You can try 'Prepayment' functionality in AP to pay loan to employee (create employee as supplier) and reduce prepayment with each monthly installment.
Once we created prepayment for an employee as supplier. How would we reduce it, normally we set it off against Standard Invoice. Should we create invoice with negative amount.Please give your comments
Create a Prepayment for Loan amount with the type of Temporary. Then Every Month When he pay the installment amount at this time apply to the prepayment invoice with standard invoice. The Standard invoice is create based on the installment amount.
I Think this will be useful for you work around on this issue
Thanks & Regards