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Administrator Guide
Last Updated: 2023-06-23
Example: Set Up a Deduction to Recoup an Outstanding Balance on Termination (USA)

Example: Set Up a Deduction to Recoup an Outstanding Balance on Termination (USA)

This example illustrates how you can set up a deduction that recoups the balance of an outstanding flexible payment and deduction option when you terminate an employee.
Global Modern Services (GMS) enables US-based employees to request loans to purchase their uniforms, which they can then repay over multiple pay periods. As a payroll administrator, you want to set up a deduction for uniform loans that recoups its outstanding balance from employees who are terminated during the repayment period.
  • Create a deduction named
    Flex Deduction - Uniform Loan
     to use for flexible payments and deductions. See Steps: Create Deductions.
  • Security:
    Set Up: Payroll
     in the Core Payroll functional area.
  1. Access the
    Create Conditional Calculation
     task.
    1. Enter these values:
      Field
      Value
      Name
      FPaDO Recoup on Termination
      Category
      Payroll
    2. In the
      Calculation
       table, enter these values:
      Field
      Value
      Order
      a
      Condition
      Worker is Terminated as of Sub Period End Date
      Result
      Flexible Payment - Outstanding Balance
    3. In the
      Default Response
       field, enter
      Flexible Deduction Amount
      .
    4. Click
      OK
       and
      Done
      .
  2. Access the
    Edit Deduction
     task.
    1. From the
      Deduction
       prompt, select
      Flex Deduction - Uniform Loan
      .
    2. Click
      OK
      .
    3. In the
      Calculation
       field, enter
      FPaDO Recoup on Termination
      .
    4. Click
      OK
       twice, then click
      Done
      .
  3. Access the
    Maintain Flexible Payment and Deduction Options
     task.
    1. From the
      Country
       prompt, select
      US
      .
    2. Click
      OK
      .
    3. Add a row and enter these values:
      Field
      Value
      Payment/Deduction Type
      Uniform Loan
      Deduction
      Flex Deduction - Uniform Loan
    4. Click
      OK
       and
      Done
      .
After running payroll, use the
View Flexible Payments and Deductions
 report to confirm that the balance recouped correctly.