If the Loan Deduction component was deleted from the employee's Recurring Payroll Component screen but the initial loan balance has not been fully repaid, the loan deduction will recover the full amount on the employee's termination.
Navigate > Employee > Payroll Processing > Edit Payslip
To view the remaining balance of the loan that is being recovered, edit the component on the Recurring Payroll Components screen. Select to add the Loan deduction component and check if the loan deduction component still has an opening balance.
Navigate > Employee > Payroll Processing > Recurring Payroll Components
If there is still an opening balance on the loan, the component will calculate upon termination to recover the remaining balance.
To prevent the component from calculating you will need to re-add the loan deduction component and proceed to decrease the opening balance and save your changes.
After removing the remaining opening balance the component will no longer calculate on the employee's payslip upon termination.