Correct way to Waive off Loans for Employees


We have a need for Waiving off Loan for Employee.
Case: Loan was created for Repayment from Salary, but due to Covid situation, employee was relieved for his safety and now outstanding loan installments need to be waived off.

What is the correct way for recording such entry?

Similarly, what could be correct way for Writing Off such Employee Loans which convert to bad debts (Employee becomes Absconding).


@VamYip The feature to write off loans is currently not available in V12 but has been added to V13.

I couldn’t find in code. Anyways, currently we are on v12 and need some way to record this without making a repayment entry.