Process to clear up Arrears for terminated employees

Summary:

We are checking for better approach/process to clear up Arrears for terminated employees and how to handle it.

If any idea on this functionality/approach please share your inputs.

And also on the deduction elements i can see 'Clear_Arrears' input value , what is the use of this input value
and when the default value set as 'Yes' , how this work ?

Content (please ensure you mask any confidential information):

We are checking for better approach/process to clear up Arrears for terminated employees and how to handle it.

If any idea on this functionality/approach please share your inputs.