Advance payment interest calculation

[Former Member]

Hi,

        We need to implement advance payment from customer functionality , for that we have planned to put advance payments made by customer as on account payments , which will get cleared (allocated) to bill generated for customer at later dates. But we have to calculate interest on the payment amount every six months . for that we have updated an interest key to the payments made by customer . now when we calculate interest on the payment only payment amount (Credit) which is open on the day of interest calculation , interest is calculated . but the item which has been cleared is not available for interest calculation . we are using FPI1 and FPINTM1 to calculate interest . Is there any way we can calculate interest on the cleared amount.

Example --

On-account payment - 1000  on 01.04.2013

partial clearing on 15.04.2013 with bill .

item-1--On-account payment - 700   (Open)

item-2--On-account payment - 300   (cleared)

currently system calculates interest on item 1

item-1--On-account payment - 700   (Open)  

what we need

interest calculation on

On-account payment - 1000  till 01.04.2013----15.04.2013 (because the item was open till this date )

On-account payment--  700        16.05.2013-- till interest run date (because its still open )

Is this functionality achievable using the FPI1 or FPINTM1

p.s

1) In the define interest key we have selected -- consider all items for interest calculation

2) In FPI1 we have selected option credit item and all items in interest parameters.

[Former Member]

Hi Santrupta,

I am not an expert in this area, but maybe the clearing reason used is blocked for interest calculation?

Or you can check by debugging LFKI1F01 (think it is used when performing interest calculation), routine 'analyse_items' --> within this routine additional line items are selected if you have selected 'consider all items for interest calculation' (iallz) in the customizing setting for the interest key. Maybe from there on you can check if the item is selected and/or verify why it is disregarded during further processing.

Regards,

Bob

[william_eastman]

Santrupta:

The interest parameters allow you to calculate interest against open items, cleared items or both.  Check the params you are using and try using it with setting for both.

regards,

bill.

[AmlanBanerjee]

Hi Santrupta,

Fully agree with Bill.You can find the option in the interest calculation transactions FPI1\FPINTM1 it self.

The option in the interest parameters that you have to choose would be-

Debit and Credit Items

All Items

However, I am not sure how this clearing is happening b/w the payment amount and the Bill item.

I hope its through account maintenance\auto clearing.

Just check whether the clearing reason 08\15 are not maintained  in the following SPRO config, otherwise interest will  not get calculated.

SPRO-->Financial Accounting-->Contract Accounts Receivable and Payable--->Business Transactions-->Interest Calculation-->Item Interest Calculation-->Define Clearing Reasons for Which Interest is not Calculated

Hope it helps...

Thanks,

Amlan

[Former Member]

Hi,

     Thanks Bill,william and Amlan for replying .

Amlan -- yes the clearing is happening through account maintenance clearing reason 08.And we have not maintained the clearing reason 08 or 15 in the IMG activity Define Clearing Reasons for Which Interest is not Calculated.

When we run FPI1 we do get the cleared line item in the screen , but it is not available for interest calculation , when we click on the Icon of  the cleared line item we get the message "Item was already cleared before due date"

Please check the screen shot with doc Number 040030052062

where the this amount 81060 is available for Int Cal

           and     amount 10460 is not available for int Cal clearing date -25.06.2012

[AmlanBanerjee]

Hi Santrupta,

Check and implement SAP note 1650652.

I think this would resolve your issue.

Also check SAP note 1719255

Hope it helps...

Thanks,

Amlan

[william_eastman]

Within standard, interest(for open or cleared item) can only be calculated if the item is open past due date. You might need to check the payment terms configuration for credits so that it populates the current date and not some future date.

[Former Member]

Hi All ,

                Implemented the notes suggested , still does not calculate interest on cleared credit item , gives the same error , raising a issue with SAP . will keep updating .

[Former Member]

Hi Santrupta,

In addition to the post of William: did you verify the clearing date vs the interest base date (due date)? Because if I look at your popup in the included screen image: this is raised if the clearing date is lower or equal to the interest base date.

Maybe you did already, just giving you some options to check:

1. for the clearing, a clearing date in the past is used which is lower or equal to the interest base date. Both can be found in table DFKKOP fields AUGDT and FAEDN.
2. or maybe the interest base date / interest to date is determined alternatively in your system? (for example event 2065 is active or maybe note 1390966 is used)

Regards,

Bob

[Former Member]

Hi Bob ,

               I did not get your point regarding interest base date , if you mean that clearing date should not be less than or equal to interest due date , than probably we cannot calculate interest on any credit item which have been cleared ,as i cannot think of a scenario where clearing date will  be greater than interest due date , it can only be blank otherwise .

I am explaining what i did

1) I took an on account payment -100000 on date 08.08.2011 whose due date is-08.08.2011(same date as posting date)

2) Then i raised an debit in the CA  of 10000 on date 08.08.2012, due date =26.08.2012 (payment terms 18 days )

3) I did an account maintainence by giving in fp06 posting date = 28.08.2012

4) I am calculating interest on 08.08.2013 

screen shot attached

parameters on which interest is run in fpi1

event 2065 is Not active and note 1390966 is not used)

[william_eastman]

If you click on the help button (question mark) you will get the details as to why the interest cannot be calculated. 

[Former Member]

Hi Santrupta,

By interest base date I mean due date. So if the item is cleared before due date (lower or equal) than there will be no interest calculation.

So looking at your printscreens: in your first printscreen I see a clearing value date of 08.08.2011.

The amount of -100000 is due 08.08.2011.

If I am not mistaken, in this situatoin your clearing value date will be used for determining interest calculation and not the date on which you performed the clearing / posting (28.08.2012). So therefore the item will not be calculated for interest as clearing value date 08.08.2011 is equal to due date 08.08.2011.

Maybe you can check.

Regards,

Bob

[Former Member]

Hi Bob,

            you are absolutely right when you say clearing value date will be used for determining interest not the clearing date, but then how can i make  the clearing value date to be greater than the due date of the on account payment , there seems no way to do it , as i find the clearing value date is always equal to due date of on account payment no matter when the clearing takes place , can you suggest me a standard procedure which does this.

[Former Member]

Hi Santrupta,

Is your 100000 a payment on account or a payment coming from a payment lot? Because if coming from a payment lot I believe the payment date (in your example 08.11.2011) is used as clearing value date when clearing.

Otherwise have a look at event 233 and its documentation maybe this will help you. Regarding payment on account, I think  this is handled via main/sub transactions.

Regards,

Bob

[former_member316563]

Hi Santrupta,

Your scenario can be treated in two parts:

1. You trigger computation of interest during clearing against advance payment by activating event 2055. This you can do by checking "Interest posting with clearing is OK" in config path "Contract Accounts Receivable and Payable → Basic Functions → Postings and Documents → Basic Settings →   Maintain Central Settings for Posting"
   Read the documentation provided for event 2055 for further information. You will have to customize the FM called by the event to suite your business requirement.
   
2. For the remaining open credit you may compute the interest as per standard functionality.

Hope this solution helps....

Regards

Satyajeet

[Former Member · Accepted solution]

Hi

        just got reply from sap ,event 2065 needs to implemented with customer logic for the above process to work .

Thanks Bob, Amlan , william , satyajeet  for helping out .

Issue resolved .