Late payment interest calculation scheduling

[Former Member]

Hello SAP users,

We are in the process of implementing interest calculation on customer arrears using FINT.

In mentioned that "Interest run is scheduled monthly at the end of the month".

Is it common practice(or best practices) to run the interest calculation on a monthly basis?

Our user has indicated that they to want to run interest daily but then an outstanding invoice would get interest applied every day(which is not what they want)....Is there a way to not charge interest on an outstanding invoice for which interest has been applied in the last 30 days other than not to run the FINT transaction(for the 30 days)? How would the SAP system determine this?

Thanks.

Colette

[former_member215295]

Hi Colette,

You can run the interest program daily , running daily doesn't mean that interest will get posted on the same charges every day .

If there is a arrear for $100 due on March 1st 2015 , say you gave grace periods as 4 days, interest program on March 5th will post interest once, when the interest program runs again on march 6th it will not calculate interest again, system knows that interest is already calculated once on this account.

Thanks,

Vikram

[Former Member]

Thank you for your response, Vikram.

In my testing, running the interest program the next day, March 05 in your example, will result in one more day of interest charged:

Day 1: Interest run for Customer 10000056

(Test data - Invoice outstanding for several years/many days)

Customer		1000056
Company Code		MH01
Interest   Items		1
Date	3/23/2015
Person   Responsible		CMJAMIESON
Year	DocumentNo	Itm	Int. From	To	Days	Base Amnt	Int. Rate	Int.Amount	Status
2002	100011255	1	9/15/2001	3/23/2015	4,938	10,000.00	15	20,280.80	PROCESS

Day 2: Interest run for Customer 10000056:

(One day interest charged)                                              

Year	DocumentNo	Itm	Int. From	To	Days	Base Amnt	Int.   Rate	Intrst	Status
2002	100011255	1	3/24/2015	3/24/2015	1	10,000.00	15	4.11	PROCESS

And the Aged Accts Receivable shows both interest amounts being posted:

1000056 CANADIAN CUSTOMER			Current	over 120 Days
Document   No.	Date
1600000252	3/23/2015	3/23/2015	*20150323	20,280.80	0
1600000253	3/24/2015	3/24/2015	*20150324	4.11	0
100011255	8/15/2001	8/15/2001	90000413	0	10,000.00

Unless there is something different that you have done in Configuration? 

Please let me know if you have any questions.

Thanks.

Colette

[william_eastman]

Colette:

You can set the frequency in the interest key.  If you set it as daily, then the system will try to calculate daily.

regards,

bill.

[Former Member]

Hello again,

1) You may want to read the 4:58 pm post as a pdf to see the full screen.

2) Where would one locate the "Interest key"? Config? FINT?

Please assist.

Thanks CJ

[Former Member]

Hi CJ,

You can configure the Interest calculation frequency(Daily, Monthly, Yearly) in the Interest key configuration. IMG path Contract Accounts Receivable and Payable --> Business Transactions --> Interest Calculation --> Item Interest Calculation --> Define Interest Key.

For Ex: if you configure the frequency to 1 month, Interest won't be charged on the same item even if you run interest calculation every day.

Regards,

Suresh

[Former Member]

Hi, Suresh,

Sorry but when I go into :

Business Transactions --> Interest Calculation --> Item Interest Calculation -->

I see details for the Interest indicator that I created earlier but no "Define Interest key"....?

Not sure why that is missing...?

CJ

[Former Member]

Update;

As previously indicated, the "Interest frequency" is not available to me in Config under the path provided, however, I now notice that we are using a function module and that is perhaps where the Interest key is being stored. I will keep you posted.

CJ

[Former Member]

Hello again,

Was not successful in getting more info re: function module...going back to Suresh's response:

"You can configure the Interest calculation frequency(Daily, Monthly, Yearly) in the Interest key configuration. IMG path Contract Accounts Receivable and Payable --> Business Transactions --> Interest Calculation --> Item Interest Calculation --> Define Interest Key."

Is this available within OB82? Can you please provide me with a screen shot where this Interest key/Interest Frequency field is displayed?

This will be much appreciated. Thanks.

Colette

[william_eastman]

Colette:

Aha! - you are using an FIAR transaction, while we are only concerned with FICA here.  You should move this thread to the ERP Financials space

regards,

bill.

[AmlanBanerjee]

Hi Colette,

You can find the interest frequency under the following SPRO config. for FIAR

IMG-->Financial Accounting (New)-->Accounts receivable and Accounts payable---> Business Transactions--->Interest Calculation--->Interest Calculation Global Settings---->Prepare Account balance Interest Calculation.

Select the Interest Calculation Indicator and click on display.

In here you will be to set the Interest frequency (in months) for the Account.

Hope it helps

Thanks,

AB

[Former Member]

Hello AB,

In your example above, you are using the "Prepare Account balance Interest Calculation".

Our users would like us to calculate interest on the item not on the account balance, so we are using the "Prepare Item Interest Calculation". How do you set the Interest frequency for the Item interest calculation?
Colette

[AmlanBanerjee]

Hi Colette,

If you are calculating interest on the customer\vendor, then the interest calculation type that is to be used is P,.i.e. item Interest calculation.

If you are calculating interest on GL A/c, then the type is S, i.e. Balance Interest calculation.

SAP does not allow to set the interest frequency for type P.

It only allows to set the interest frequency for type S.

Thanks,

AB.

[Former Member]

Hi AB,

Why is the Interest frequency not available for calculating interest on the customer\vendor with  interest calculation type P -  that is, item Interest calculation?

In a previous response from Suresh, Suresh indicated that:

"You can configure the Interest calculation frequency(Daily, Monthly, Yearly) in the Interest key configuration. IMG path Contract Accounts Receivable and Payable --> Business Transactions --> Interest Calculation --> Item Interest Calculation --> Define Interest Key."

I seem to be getting conflicting responses.....

Colette

[AmlanBanerjee]

Hi Colette,

The response that Suresh gave is for ISU FICA (Contract Accounts receivable and payable), where as the response that I gave in my last post is in SAP R/3 (Accounts receivable and payable).

The two configuration nodes are mutually exclusive.

If you are looking for calculating interest on R/3 customers, you have to go through the SPRO config. node that I have given, where as it seems you are looking for the interest calculation functionality in IS-U, then you have to use config. node that Suresh has stated in his post.

Hope it clears your query

Thanks,

AB

[Former Member]

Hi AB,

I am definitely looking for calculating interest on R/3 customers - Accounts receivable and Payable).

Do you know why the Interest frequency not available for calculating interest on the customer\vendor with  interest calculation type P -  that is, on item Interest calculation?

And so returning to my original question(March 24 2015):

Our user has indicated that they to want to run the interest program daily but then an outstanding invoice would get interest applied every day(which is not what they want)....Is there a way to not charge interest on an outstanding invoice for which interest has been applied in the last 30 days other than not to run the FINT transaction(for the 30 days)? How would the SAP system determine this?

Colette