Loan Classes
A Loan Class is a tag you create yourself (for example "Salary Advance", "Personal Loan" or "Equipment Loan") to classify the loans you give your employees. You pick it when registering each Loan transaction in Payroll, so you can later group and filter those loans by the kind of need they covered.
What is it and what is it for?
When you advance money to an employee (to deduct it later from their payroll) you use the Loans transaction. That transaction requires selecting a Loan Class, a simple catalog of your own with only two fields: a Name and free-form Notes. It doesn't take part in any payroll or accounting calculation on its own — its only purpose is to organize and let you filter your loans by type, both in the Loans list and in your reports.
It's a supporting catalog: it doesn't do anything by itself, it's just the step you take before registering Loan transactions for your employees.
How to use it
- Create your classes first. Go to Loan Classes, under Payroll, click New and type a descriptive Name (for example "Salary Advance" or "Personal Loan"). The Notes field is optional, useful for writing down the policy or terms tied to that class.
- Save. Using the Save button. The class becomes available immediately in the list.
- Use it when registering a Loan. When creating a Loan transaction for an employee, pick the matching Loan Class in its field. You can create as many classes as you need before you start registering loans.
- Review or edit it anytime. From the list, click the class's name to see its details, or Edit to change its Name or Notes.
You can't delete a Loan Class that's already used on a Loan transaction; the system shows you the list of those transactions so you can reassign them to another class first.
Key capabilities
- A simple catalog of your own, with no limit on the number of classes.
- Used as a required field when registering each Loan transaction for an employee.
- Lets you group and filter your loans by type in the Loans list and in your reports.
- Protection against accidental deletion: you cannot delete a class that already has loans recorded against it.
- Access controlled by the same Security permission as the Loans transaction.
Key fields
| Field | What it's for |
|---|---|
| Name | Identifies the class in the list and in the Loan transaction's selection field. Required and cannot be repeated. |
| Notes | Free text to document, for example, the policy or terms tied to that loan class. Optional. |
Validations when saving
- Name required: a class cannot be saved without a name.
- Unique name: you cannot create a class with a name already used by another existing Loan Class.
- Cannot delete a class in use: if any Loan transaction already has it assigned, the system blocks deletion and shows you the date and document of each loan using it, so you can change their class first.
Availability, plan and permissions
- Loan Classes require the Enterprise plan with the Payroll module active, plus the "Loans" feature turned on for your company. Unlike other Payroll screens, this feature is not included in the Premium Plus Payroll plan.
- Access to add, edit or delete Loan Classes is controlled by the "Loans" permission, assignable per user or user group in Security — the same permission that controls the Loans transaction.
- If you don't see this screen or the Loans transaction, contact support to confirm whether your plan includes the Payroll module and whether the "Loans" feature is enabled for your company.
Tips and common mistakes
Set up your Loan Classes before you start registering employee loans, with clear names ("Salary Advance", "Personal Loan", "Equipment Loan"...) so your later reports are easy to read and compare.
Can't delete a class? Check the list of loans the system shows you in the error message and reassign them to another class before trying to delete it again.