have agreed with the lender.