Loans Management - Unplanned Interest Payments

[Former Member]

Hi Experts,

Good day!

I would like to seek your inputs to this issue below:

Scenario: Loans Given transaction

• Two year loan transaction with installment repayment at the end of each year
• Nominal interest to be paid at the term end date. Accrual for posting posted every month. Interest rates changed every quarter.

To satisfy the basic requirements above, we create loans with the following condition items

• Installment Repayment  ( 2 - one at the end of each year)
• Multiple Nominal Interest ( 1 per quarter. Effective dates ajusted accordingly. Also, all DUE DATES are set as the term end

QUERY:

Loan recipient sent payment specifically for the INTEREST even though it is not yet the interest due date. HOw do we we reflect this in the transaction such that it will still take the original nominal interest calculation, and just subtract the interest payment amount from the remaining balance. Client wants a scenario like condition type Unscheduled Payment, but only for interest where it will deduct amount from the interest to be paid at term end.

If we try to create a new Nominal Interest condition item with a specific amount and due date, SAP will treat this a a new interest ON TOP of the current interest provided. This is not the business case.

Kindly advise on how to reflect this in SAP.

Please let me know if you need further details so i can provide them Thanks in advance for your time!

Regards,

Kristian

[Former Member]

Hi,

Can you try posting the interest payment (future interest payment) with the day's posting date.  I guess we can do that in FNM1.  Include the upto and including payment date to include the interest payment.

Also I guess there is one functionality to post future interest payments and infact map the incoming payments to split among different conditions.  I will check on that and let you know more details.

Regards,

Ravi

[einar_eirksson]

Hi.

I guess you have already recieved the payment and it has been posted to the loan as an overpayment.

If you have not posted the next due date then you can perform an advance payment through FZNB - Payment Postprocessing. Then when you post the interest it will be automatically cleared to the advance payment.

If you have posted the due date then you can also use the FZNB - Payment Postprocessing to clear the incoming payment to the customer open items, by selecting the correct posted interests.

Also if this is a case you want to handle in the future you should consider setting up the "Incoming Payment Distribution" to handle these kinds of advance payments.

Br, Einar.

[Former Member]

plz provide me some additional details i got u r point if u can give some more details then i can try to resolve u r issue

[Former Member]

Hi kristian

gud mrng first of cretae an interest indicator and create the reference rates of intersest and detine time dendent terms per quarter if u define reference trates and interst indicators then change the interest rate indicator in the gl a/c master record per quarter