Interest Calculation

[Former Member]

Hi all,

How is it possible in SAP to charge interest on customers in case of payments made beyond a date. Terms of payment does not allow this interest(or Penalty) to be charged. How can it be done ? Kindly indicate.

Eg. If payments are not made within 60 days of the baseline date, an interest of 15% / annum will be charged on the customer.

Thanks in advance

[Former Member · Accepted solution]

Hi,

Here are steps for interest calculation:

1. Define terms of payments:

T.code: OBB8

path: img ->fin. accting -> AP AR 😆 Business transactions :->outgoing invoice and credit memo 😆 maintain terms of payment

2. Define Interest Cal indicators / type:

T.code: ob46

path: img ->fin. accting -> AP AR 😆 Business transactions 😆 interest calculation global settings 😆 define interest cal types

here in int cal type select ‘p’ for int cal on line items

3. Make Interest Indicator Available to Interest Run Program:

T.Code: ob82

path: img ->fin. accting -> AP AR 😆 Business transactions 😆 interest calculation global settings 😆 prepare int. on arreas

4. Create Reference Interest Rate:

T.code: OBAC

path: img ->fin. accting -> AP AR 😆 Business transactions 😆 interest calculation 😆 interest calculation -> define reference interest rate

5. Assign interest indicators to ref. int rate or define time dependant terms:

T.code: ob81

path: img ->fin. accting -> AP AR 😆 Business transactions 😆 interest calculation 😆 interest calculation -> define time dependant terms

here in sequnece # always use 1 for line item interest

6. Interest calculation account assignment:

Here we will mention how and which accounts the interest program should post.

T.code: obv1

path: img ->fin. accting -> AP AR 😆 Business transactions 😆 interest calculation 😆 interest posting -> prepare interest on arreas calculation (customers).

Reward points if u helpful

Cheers,

Govind.