LPS Calculation

[Former Member]

Hi Friends,

As per business requirement LPS has revised from 1.25% to 1% upto 3 month from due date.

Please guide me what configuration steps I have to fallow to change the rate of calculation in FICA prospective and Billing prospective.

Many thanks in advance.

Regards,

Sri

[AmlanBanerjee · Accepted solution]

Hi Sri,

What do you mean by LPS? Please elaborate.

Is it something related to interest charged on overdue items?

If so, you have to go to T.code OB83 to make the changes in the interest rate.

Thanks,

Amlan

[Former Member]

Dear Bro,

Sorry for incomplete information.

LPS means Late Payment Sub-charge.(Nothing but interest) in IS-U FICA

As per my knowledge we need to change the LPS rate in below Path:

C.A Receivables & Payable---> Business Transactions----> Interest Calculation--->Define Percentage Rates for Reference Interest Rates .

Please find the below screen short for reference.

my doubt is whether we need to change some other settings or is it ok to change above path only.

Regards,

Sri

[AmlanBanerjee]

Hi Sri,

The configuration path is fine.

However, if you are changing the interest rate, you have to create another entry with a new valid from date. Don't make changes in the existing one, as it would have an impact on the existing cancel-rebill scenarios.

Hope it helps..

Thanks,

Amlan

[Former Member]

Hi Bro,

That is the my exact doubt. Thanks

so i need to create new reference key for new rate, right.

please confirm is there any another configuration required for this change except above path.

Many thanks

Regards,

Sri

[AmlanBanerjee]

You don't need to create a new reference key.

The only thing you need to do is to create another entry in the transaction OB83 with same reference key but with the new interest rate and a new valid from date.

I don't think you need to change anything other config apart from the above.

Hope it clarifies.

Thanks,

Amlan

[Former Member]

Thanks Bro

Regards,

Sri

[Former Member]

Hi Sri/Amlan ,

Though I am asking simple basic question but have requirement based on this if you could help it.

When we create interest key for LPC where we assign this so that system will calculate LPC % of due items ?

Thanks and Regards

Kumar

[AmlanBanerjee]

The Interest key is assigned at the contract Account level.

Cheers,

Amlan

[Former Member]

Dear Kumar,

As Amal bro told, you need to assign at contract account level.....

Regards,

Sri

[Former Member]

Hi Amaln ,

Thanks for the reply. Actually now my query is though we are giving fixed % of LPC in contract account irrespective of number of due days , but if we want to charge customer on the basis of number of days then how to handle this scenario like for first 15 days 1 % and then later 1.5%.

And also need to post different line items for all means separate line items for Invoice amount , LPC amount for 15 days and LPC amount after 15 days so that we can reverse it individually.

Thanks and Regards

Kumar

[AmlanBanerjee]

Hi Kumar,

I don't think so there is any SAP standard Solution for your requirement.

You have to develop an enhancement in event R402 (if you want to post the interest item at the time of invoicing) to cater your requirement.

Hope it helps..

Thanks,

Amlan

[Former Member]

Hi Amlan,

Thanks for the reply.Is it possible instead of mapping fixed LPC % in CA we can map different % of LPC as per the requirement with dunning levels and map it with invoice charges under Invoice Processing path.

Thanks and Regards

Kumar

[AmlanBanerjee]

Hi Kumar,

I am not very clear where you want to calculate the interest-during dunning or during invoice?

If you want to calculate during dunning, you can assign different interest keys at different levels and based on the triggering of each level, it will calculate the interest and post the interest document.

The mapping that you that you are talking about under the Invoice processing path, is 1:1 mapping of  the interest key against the dunning procedure.So, it will not help in calculating different interest amount for different keys...

Hope it helps...

Thanks,

Amlan

[Former Member]

Hi Amlan ,

Thanks for the reply. Actually requirement is to calculate LPC during Invoicing only.Anyway thanks once again. We will work to enhance the event which you mentioned above.

Regards

Kumar

[Former Member]

Hi Srinivas/Amlan ,

We have also revised interest rate from 3.50% to 4% effective from 01.06.2014. Now problem is that we have two open items of amount 1000(Due date 05.05.2014) and 2000 (Due date 07.06.2014). We are calculating interest on dunning. Though interest is calculating and posting also but for 1000 system is taking 3.50% and for 2000 its taking 4% till date of posting.

It should be like this-

                     1000 from 05.05.2014 to 31.05.2014- 3.50%

                     1000 from 01.06.2014 to till date - 4%

But for 1000 is taking 3.50% for the whole period.                     

Any suggestion to get this output.

Thanks and Regards

Kumar