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Administrator Guide
Last Updated: 2025-05-30
Steps: Set Up Loans (FRA)

Steps: Set Up Loans (FRA)

You can enable a worker to receive and repay a loan through the payroll department.
For an enhanced user experience and additional capabilities, Workday recommends that you use the Flexible Payment and Deduction Options solution to manage workers' loan requests and repayments. See Steps: Set Up Flexible Payment and Deduction Options.
  1. Access the
    Create Deduction
     task.
    Create a deduction for loan repayment with these settings:
    Option Description
    Country
    France
    Worker Eligibility
    Loan Repayment > 0
    Calculation
    Select:
    • Loan Repayment
       to deduct an amount based on the worker's loan repayment schedule.
    • A custom calculation to deduct a different amount. Example: You can create a conditional calculation to deduct the loan repayment amount for active workers, and the total loan outstanding balance for terminated workers.
    Optionally add a row to the
    Related Calculations
     grid to display additional loan details in the payroll results. Example: From the
    Override Calculation
     prompt, select
    FRA Loan Outstanding Balance
     to display the value of the outstanding balance before repayment.
    On the
    Non-Effective Dated
     tab, select the pay component group to which the loan repayment belongs. Example:
    FRA Subtracts from Net [FRA]
    .
    Security:
    Set Up Payroll (Calculations - Payroll Specific)
     security policy in the Core Payroll functional area.
  2. (Optional) Access the
    Create Earning
     task.
    Create an earning for loan payment with these settings:
    Option Description
    Country
    France
    Worker Eligibility
    Loan Payment > 0
    Calculation
    Loan Payment
    Groups
    Select the pay component group to which the loan repayment belongs. Example:
    FRA Adds to Net [FRA]
    .
    Security:
    Set Up: Payroll (Calculations - Payroll Specific)
     security policy in the Core Payroll functional area.
  3. Access the
    Maintain Loan Configuration
     task.
    As you complete the task, consider:
    Option Description
    Interest Rate
    Select to indicate that a payroll partner must define an interest rate and interest amount when approving loan requests.
    Allow Only One Active Request
    Select to indicate that a worker can’t request a new loan if they have a request or in progress loan of the same type.
    Security:
    Set Up: Payroll - FRA
     domain in the FRA Payroll functional area.
  4. Set up security for how you want to manage loan requests:
    • Configure the
      Request Loan
       business process and security policy in the FRA Payroll functional area for worker self-service loan requests.
    • Configure the
      Worker Data: Payroll (Company Specific) - FRA
       domain in the FRA Payroll functional area for loans requested outside of Workday.
If you set up the
Request Loan
 business process, workers can request a loan by accessing the
Request Loan
 task.
Approve a loan request and define the loan repayment schedule.