Qatar HCM Localization

SAP Standard Development

State of Qatar
HCM Private Sector Solution
Configuration Guide
(Loan Management)

Version
1.0

Version: 1.0
Date: Sep 11. 2012

Status
Completed

Date
11st. Sep. 2012

Qatar HCM Localization

Version: 1.0
Date: Sep 11. 2012

Qatar HCM Localization

Contents
1

Organization .................................................................................................................................... 4
1.1

Document Administration ........................................................................................................ 4

1.1.1

Authors ............................................................................................................................ 4

1.1.2

History.............................................................................................................................. 4

1.2

Intended Group of Readers ...................................................................................................... 4

1.3

Glossary ................................................................................................................................... 4

Getting Started ................................................................................................................................ 5

2.1

Related Information ................................................................................................................. 5

2.2

Important Notes....................................................................................................................... 5

Solution Overview ........................................................................................................................... 5

3.1

Software Component Matrix .................................................................................................... 5

3.2

Loan Type ................................................................................................................................ 6

3.3

Implementation and Configuration Basic Setting ................................................................... 6

3.3.1

Basic Setting ..................................................................................................................... 6

3.3.2

Loan Repayment Suspend in Ramadan ............................................................................. 9

3.3.3

Control Allocation of Loans ............................................................................................. 12

3.3.4

Advance Payment in Loan............................................................................................... 16

Version: 1.0
Date: Sep 11. 2012

Qatar HCM Localization

1

Organization

1.1

Document Administration

1.1.1

Authors

1.1.2

History

Date

Version

1.2

Chapter

Name

Intended Group of Readers

Consultants

1.3

Glossary

Term

Definition

Version: 1.0
Date: Sep 11. 2012

Change/Enhancement

Agree with

Qatar HCM Localization

2

Getting Started

This section contains information about Loan Management related information for Qatar solution.
The content of the document is subjected to be changed depends on needs.

2.1

Related Information

See also Common Eligibility Check for Benefits and Loans.

2.2

Important Notes

None.

Solution Overview

3.1

Software Component Matrix

Scenario / Business Processes

Loan management

Software Component
SAP_HRCQA

Implementation and Configuration Process

All loan management related setting is done via IMG setting.

Version: 1.0
Date: Sep 11. 2012

Qatar HCM Localization

3.2

Loan Type

Following Loan Type are HCM Qatar solution standard delivered settings.
A100 (Housing Repair)
A110 (Housing Advance)
A200 (Salary Advance)
A300 (EOS Advance)
A400 (Car Loan)
A410 (Personal Loan)

3.3

Implementation and Configuration Basic Setting

3.3.1

Basic Setting

To supplement your loan types, you proceed in the following way:

1. You are in the view Loan Types Definition.
a) Choose New Entries or select an existing entry and choose 'Copy as ...' .
We recommend that you copy an existing entry. By doing so, all the dependent entries in the
partial dialogs are also copied. Then you only need to modify them. This makes it unnecessary
for you to call the New Entries function for every partial dialog.
b) Enter a four-digit key for the loan type in the Subtype field.
We recommend that you use 91 (for installment loans) and 92 (for annuity loans) for both of the
first digits of the key. In the standard system, the system differentiates between loan types in
the same way: 01x for installment repayments and 02xx for annuity repayments. In this way,
you can tell the type of loan repayment from the second character (number). You must use the
leading 9 for your customer loan types, as this defines the customer name range for infotype
subtypes.
c) Assign a name for the loan type.
We recommend that you specify both the purpose of the loan and the loan type (installment or
annuity loan).
d) Choose Enter and select the new loan type.
2. If your system is set up for several countries and you only want to use the new loan type for one
country, you should assign the loan type to this country in the following way:
a) Call the relevant view under "Dialog Structure", by double-clicking on Country Assignment.
b) If there is no entry for this yet, choose New Entries.
c) In the Inftyp (Infotype) field, enter 0045 and in the SType (Subtype) field enter the key which
you have defined for the new loan type.
d) In the CoGrp (County Grouping) field, enter the country for which you want to use the new
loan type, and choose Enter.
e) The system displays an information message.
This message appears because you only save your data to the database when you have entered
all data in the partial dialogs. In other words, at this point in time the system does not recognize
that the new loan type actually exists.
f) Confirm the message with Enter.
3. Define the repayment type for the new loan type.
a) Call the relevant view by double-clicking on Technical Attribute under Dialog Structure.
Version: 1.0
Date: Sep 11. 2012

Qatar HCM Localization

b) If there is no entry for this yet, choose New Entries.
c) Choose Annuity loans, Installment loans or Recurring advances.
4. Define the conditions for your new loan type.
a) Call the relevant view by double-clicking on Conditions.
b) If there is no entry for this yet, choose New Entries.
c) Enter the loan type and define a period of validity for the loan condition.
d) In the Loan Condition field, enter a freely definable two-digit key and an explanatory text for
the condition.
e) In the Debit Interest field, enter the interest rate for the loan calculation.
f) If necessary, enter a special reference interest rate in the Reference interest rate field.
g) If necessary, select the Interest Rate Advantage field.
h) In the Period Parameter field, enter the key for the periodicity of the loan type.
i) Define the pattern for the deduction of interest and the repayment amount, by defining the
first period and the interval to the subsequent periods.
You must specify the interest pattern and repayment pattern for installment loans.
For annuity loans, you must only specify the annuity pattern.
5. Save your entries.
Further notes
If you delete the entry for a loan type in the view Definition of Loan Types, the system also deletes all
the corresponding entries in the other views.
IMG(SPRO)->Payroll ->Payroll Qatar (PY-QA) ->Loan ->Master Data ->Maintain Loan Types
Following screenshot and steps show the detail configuration of Loan setting.

Version: 1.0
Date: Sep 11. 2012

Qatar HCM Localization

Generally, please select 'Installment loan' in field Loan category, this kind of Loan Type will require
repayment every period. There are 3 categories for selecting:
a) Installment: the repayment total remains constant. The interest is added in every period,
but decreases when the loan continues to be repaid.
b) Annuity: The total of repayment and interest payment remains constant for this loan type.
When the loan continues to be repaid, the repayment share increases and the interest share
decreases.
c) Recurring: a certain amount is paid to the employee. The recurring advance is not repaid,
and no interest incurs. The employee only has to repay the amount when he/she leaves the
enterprise.

Version: 1.0
Date: Sep 11. 2012

Qatar HCM Localization

If your condition is suspending repayment in Ramadan, please input '86' in field period parameters.
Otherwise, please input your payroll period parameter.

3.3.2

Loan Repayment Suspend in Ramadan

If you don't suspend repayment in Ramadan, please skip this phase.

The Loan Repayment Suspend and resume depend on Period Parameter ('86' is a model).
You can setup detail in Payroll Parameters configuration.
IMG(SPRO)->Payroll ->Payroll Qatar (PY-QA) ->Basic Setting ->Payroll Organization ->Generate Payroll
Periods, Select 'Check Dates of Payroll Period'.

Version: 1.0
Date: Sep 11. 2012

Qatar HCM Localization

Use this condition in IT0045.

Save you loan record and checks Loan balance calculate.

You will see following repayment schedule, there is no repayment the period in Ramadan.
Version: 1.0
Date: Sep 11. 2012

Qatar HCM Localization

Run Payroll Driver you can get following result.

Version: 1.0
Date: Sep 11. 2012

Qatar HCM Localization

3.3.3

Control Allocation of Loans

In this Customizing activity, you make settings that control the crucial aspects of company loans, such as
eligibility checking, loan amount calculation and loan allocation.
Requirements

You have defined the loan types in your company in Customizing for Payroll Qatar, under Loans ->
Master Data -> Maintain Loan Types.
You have defined the general eligibility checking rules in Customizing for Payroll Qatar, under
Benefits -> Eligibility Check -> Define Common Eligibility Checking Rules.
Activities

In this Customizing activity, you complete the following steps:

1. Group loan types in loan groupings
Each loan grouping includes several loan types that are available for a certain group of
employees, who share one or more personnel attributes. For example, they belong to
the same personnel area, the same company code and so on. In this step, you
determine the loan types in each grouping.
2. For each loan grouping, determine eligibility checking and loan calculation as follows:
a) Set up eligibility checking rules for each loan type
You first determine which common eligibility checking rule to use.
Additional to the criteria in the common rule, you can use the following criteria to
further restrict the eligibility for a loan type:
o

Number of loans

Total amount of each loan

Intervals between loans

Loan payment and repayment

Note:
If these criteria cannot meet your requirements, you can set up additional eligibility
criteria using the BAdI: Enhancement on Loan Eligibility Checking, which is in
Customizing for Payroll Qatar, under Loans -> Master Data -> Business Add-Ins.

Version: 1.0
Date: Sep 11. 2012

Qatar HCM Localization

For more information, see BAdI: Enhancement on Loan Eligibility Checking.
b) Determine how to calculate loan amount for each loan type
In this step, you assign wage types to loan types. The total amount is calculated by
accumulating the wage types using the following formula:
Total amount = wage type 1 X weight 1 + wage type 2 X weight 2 +...
You can determine where to get the amount of each wage type. The possible data
sources are infotypes or an employee's latest payroll result. Each weight is a percentage
multiplied with the wage type amount, see Percentage for more information.
Note:
When you specify the data source as an infotypes other than 0008 (Basic Pay), 0014
(Recurring Payments/Deductions) or 0015 (Additional Payments), you must implement
the BAdI: Variable Wage Type Assignment to Loan Types. You can find this BAdI in
Customizing for Payroll Qatar, under Loans -> Master Data -> Business Add-Ins.
For more information, see BAdI: Variable Wage Type Assignment to Loan Types.
c) Exclude inapplicable loan types from loan groupings
This step is optional. If you do not want to allow a certain loan type to be available for
some employees, you can exclude it from the corresponding loan grouping.
As a result, when the user tries to create master data of loans using this excluded loan
type for an inapplicable employee, the system cancels the user's action.
3. Assign loan groupings to applicable employee groups
You use the Default Value for Company Loans (ALOAN) feature to determine the
mappings between the loan groupings and the applicable employees. For more
information, see 'Allocate loan Grouping'.
IMG(SPRO)->Payroll ->Payroll Qatar (PY-QA) ->Loans ->Master Data -> Control Allocation of Loans,
Select 'Define Loan Grouping'.

Version: 1.0
Date: Sep 11. 2012

Qatar HCM Localization

Version: 1.0
Date: Sep 11. 2012

Qatar HCM Localization

'Outstanding Upper Limit' will check all loans that remain outstanding.
If you want set a default loan amount not only it's advanced payment loan type. You must implement
the BAdI: Loan Default Value Calculate (Technical name is PADQA_LOAN_DEFAULT_VALUE).
There are 2 maximums to limit loan amount. If all is filled, system determining value is the lowest value
default. Otherwise, you can configure the feature 'LNMAX'(Control Maximum Value for Loans) to change
the decision rule by running T-code 'PE03'. If the value in some Loan Grouping and Loan Type is 'H', the
system determining value is the highest value.

Version: 1.0
Date: Sep 11. 2012

Qatar HCM Localization

IMG(SPRO)->Payroll ->Payroll Qatar (PY-QA) ->Loans ->Master Data -> Control Allocation of Loans,
Select 'Allocate Loan Groupings'.

Example: If an employee's Country Grouping is 'QA' and Personnel Area is 'QA01', his loan grouping will
be 'L100'. When he requests to get a Car Loan (A400), he will be restricted by above configuration.

3.3.4

Advance Payment in Loan

Employees can request to get paid of a lump-sum amount ahead of the relevant payrolls, which are not run yet.
For example, instead of paying the housing allowance via the next two monthly payroll runs, paying out the
amount that equals to the allowances in two months in a lump sum.
In this Customizing activity, you specify which loan types allow the advance payment.
Requirements
You have defined the loan types in Customizing for Payroll Qatar, under Loans -> Master Data -> Maintain
Loan Types.
You have set Advance period and maximum multiple and percentage in Control Allocation of Loans, under
Activities

Version: 1.0
Date: Sep 11. 2012

Qatar HCM Localization

You use the feature P3313 to specify these loan types. In the feature, you assign the return value A to such
loan types. For more information, see Screen Control: Loans Additional (3313) Infotype feature (P3313).
As a result, when you create records in the Loans (0045) infotype using the specified loan types (infotype
subtypes), the system appends additional fields related to advance payment to the screen, such as advance
period and payment percentage.

IMG(SPRO)->Payroll ->Payroll Qatar (PY-QA) ->Loans ->Master Data -> Define Loan Types Requiring
Advance Payment.

If loan type is related with some advanced payment such as basic pay, housing allowance, we could use
following configuration to automatically retrieved corresponding amount from infotype or payroll.

Version: 1.0
Date: Sep 11. 2012

Qatar HCM Localization

Now you will see 2 additional fields being display in Infotype 0045.

Version: 1.0
Date: Sep 11. 2012