Implementing Advances

Based on the company's policy and employee's eligibility, an employee can apply for an advance and the same can be recovered from his or her salary.

In the system, you can process advance requests from employees, as well as recover the amount paid as advance.

Enabling Advances:

• Go to Admin Center?>?Manage Employee Central Settings.
• In the?Others?section, set both the?Advances?and?Deductions Management?button to?On.
• Click?Save.

Setting Up RBP:

• In the Administrator Permissions section, choose Manage Advances, which is used to control all permissions related to Advances.
• Under Advances Eligibility, select View or Edit based on whether the user should be able to view or edit the Advances Eligibility of an employee who is assigned to the target group that this role is responsible for.

In case you select Edit, the system displays the edit link in Eligibility for Advances screen. The user has the option to edit the Advances Eligibility object in Manage Data.

Select?Create Advance?if the user with this permission role should be able to create an advance request by clicking?Take Action?in the Employment Information page of an employee who is assigned to the target group that this role is responsible for.

Thus, the user would also be able to modify the following objects:

• Accumulation For Advances
• Advances Eligibility

Setting Decimal Precision - Eligibility for Advances:

• Go to Admin Center?and search for Configure Object Definitions.
• In the Search drop down menu, choose Object Definition.
• Enter Eligibility for Advances in the adjacent field.
• Click on Take Action > Make Correction.
• In the eligibilityAmount field, click “Details”.
• In the Decimal Precision field, enter the desired value.
• Click “Done” and save the MDF Object Definition.

Setting Decimal Precision - Advances:

• Go to Admin Center?and search for Configure Object Definitions.
• In the Search drop down menu, choose Object Definition.
• Enter Advances in the adjacent field.
• Click on Take Action > Make Correction.
• In both the?accumulateAmount?and?remainingEligibileAmount?fields, click “Details”.
• In the Decimal Precision field, enter the desired value.
• Click “Done” and save the MDF Object Definition.

Setting Decimal Precision – Accumulation for Advances:

• Go to Admin Center?and search for Configure Object Definitions.
• In the Search drop down menu, choose Object Definition.
• Enter Accumulation for Advances in the adjacent field.
• Click on Take Action > Make Correction.
• In both the?accumulateAmount?and?remainingEligibileAmount?fields, click “Details”.
• In the Decimal Precision field, enter the desired value.
• Click “Done” and save the MDF Object Definition.

Setting Decimal Precision – Non Recurring Payment:

• Go to Admin Center?and search for Configure Object Definitions.
• In the Search drop down menu, choose Object Definition.
• Enter Non Recurring Payment in the adjacent field.
• Click on Take Action > Make Correction.
• In the?payCompValue?field, click “Details”.
• In the Decimal Precision field, enter the desired value.
• Click “Done” and save the MDF Object Definition.

Creating a Picklist for Advances:

To create a picklist, Go to Picklist Center and click on + symbol to create a picklist.

Create a picklist with the code “paymentMode”. This picklist specifies the ways an employer can pay an employee the advance amount.

Add the picklist values that you require. For example, Payment Mode picklist can have the following values: Check, Cash, Bank Transfer.

Creating Pay Components for Advances:

• Go to Manage Organization, Pay and Job Structures.
• Under Create New, choose Pay Component.
• Enter all required field entries.

You can either create an?Amount-based?pay component or a?Percentage-based?pay component.

When you create an?Amount-based?pay component, define the fixed amount in the?Pay Component Value?field.

When you create a?Percentage-based?pay component, select the relevant option in?Base Pay Component Group?field and enter the percentage value in?Pay Component Value?field. The?Base Pay Component?field lists all the available pay components.

The system calculates the advance based on the value in?Pay Component Value?field and the pay component that you have selected in?Base Pay Component?field.

Defining Rules to Determine Eligibility for an Employee:

The eligibility rule that decides if a particular employee is eligible for an advance or not varies depending on the customer.

Based on criteria such as an employee’s department and pay grade, you can set up a rule, which is specific to your company, using the rules engine. The rules engine executes this rule for every employee who requests an advance.

Setting Up Advances Eligibility Rule:

This rule can be used as eligibility check and setting the maximum eligible amount or percentage.

Advances rules are designed to set the?Eligibility Amount?per advance for the employee. The rules engine executes this rule for every employee who requests an advance.

When subsequent requests can be raised against the same advance, the system stores the accumulated amount as?Remaining Eligibility?and uses this for calculating the eligibility amount.

• Go to?Configure Business Rules??Create New.
• Under?Advances Management, select?Advances Eligibility Rule.
• Enter?Rule Name,?Rule ID,?Start Date, and?Description. Click?Continue.
• Note: Parameters?are predefined and aren’t editable.
• Set up the rule as per your requirement.
• Save the rule.

Setting Up a Rule to Determine Eligibility:

• Go to Configure Business Rule.
• Click?Create New Rule?and?Choose Basic Rule?radio button.
• Create a new rule (For Ex: AdvancesRule). The Base Object should be?Eligibility For Advances.
• Use the picklist?RulesType. If this picklist is not available, then you should create it. You can define your own company-specific values in the picklist.
• Click?Manage Parameters and Variables?and create a new parameter with the code and name of?JobInfo?and object Job Information.

To fetch additional data such as, pay component type and pay component group for?Advance Type?field, you must configure a standard rule in your system:

You must configure two rules to automatically fill the fields “PayComponentType?” and “BasePayComponentGroup” on selection of “AdvanceType” field of the “Eligibility for Advances” MDF needs to configured as follows:

You can choose the external code of both rules. You attach these rules to the “AdvanceType?” field of the “Eligibility for Advances” MDF.

Using Standard Configuration UI:

• Go to Manage Configuration?UI.
• System opens?Manage Configuration UI?screen. Search for the?AdvanceConfigUI.

Defining Eligibility:

• Go to Manage Advance Objects.
• Click?Create New?and select?Eligibility for Advances.
• Enter the following data:

1. Allow Unlimited Eligibility Amount: Choose?Yes?when you want the employee to enter a preferred advance amount.
2. Enable Auto Recovery?- Specify?Yes?or?No. In case you select Yes, system displays the following fields:

• Recovery Pay Component (Recurring), which specifies the pay component against which advances will be recovered on a recurring basis.
• Recovery Pay Component (One Time), which specifies the pay component against which advances will be recovered on a one-time basis.
• Recovery Format, which specifies the format in which advances will be recovered. You have the option to select either?As per Date?or?As per Day?in this field based on which the recovery will happen.

3. Exception For Number of Installments: Select either?Yes?or?No. In case you select?Yes?in this field, the employee can choose the number of installments, greater than that maintained in the?No of Installment?field.

1. Exception For Requested Amount: Select either?Yes?or?No. In case you select?Yes?in this field, employee can request for the advance amount greater than the amount maintained in?Maximum Eligibility Amount/ Percentage?field.
2. Effective Start Date, which is the date from when the Eligibility instance is effective in the organization.
3. Status, which specifies whether eligibility instance is active or inactive for this date period.
4. Advance Type, which specifies the pay component against which advance will be paid.
5. Legal Entity, for which this eligibility instance is valid.
6. Pay Grade, for which this eligibility instance is valid.
7. Maximum Eligible Amount, which is the maximum amount an employee can request.
8. Note: Do not enter a maximum eligible amount when?Allow Unlimited Eligibility Amount?is set to?Yes. Maximum Eligibility Amount cannot be set as the employee is allowed to request an advance amount.
9. Currency.
10. Maximum Eligible Occurrences, which is the number of times employee can request for the advance in a given time frame.
11. Eligibility Valid for (Number) - Specify the number (of days / months / years) for which the advance is valid for.
12. Eligibility Valid for (Unit) - Specify the unit (days/ months / years) for the number specified in the previous step.
13. First Occurrence Date, which is the date from which the first period for Maximum Eligible Occurrences starts.
14. Pay Component Type and Base Pay Component Group - Displays the relevant pay component and base pay component. Note that these are read-only fields and will display the data only when the rules corresponding to them are configured.
15. Recovery Mode, which specifies the mode through which advance is recovered. You can enter the following as the recovery mode: Bank Transfer, Cash and Check.
16. Installment Frequency, which specifies the frequency in which the amount will be deducted.
17. Interest Type, which is the type of interest that must be applied on the advanced, this can be simple, compound or interest free.
18. Employee can Edit Number of Installments - Specify either?Yes?or?No. In case you select?Yes?in this field, system enables?Number of Installments?field on advance request screen for the employee. Else this field is disabled.
19. Employee can Edit Recovery Mode - Specify either?Yes?or?No?. In case you select?Yes?in this field, system enables?Recovery Mode?field on advance request screen for the employee. Else this field is disabled.
20. Default Workflow: Select and associate the standard workflow that the system should trigger when an employee applies for an advance.
21. Exception Workflow: Select and associate the exception workflow that you want the system to trigger in case of exception scenario.

Defining Eligibility Percentage based on Pay Component:

An employee may be eligible for a certain percentage of advance from his/her annual, monthly, or bi-weekly salary. The frequency might vary based on your organization.

• Go to?Manage Data?>?Create New?>?Eligibility for Advances.
• Enter the required fields:

1. <Advance Type>: Choose the advance type that has the type?Percentage. A field?<Calculate Percentage on Value of>?will appear.
2. <Calculate Percentage on Value of>: You can choose?Pay Component Group(Annualized)?or?Pay Component Group.
3. <Maximum Eligibility Amount/Percentage>: Enter a percentage for which the employee is eligible for.
4. <Installment Frequency>: Choose the installment frequency. You will be prompted with a warning to ensure the frequency mentioned here matches with the frequency of?Base Pay Component?or?Base Pay Component Group. If there is a difference and you choose to?Proceed, the value here will override the other frequency.

• Click?Save.

Request Advance in People Profile:

To Request Advance in People Profile

Go to?Employee File.

On the?Employee File?page, under?Employment Information, click on?Eligibility for Advances.

Click on?Request Now. In the screen that appears, enter the required details:

• Request Date
• Advance Type
• Currency
• Requested Amount
• Payment Mode
• In the?Recovery Details?section, the?<Number of Installments>?can be edited if the RBP permissions are enabled. The number of installments must be equal to or less than the default value. All the other fields in this section are filled automatically.

To send the request for approval, click Submit.

Once you create the request for advance, note that, the system accordingly updates the?Eligibility for Advances?portlet. This portlet displays the total amount that an employee is eligible to take as an advance, remaining amount than an employee can request as advance and details about recovery plan.

Recovering an Advance:

The process for recovering an advance is started when employee requests an advance. While creating the advance, they enter the advance and recovery details.

After the request is approved, the administrator checks on the pending installments. The employee can view the recovery details in the Recovery Plan section.

In case the auto recovery option is enabled, system automatically creates the deduction instances. In case the auto recovery option is not enable, the administrator must manually create the Advance recovery deductions instances manually.

• Go to the Employee’s Employment Information page.
• Click?Take Action?and select?Manage Recurring Deductions.
• Create a new recurring deduction entry by selecting the relevant advance from the?Advance?field.
• Set the effective date for when you want the advance recovery to start for the employee.
• Save your entries.

The administrator keeps track of the recovered amount and updates the system with a spreadsheet until there are no more pending installments for the advance.

• Go to?Admin Center??Metadata Framework??Import and Export Data.
• Choose one of the options from the?Select the action to perform?drop down menu. There are three options:

1. Import Data
2. Export Data
3. Download Template

• When all the instalments are paid, the process for the request is set to Complete. Based on the number of installments that you maintain during advance creation, the system creates the same number of installments for recovery. The details of the Installment Amount, Payment Date, Installment Status, Currency, Balance Remaining, Interest Amount and so on are available. The Installment Status can be paid, not paid, not relevant. Each time an advance installment status is?Paid, the corresponding installment amount gets updated in the?Pending Amount?field. When all the installments are paid, the?Recovery Status?changes from Planned to Completed.

The employee can then view the details of the recovery plan under?Employment Information??Recurring Deductions?section.

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