Advance Payment 

The Advance Payment tool is processed when the advance payment is processed from the employee end. In simple words, the payment the employee is scheduled to pay through this tool will be carried forward. 

Here in this tool, once the advance requested is approved, the date for paying will also get started, and also the mode of installments will also be scheduled, therefore the payment of the advance amount will be scheduled by this tool. 

Let’s see how the advance payment operates from the below instructions, 

In this illustration, the employee has requested a certain amount for a particular reason. The Organisation has accepted the payment, which automatically changes from Pending to Paid, and when the payment is complete it changes to closed. 

Few Organisation for the employee well being, doesn’t require the employee to pay the loan, so in this software, the concern will select the Repayment required if the payment is required and deselects the tick mark if the payment is not required. 

As we can see when the repayment required is deselected the installments get closed. 

Why? Because the Organization on good terms doesn’t want the employee to pay the installments. And if the repayment required is selected, we can see the following details

1. No of Installments – 5
2. Monthly Deduction – 1000
3. Installments Remaining – 4 
4. Amount Remaining after deduction – 4000

The above installments are brought into account from the employee, without the interest which is rendered from the employee.

In case if the interest type is selected as simple, then the Interest Percentage is included with the actual amount received for a certain purpose. 

Interest type 

While the Interest type is in None – the percentage cannot be added, but when the interest type is changed to Simple -, we can see the Interest percentage can be added.

In this illustration, (sample format of how the interest type works).

1. When the installments are scheduled as 5, and the interest rate is given as 10% from the organization.
2. The Interest amount for 5000 in terms of interest to 10% will be 500.
3. The employee has already paid 1000, with a deduction of 1000, 
4. The remaining will be 4, including the above said, the Amount remaining will be 4000 if the interest is not processed but in case the interest percentage is added it will be 5500. 

After completing the calculations, the updation of the process will get reflected until the amount paid.