ERPNext HR & Payroll
What is Employee Loan?
- Employee Loan
- ERPNext's Loan module manages loans disbursed to employees, with automatic EMI deduction from salary slips over the repayment tenure.
Creating an Employee Loan
Go to Loan → Loan → New. Select the employee, loan type (Personal Loan, Car Loan, Emergency Loan), amount, and repayment tenure. On approval and disbursement, ERPNext posts the loan to the employee loan account. The repayment schedule auto-generates monthly EMI amounts.
EMI Deduction in Payroll
Link the loan to a salary deduction component. ERPNext automatically deducts the EMI amount from the employee's monthly salary slip until the loan is fully repaid. The Loan Repayment report shows outstanding balance and repayment history.
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