This first step allows you to create/delete/save amortization schedules.
HRplus allows you to create an amortization schedule for a maximum of five (5) principal amounts and interest rates at any one time. The instalments including the principal and interest for the period will be calculated and displayed into one (1) amortization schedule.
An employee may have an unlimited number of amortization schedules and amortization schedules may be created/deleted as necessary.
To view the formulae used in calculations go to Amortization Formulae
POWERpay>>Process Payroll>>Amortization>>Create Schedule
Data Entry in the above screen is as follows:
- Company: select the Company and Employee for whom the schedule is being done.
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Deduction Code: select the code under which the loan will be paid for the employee.
- Deductions as set up via POWERpay>>Maintenance>>Payroll Setup>>Deductions Listing. How do I set up Deductions?
- Also ensure that Deductions are linked to companies via POWERpay>>Maintenance>>Payroll Setup>>Link Deductions to Companies.
- Term of Loan (Years): enter the number of years over which the loan is to be repaid.
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Number of Periods Per Year: select the period within which the loan should be repaid. The options are:
- Quarterly (4)
- Monthly (12)
- Bi-Monthly (24)
- Fortnightly (26)
- Weekly (52)
6. Number of Principal Amounts: check either 1, 2, 3, 4, and 5. The appropriate number of columns will be displayed for data entry based on your selection, (e.g. if you check 5, then 5 columns will be displayed).
7. Principal Amount and Interest Rate: enter each Principal Amount (total loan amount) and corresponding Interest Rate (percentage) (e.g. 5, 2, 3.5). A consolidated amortization schedule will be generated for the amounts and rates entered.
8. Round Values?: check either Yes or No. Yes should be checked ONLY if cents are NOT being used e.g. Guyana.
- The top of the screen (Screen 2) displays the:
- summary of parameters entered i.e. principal amounts, interest rates, number of periods.
- Cycle Payment: the amount per cycle to be repaid.
- Total Payment: Cycle Payment * Number of Periods.
- The actual amortization schedule listed by repayment period will also be displayed. For each period, the Capital and Interest portions of the installment are displayed. As is normal for amortization schedules, the Interest portion will steadily decrease with time.
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Running totals will also be displayed for each period as follows:
- Capital Outstanding (decreases each cycle)
- Paid to Date Capital
- Paid to Date Interest
- Installment Capital
- Installment Interest
- Total Outstanding (decreases each cycle)
- The last section of the screen (Screen 2) allows you to process the loan in the payroll by selecting the Pay Group, Pay Year, and Pay Cycle and saving the Amortization Schedule. Once saved, the system will generate and display the amortization cycle changes for processing in the relevant Pay Cycle.
If you simply wish to only save the Amortization Schedule for viewing purposes, click No in response to "Do you want the system to generate the goal and amount cycle changes to start off the deduction?" and then click Save.
You may view the saved schedules via Step 2 - View Amortization Schedules
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