Change the repayment schedule

If you add a loan, Profit can automatically generate a repayment schedule based on the start and end date you specify. As a result the periodic repayments are the same in each period, with the exception of rounding differences. The repayment schedule does not contain interest amounts. Profit Payroll determines the interest during the wage processing.

Change the repayment schedule

You can adjust the repayment schedule, for example, because in each period you want to deduct a rounded amount. You can deduct the remainder in the last period. There is also the option not to deduct anything for a number of periods and to increase the repayments in other periods. The total amount of the repayments cannot be more than the principal sum.

If you have Profit Payroll, Profit automatically selects the Repayment through wage processing check box when generating the repayment schedule. This allows Profit to automatically deduct the repayment amount from the net wage.

If you change a repayment amount in a processed or approved period, Profit automatically generates the RAE entries. If the repayments are paid to a third party then this is not possible as these repayments cannot be reversed. In that situation, it is not possible to change the relevant line.

To change the repayment schedule:

1. Go to: HR / Employee / Employee.
2. Open the properties of the employee.
3. Go to the tab: Loan.
4. Open the loan properties.
5. Go to the tab: Repayment.

   You see the automatically generated repayment schedule.

6. Click on the action: Repayment schedule maintenance.

   You can change the repayment schedule.

   Profit opens an entry layout in which you to can adjust the line amounts directly.

   If you adjust a repayment amount that falls in a period that has already been approved, this automatically results in RAE entries.

7. To generate a new repayment schedule, do the following:
   1. Click on the action:Generating repayments.
   2. Enter the start and end date for the new repayment schedule.
   3. If you leave the amount blank, Profit distributes the repayments evenly across the periods.

      If you enter an amount, Profit assigns this amount to the periods, until the principal sum has been repaid in full. Profit assigns any residual amount to the last period.

   4. Click on: Finish.

   Example:

   The principal sum is €2,449.00. The employee repays in six instalments of €400.00 and a final instalment of €49.00.

   You only enter the Start date repayment and the Periodic repayment of € 400.00. Profit automatically calculates the following repayments:

   

8. At the top of the window you see the principal sum, the total of the repayments and the balance. The balance must be zero if the loan is to be repaid in full.

   If you have changed the date of the first or the last repayment, Profit also updates the date on the General tab.

9. Click on: Finish.

Postpone repayments

You can temporarily suspend repayments by deleting repayment lines for the relevant periods. You can add them again at a later time. If you do not want to make repayments for an indefinite period of time, you will need to delete all future repayment lines.

Deleting the repayment lines does not affect the interest: this continues to accrue during the periods that no repayments are made. You can always set the interest to zero, starting from a certain date, but this will result in an interest advantage for the employee.

Write off the remaining debt

To write off a remaining debt, do the following:

• Delete all future repayment lines.
• Create a new repayment line for the repayment of the remaining debt. Do not select the Repayment through wage processing check box but do select the Paid check box.
• You must enter the written off amount as wages since 'Loonheffing' and employee insurance premiums need to be calculated for it.