I have created an employee loan at 0% interest with salary deduction option (fixed amount per period) and disbursed it.
When I run the payroll entry/salary slip, the deduction for principal shows correctly. When I make a bank entry the reduced pay amount shows in the bank entry, which is correct.
However, I don’t see the deducted principal amount posted to the employee loan account as a credit. Hence I still see the originally disbursed loan amount.
Is this incorrect behavior or am I missing a step?