Negative Interest on arrears

[Former Member]

Hi Experts,

Could you help me out in stopping credit interest on arrears??

scenario: Post to re-estimation Interest on Arrears (credit) is getting calculated even on Credit consumption billing. Hence we need to stop this Interest on Arrears.

Thanks & Regards

Rehan.

[Former Member]

Hello,

I am also facing the similar issue. can anyone give some suggestions??

Regards

Neha Agarwal

[AmlanBanerjee · Accepted solution]

Hi Rehan,

Are using the Standard transaction FPINTM1 for calculating and posting the interest charges?

If yes, then you can adjust the interest parameters tab in the transaction to stop the interest calculation on credit items.

Select Debit items and All items in the interest parameter and that will help in restricting the interest calculation for debit items only.

Moreover, you can also add the condition amount >0 in the custom selctions tab so that the interest run only picks up the debit items for interest calculation.

If not, can you give some insight on the process that you are following for the interest posting.

Hope it helps....

Thanks,

Amlan

[Former Member]

Hi Amlan,

Thank you for the reply but we are not using Standard Transaction FPINTM1.

interest on Arrears calculation is working fine. but when we go for re-estimation of invoices, the payments that are already cleared, going to payment on account but interest on arrears that are cleared is becoming interest credit memo with Main and Sub Trans 0040 and 0030 respectively. hence we need to stop interest credit memo.

Thanks

Rehan

[AmlanBanerjee]

Hi Rehan,

Go to the following config node-

SPRO->Financial Accounting->Contract Accounts Receivable and Payable->Basic Functions->Postings and Documents->Document->Maintain Document Assignments->Maintain Transactions for IS-U->Maintain Transactions for Interest

Select the main\sub combination that you are using for posting the interest on arrears and check whether the field "Clearing Must Be Negative Posting" field is ticked or not.

If it is ticked, untick that as this field has the effect that the clearing of the item is carried out as a negative posting, provided that negative postings are permitted in the company code concerned

Else,

Need some more info... What main\subs are you using for posting the interest on arrears?

And How this is interest is getting posted? Thru invoicing or some other enhancement?

Also check if you have maintained posting area 1090\1091 for this set of main\sub?

Thanks,

Amlan

[Former Member]

Hi Amlan,

I have checked but "clearing Must be Negative Posting" field is not ticked.

Client is using Main/Subs 0800/0001/0002 for Debit entry migration/arrears for migration debit/arrears for migration credit respectively. moreover interest is getting posted through invoicing.

Thanks

Rehan

[AmlanBanerjee]

Hi Rehan,

When you are genearting the interest document thru invoicing, I suppose it is getting posted as seperate document no.,along with the current invoice.

So as per standard SAP, the interest document no. and the invoice should have the same print document no.Can you check that?

As per standard SAP, during cancellation of the invoice, you are actually reversing the print document,so it should reverse the interest document as well along with the invoice, and the payment will sit as payment on account.

However, in your scenario, the invoice is getting reversed, payment is sitting as open credit item..that's fine. But the interest debit item is reversed and creates a credit memo with main\sub 0040\0030.

I would advice you to check the following SPRO config-

SPRO->SAP Utilities->Invoicing->Basic Settings->Define Basic Settings for Reversal.

Check the Post clearing amount is set as Retain distribution to accounts or not.

If its set correctly, I would suggest you to place a debugger during the cancellation of the invoice.

Definately, there is some enhancement setting which is getting triggerred during the cancellation and creating the credit memo.

Hope it helps.

Thanks,

Amlan

[Former Member]

Hi Amlan,

I really appreciate you for giving us your valuable time.

Thank you for the suggestions/help.

Regards

Rehan