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Loan

A loan records money the company lent to an employee, which is then repaid from their pay — usually a little each month until it is fully paid back.

When to use it​

Use it when the company gives a staff member a loan and you want the repayments taken automatically from their salary.

How to add it​

  1. In the menu, go to Payroll → Payroll Items → Loan.
  2. Choose the employee.
  3. Enter the total loan amount and the repayment details (for example, how much to deduct each month).
  4. Click Save.

Each payroll run, the set repayment is taken from the employee's pay until the loan is cleared.

tip

The system keeps track of how much is left to repay, so you can see the remaining balance at any time.

note

A loan is different from an advance. A loan is usually a larger amount repaid over several months; an advance is salary paid early and taken back soon after.