FPI1 and FPINTM1 Interest Calculation Formula flexibility

[SAPSupport]

Hi,

Recently we come across a user requirement to set monthly interest for overdue items.

The requirement needs the interest to charge for a whole month, even though it is only overdue only for part of the month. (e.g. If the monthly interest rate is 7% and it is overdue for 10 days instead of 30 days a whole month, the interest rate of the overdue items is still 7%)

Based on my knowledge, currently the FICA interest calculation sticks to pro-rata the amount into number of days (i.e. using the number of days in year as denominator, like 360, 365, 366, etc.)

So my questions are:
1. Is there any standard way to configure like what the requirement needed?
2. Or is there anyway to define our own formula for interest calculation?
3. Does SAP provide any FM or other way to check how the interest is calculated in the defined formula? This is very helpful when try to verify the accuracy.

Since this impacts the revenue so this item priority has become high and would appreciate prompt response. Thank you.

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[SAPSupport · Accepted solution]

Hello,

in customizing, transaction ficaimg under Business Transactions => Interest Calculation => Item Interest Calculation => Define Interest Calculation Rules, you can find the field 'Monthly Interest Calculation' behind the calculation rule (field V_T056G-IMONTH). In the F1-help you can find the following information:

"You can calculate interest on the basis of months that have been completed or months that have been started.

In each case this concerns interest calculation relating to a key date in the month.

Example 1

Interest has never been calculated on a particular item before and is now to be calculated for the period from April 10, 2004 to May 15, 2004.

A) Months started:

Since these dates occur in two consecutive months, interest will be calculated for two months. The interest rates applicable on the two dates are used. The key date used for the month is '10'.

B) Months completed:

On May 9, 2004 the first month is complete. The second month will only be complete on June 9, 2004. Interest will be calculated for one month only and the key date will be '09'."

Please check the F1-help for additional information.

Furthermore, the FI-CA event 2090 is interesting. Here you have the chance to influence the interest from-date and interest to-date to fulfill additional requirements. Please get in contact with your implementation partner in case you have additional questions.

Best regards,
Ronny