Loans

What is it and what is it for?

When you advance money to an employee (for example, a personal or emergency loan), you can record it in AdmCloud as a Loan document, always linked to a base Labor Contract of that employee. From then on, AdmCloud calculates and shows the outstanding balance and, once the loan is authorized, automatically includes it in the employee's upcoming payroll runs, deducting the stated installment until the balance reaches zero.

The loan goes through an authorization flow (Pending → Authorized → Rejected) just like other payroll transactions, so a supervisor can review and approve the disbursement before deductions start. While it isn't authorized, payroll ignores it.

How to use it

1. Create the loan. Go to Loans, under Payroll, and click New. Select the Employee and their active Contract (only Base-type contracts). The loan's Date cannot be earlier than that contract's start date.
2. Enter the amounts. Fill in the Original Amount of the loan, the Initial Balance (in case you already received some payment outside of payroll) and the Deduction Amount for each pay run. Also pick the Discount Concept that will show the deduction on the employee's pay slip.
3. Mark which fortnight it's deducted in. If the employee is on a twice-a-month payroll, check at least one of Include in first fortnight or Include in second fortnight. If their payroll is weekly or monthly, this doesn't apply: the loan is automatically included in every pay run as long as it has an outstanding balance.
4. Save. Using the Save button. Depending on your privilege, the loan is saved as Pending (if it needs someone else's approval) or directly as Authorized.
5. Authorize the loan. If it was left Pending, someone with the authorization privilege must open the loan's detail and click Authorize. Only from that point does the system show the outstanding Balance, and payroll runs start applying the installment. You can also Reject the loan or move an already authorized or rejected one back to Mark Pending.
6. Track the balance. From the loan's detail you can review the amortization table (a simulation of how the original amount decreases installment by installment) and the list of payroll runs that have already deducted from it.

Key capabilities

• Automatically deducts the stated installment on every payroll run until the loan is paid off, with no need to remember it by hand.
• Its own authorization flow (Pending, Authorized, Rejected), independent from the rest of payroll.
• An automatic amortization table showing, installment by installment, how the loan decreases.
• Shows the real outstanding balance (net of what's already been deducted in payroll) while the loan is authorized.
• Lets you attach files (for example, the signed loan agreement) to the document.
• Quick "Pending Loans" (unpaid balance) and "Pending Authorization" reports right from the list.
• Column customization on the list, to show or hide data such as Reference or Notes.

Key fields

Validations when saving

• Employee and currency required: the loan cannot be saved without an active employee or a valid currency.
• Contract required and must be Base type: the loan must be linked to an existing Labor Contract of Base type; a contract of another type cannot be used.
• The loan's date cannot be earlier than the contract's date.
• Positive amounts: the Original Amount, Initial Balance and Deduction Amount must all be greater than zero.
• The Initial Balance cannot exceed the Original Amount.
• The Deduction Amount cannot exceed the Initial Balance.
• At least one fortnight checked: if your company runs twice-a-month payroll, you must check the first or second fortnight (or both) before saving.
• Department, Division, Location, Project and Item Class, when specified, must exist and not be voided.
• The Subsidiary cannot be changed on a loan after it's created.
• Once a loan already has payroll runs applied to it, you cannot change its Date, Currency, Employee or Contract; the system shows you the number of the payroll run blocking the change.
• A canceled (voided) loan cannot be edited, deleted or voided again, and neither can one that still has payroll runs applied and not voided: you must void those payroll runs first.

Authorization statuses

Every loan has an authorization status that controls whether payroll can deduct from it:

• Pending: the loan exists but isn't taken into account by any payroll run yet. It's the starting status if you don't have the authorization privilege.
• Authorized: the loan has been approved. From here its outstanding Balance is shown, and the employee's upcoming payroll runs apply the installment.
• Rejected: the loan isn't approved; it generates no deductions.

From the loan's detail, depending on your privileges, you can move it between these three statuses with the Authorize, Reject and Mark Pending buttons, without reloading the page.

Availability, plan and permissions

• Loans 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 view, create, edit, delete, void and authorize Loans is controlled by the "Loans" permission, assignable per user or user group in Security. Authorizing, rejecting or marking a loan pending specifically requires that permission's authorization level (or its edit level, to reject or mark pending).
• If the employee's contract belongs to a payroll type restricted to certain users, its loans are only visible to those assigned users, both in the list and in the Loans report.
• If you don't see this screen, 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