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Late Fee & Interest Charges

dattatreya1988
Explorer
0 Kudos

Hi All,

My client has a requirement in which after the payment due date is over for an invoice, when dunning the customer, an invoice has to be created which will have the fixed late fee & interest on the invoice amount. Late fee is fixed & interest is based on some calculations. A separate F2 invoice has to be created with late fee & interest fee with some additional markings to distinguish it from other F2 invoices. A separate accounting document has to be created.

How this scenario can be configured in SAP & how late fee & interest amount should be maintained.

Also kindly mention which work has to be done by SD consultant & which work by FI consultant.

Thanks,

Dattatreya N R

Accepted Solutions (1)

Accepted Solutions (1)

dattatreya1988
Explorer

Hi all,

We have successfully implemented above scenario as below:

For late Fee: Late fee is a constant amount which will be charged to customer if invoice is not paid after payment due date. We have stored these constant values in a Z table. We are checking all open invoice which have crossed payment due date. The create a debit memo request with material as LATE_FEE. In pricing procedure we have a condition type to hold late fee amount. We are passing late fee amount from Z table to this condition type during order creation.Based on dunning level, we have different charges.

For interest charge: Interest charge is a amount calculate as interest percentage X No of days over due/365. This is applicable for invoices which are paid after payment due date.We will use SAP standard T-Code FINT to calculate interest and this amount we will take and use to create a debit memo request with material as INTEREST_CHRG.In pricing procedure we have a condition type to hold Interest charge amount. We are passing Interest charge amount from Z table to this condition type during order creation.

Thanks,

Dattatreya N R

Lakshmipathi
Active Contributor
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Appreciate the gesture of updating the forum promptly.

G. Lakshmipathi

srinu_s1
Active Contributor
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Thanks for updating.I think many people are missing this

venu_ch8
Active Contributor
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This message was moderated.

Answers (3)

Answers (3)

phanikumar_v3
Active Contributor
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Firstly we have to appreciate your nature of updating forum--( not Just asking and disappearing after some days)....Complements for your reply...

"""""We are passing late fee amount from Z table to this condition type during order creation.Based on dunning level, we have different charges""""

May i know how you made this possible?

Have you maintained any scales to capture the amount based on over due days??? or any other enhancement???

Phanikumar

dattatreya1988
Explorer
0 Kudos

Hi Phanikumar,

Late fee is a fixed amount. This solution was for Norway,Denmark,Sweden and Finland.

For Denmark late fee should be charged at dunning level 1,2 & 3. And for other 3 countries late fee should be charged only at dunning level 2.

We have saved fixed late fee amount (For ex late fee amount for Norway is 63NOK) in dunning procedure configuration.And we have stored information about which dunning level to charge in Z table.

Then based on the country for which late fee is being charged, we will check in Z table where it is eligible for late fee, if yes then we fetch late fee amount from configuration tables and pass it to specific condition type. In standard BAPI for sales order creation, we can pass vales to specific condition types.

And for interest charge there in SAP standard T Code FINT, which calculates interest charge based on customer, invoice, interest charge etc. We are using this T code for interest calculation and giving this value for specific condition type when order is created.

Thanks,

Dattatreya N R

dattatreya1988
Explorer
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I will provide some snapshots for a clear picture.

Late Fee process:

Note the material used is LATE_Fee. It has fixed charge 100 DKK if the customer has not paid the invoice after due date.

Note the condition type ZLLF used to hold the value of 100 DKK and MWST for output tax.The value 100 DKK is based on the dunning level of the customer and is stored in FBMP T code as shown below.

Interest charge process:

Note the INTERES_CHRG material and the value. This value is derived from the value of original invoice (Which is already paid by customer after due date) X No of days it is paid after due date X interest percentage %. This calculation is automatically done by SAP through FINT T code. We just got the value from FINT and provided it in order, condition type ZLFE.

Interest percentage are stored based on interest indicators in OB42 T Code as shown below.

Mention this interest indicator (Z1) in customer master>Company code view->Account management tab->Interest indic.

The order creation is done by program which runs as batch job. and billing takes place as per usual standard billing job.

Thanks

Dattatreya N R

phanikumar_v3
Active Contributor
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""""Note the INTERES_CHRG material and the value. This value is derived from the value of original invoice (Which is already paid by customer after due date) X No of days it is paid after due date X interest percentage %. This calculation is automatically done by SAP through FINT T code. We just got the value from FINT and provided it in order, condition type ZLFE"""""

Can you provide us the detailed screens on your above explanations.

(like FINT calculations,Condition record maintenance at sales order level & VK12)

Why your second screen calculating in different currency Late fee in NOK (Vs) Interest charges in DKK...

Phanikumar

dattatreya1988
Explorer
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Hi Phanikumar,

This solution we implemented for 4 Nordic countries (Denmark, Norway, Sweden & Finland). Hence different currencies.

Only for MWST I have maintained condition record for zero value.For Late Fee and Interest charge we are passing value to condition types while creating order through program.

FINT is a standard T code. You can get details if you search in Google.

Thanks,

Dattatreya N R

Former Member
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Dear Ramachandra,

According to your requirement, first u have to create dunning procedure and interest calculation indicator

assign both in customer master data in company code tab page.

Use ob42 maintain interest rate as per your requirement along with interest calculation indicator.

Then go to F150 tcode and run.

Regards,

Deepak

eduardo_hinojosa
Active Contributor
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Hi

See the IMG tools and documentation in this path of SPRO

After, run F150. The charges (if my memory works) will be a new open item. You can made correspondence (forms) with information about charges.

Please, see also SAP Note 543743 - FAQs for dunning, and related notes. You can enhance this functionality with a lot of BTE (see SAP Note 156985 - Reference Note: BTE for dunning).

I hope this helps you

Regards

Eduardo