Maintain Loan Details {FARS-2}

This three-Block option allows the creation and maintenance of staff loan details per person, as well as the take-on of existing loans.

Fields in the option:

Block 1: Debtor Detail / Staff Link

When you query the debtor's number, the system displays the name, address, “active” indicator and total principal outstanding for all loans for this person. Note that this amount will not correspond with the total amount owed by an inactive debtor for whom monthly interest is calculated but no repayments are deducted.

The user now enters the personnel number to be linked and the system displays the person's name, initials, title, rank and postcodes, appointment date and resignation date. The user must <COMMIT> before <NEXT BLOCK>.

Field	Type & Length	Description
Debtor Code	N9	Unique code to identify the debtor.
Name	A40	Name of debtor.
Short Name	A10	Short name for quick reference and display purposes.
Alias	N9	Alias code to be used with this debtor.
Address	A30x4	Address Lines 1 to 4.
Postal Code	A4	Postal Code.
Debtor Type	A4	Debtor type.
Non/Active	A1	Is this debtor (A)ctive or (N)on-active.
Outstanding Principle	N15.2	Outstanding principle.
Personnel Number	A7 N9 A43	Person type. Personnel number to be linked to this debtor. Persons title, initials and surname.
Rank	N5	Person's rank.
Post	A4	Person's post.
Appointment Date	DD-MON-YYYY	Appointment date.
Resignation Date	DD-MON-YYYY	Resignation date.

Example:

Block 2: Staff Loan Details

The system displays the debtors code and name after a <NEXT BLOCK> command in Block 1. The user now updates the details of the specific loan for this debtor as follows, more than one record being allowed:

When a valid loan code is entered, the system displays the loan description and the following default details from the “Loan Types”, all of which can be updated:

Field	Type & Length	Description
Official Interest Rate		Default from the loan type definitions. "Official Rate" interest" means In the case of a loan that is denominated in the currency of the Republic, the rate of interest fixed by the Minister from time to time by notice in the Gazette. In the case of a loan that is denominated in any other currency, a market related rate of interest.
Interest Rate for this Loan		The ineterest rate as per the loan agreement with the perosnal member for the loan type.
Repayment Period		The standard repayment period in months for this loan type.
Repayment Deduction Code		The code defaults from the loan type definition and must be an active Deduction Code with a valid Tax Code as per Earning/Deduction Detail {FPRG-6} in the ITS Payroll System. The field is used when Payroll Deductions are to be generated for Staff Loans. The Deduction should be set up so that it does not influence tax.
Fringe Benefit Earning Code		The code defaults from the loan type definition and must be an active Earning Code with a valid Tax Code as per Earning/Deduction Detail {FPRG-6} in the ITS Payroll System. The code is used to process the "Fringe Benefit" on the Staff Loans, that is, where the Official Interest Rate is higher than the Interest Rate for this Loan (Type). The Earning should be set up so that it increase the taxable income.
Fringe Benefit Deduction Code		The code defaults from the loan type definition and is used to "Contra" the Fringe Benefit transaction created for tax calculation purposes. It should be a valid Deduction Code with a valid Tax Code as per Earning/Deduction Detail {FPRG-6} in the ITS Payroll System. The Deduction should be set up so that it does not influence the taxable income.
The following fields must also be updated as indicated:
Loan Principal	N17.2	This value can be supplied when a record is created, but cannot be updated thereafter.
Advised Repayment	N17.2	This value is optional; if the system should calculate the instalment, this field must be left blank.
From	YYYYMM	The field indicates the start pay cycles between which the advised repayment amount will be valid. The field is mandatory when the advised repayment amount contains a value.
To	YYYYMM	The field indicates the end pay cycles between which the advised repayment amount will be valid. The field is mandatory when the advised repayment amount contains a value.
Effective Cycle	N4 + N2	In which repayment will commence.
Generation of E/D’s Required?	Yes/No	The system defaults to (Y)es, in which case Payroll transactions can be generated via option {FARS-5}.
From	YYYYMM	The field indicate the start pay cycles between which E/Ds will NOT be generated by option {FARS}. The field is mandatory if the field "Generation of E/Ds" contains a (N)o. This facility is useful when an employee is on unpaid leave, for example, since interest on the loan can still accrue but no deductions are made via the Payroll System.
To	YYYYMM	The field indicate the end pay cycles between which E/Ds will NOT be generated by option {FARS-5}.
Number/Reference of Approval	A12	An optional reference number can be entered.
Date of Approval	DD-MON-YYYY	This field is mandatory.
Two further fields are displayed, which can be updated by the user only when a record is created, thereafter only via option {FARS-5}, namely:
Cumulative Repayment	N17.2	This value defaults to 0.
Cumulative Interest	N17.2	This value defaults to 0.
Also displayed is the Reducing Principal for this loan. Note that this amount will NOT correspond with the amount owed by an INACTIVE debtor for whom monthly interest is calculated but no repayments are deducted. Please note that records may be deleted from this Block only if no computer-generated interest or repayment transactions exist, or if the loan has been fully redeemed. This allows the correction of errors during take-on, but once computer processing of a loan has commenced, the process must be completed before the record can be deleted.

Example:

Block 3: Debtor Financial Summary

Field	Type & Length	Description
This screen cannot be updated by the user, and is accessed as follows: query a debtor by Debtor Code in Block 1, press <PREVIOUS BLOCK> and <RETURN>. The following information is now displayed: Debtor Code and Name Date on which this account record was created Date on which this record was last changed Date of last activity, i.e. last transaction for this account For previous financial year: Number of transactions Debit value of transactions Credit value of transactions Balance For current year-to-date: Number of transactions Debit to account Credit to account Balance of account For current month: Debit to account Credit to account Balance of account. The user can proceed to this Block without querying the required debtor in Block 1; when the number is entered, the system will retrieve the above information. The exception is a new debtor, in which case the system will retrieve null values if not queried in Block 1.

Field

Type
&
Length

Description

This screen cannot be updated by the user, and is accessed as follows: query a debtor by Debtor Code in Block 1, press <PREVIOUS BLOCK> and <RETURN>. The following information is now displayed:

Debtor Code and Name

Date on which this account record was created
Date on which this record was last changed
Date of last activity, i.e. last transaction for this account

For previous financial year: Number of transactions

Debit value of transactions
Credit value of transactions
Balance

For current year-to-date: Number of transactions

Debit to account
Credit to account
Balance of account

For current month: Debit to account

Credit to account
Balance of account.

The user can proceed to this Block without querying the required debtor in Block 1; when the number is entered, the system will retrieve the above information. The exception is a new debtor, in which case the system will retrieve null values if not queried in Block 1.

Example:

Processing Rules
	No special processing rules

Date	System Version	By Whom	Job	Description
03-Mar-2007	v01.0.0.0	Charlene van der Schyff	t133685	New manual format.
07-Jul-2009	v01.0.0.1	Charlene van der Schyff	t158351	Edit language obtained from proof read language Juliet Gillies.