Deducting the Loan Repayment

The LOAN REPAY deduction deducts any outstanding loan amounts on termination of the payee. It is an amount calculation. The amount is the value of the LOAN BALANCE accumulator. Any balance becomes the amount of the deduction.

The deduction's generation control, CMN GC TERM STAT, has formula CMN FM TERM STAT, which determines whether to resolve the payment of various earnings and deductions.

The formula checks for either a termination date in the pay period or a termination action date in the pay period. It checks for both to accommodate situations where you have not entered the termination until the pay period after the pay period in which the termination occurred. If the formula only checked for the termination date, the deduction would not be processed because the termination date would be outside the current pay period begin and end dates.

The following diagram illustrates a timeline where the termination action date is in the current pay period, but the termination date is not.