Interests on Sales Orders

[Former Member]

Hello Community!

Kinda strange new look for the forum, can´t seem to elmimante the space between lines...

I need to know how can i set specific interests for each sale based on the BP Payment Term on the sales order with the delivery note DocDueDate.

Thanks in advanced.

Regards,

Guillermo.-

[jitin_chawla · Accepted solution]

Hi,

First of all interest will not be calculated on the Sales Order or on Delivery.

Interest would only be calculated on the overdue amount in the Invoice. For that dunning functionality is available.

For calculating interest on amount based on the Delivery Due date you need to create a UDF and assign a customized query in FMS to calcuate the value of the interest % and then display in the UDF field. However, no posting of such interest would be made in the system.

Kind Regards,

Jitin

SAP Business One Forum Team

[former_member218051 · Accepted solution]

Hi jitin,

First of all thank you for correcting me.

I know that interest gets calculated on the overdue amount that is why i suggested for FMS.

By defining interest in payment terms set up i meant to define globally.

I apologies for making confusing statement "bound to travel from base to target"

thanking you

malhaar

[Former Member · Accepted solution]

Hello, Thank you all for replying so quickly.

What i need to do is to reflect the interest on the invoice when a delivery is invoiced to the client under the payment term configured with the annual interest.

What's FMS?

Thank you.

Regards,

Guillermo.-

[former_member218051 · Accepted solution]

Hi,

FMS is a formatted search query in which you can populate a field on validating certain conditions by capturing on screen information.

Generally FMS are used where we do not want an input from user but data in it for some additional purpose like calculation in your case.

for FMS you need to design a query in query generator and save it. do not execute it. It will give an error.

Go to Tools ----> customization tools ------> User Defined Values -- Set up

Select search in existing user defined values according to saved query .

Select the recently saved query.

and set your query to execute on change of the field.

hope this will help you.

Thanking you

malhaar

[Former Member · Accepted solution]

Hello Malhaar, Thanks for the answer about FMS

Quoting Jitin: "Interest would only be calculated on the overdue amount in the Invoice. For that dunning functionality is available."

As i understand, if i configure the interest on the payment term, that interest will be reflected on the invoice based on the creation date of the sales order?

And if i want to reflect the interest based on the docdate of the Delivery note i need to write the Query?

Thank you.

Regards,

Guillermo.-

[former_member218051 · Accepted solution]

Hi ,

Dunning is a wizard which helps you monitor customers liability in terms of invoices , cr. notes , stand alone receipts , manual JEs and the BP balances.

You can set up an options and run this wizard to generate the receivables and send the reminders to BPs periodically. This is the basic idea of dunning

As far as interest calculation is concerned then you can do that too in dunning.

Use the Dunning Terms - Setup window to determine how interest is calculated. The following examples demonstrate each method.

Prerequisites

1.   There are 30 days in each month. 
2. There are 360 days in a year.

Example

due date                              document type                                   amount

01.01.03                              invoice                                             10000

01.02.03                              payment                                            3000

Remaining Sum is 10000-3000 = 7000

Interest rate is 7% and the dunning wizard is processed on 01.03.03

7000X7%X60*/360 = 81.6667

* number of days counted since the due date of the invoice and the date in which the dunning wizard is processed.

due date                              document type                                   amount

01.01.03                              invoice                                             10000

01.02.03                              payment                                             3000

Interest rate is 7 % and the dunning wizard is processed on the 1.3.03

(10000X7%X30/360) + (7000X7%X30/360) = 99.16666

The value of the first parenthesis is the interest that was accumulated until the first payment was created.

The value in the second parenthesis is the interest accumulated until the wizard was processed.

I hope I've conveyed you the diffn. between dunning and FMS.

you will have to figure out your exact requirement and decide upon accordingly.

Thanking you

Malhaar

[Former Member · Accepted solution]

Hello Malhaar, Thank you for the detailed Response.

I'll determine what option is more convenient after investigating a little more.

Thank you.

Regards,

Guillermo.-

[former_member218051]

Hi,

In the payment terms set up window there is a field INTEREST % ON RECEIVABLES which states that

Define the annual interest rate to charge for open receivables to a customer with this payment term. This data is for information purposes only.

If you set the rate here per Payment term then it is bound to travel from base to target.

Apart from that if you are interested in any calculation then you have to set FMS or so I guess.

Thankiing you

Malhaar

[Former Member]

Hi Guillermo,

Sales Order is not an accounting document. I don't think you can easily setup anything with financial impact.

Thanks, Gordon