Skip to Content
avatar image
Former Member

Advance payment interest calculation

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.

Add comment
10|10000 characters needed characters exceeded

  • Get RSS Feed

6 Answers

  • Best Answer
    avatar image
    Former Member
    Sep 19, 2013 at 05:00 AM

    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 .

    Add comment
    10|10000 characters needed characters exceeded

  • avatar image
    Former Member
    Jul 26, 2013 at 04:33 AM

    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

    Add comment
    10|10000 characters needed characters exceeded

    • 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.

  • avatar image
    Former Member
    Aug 06, 2013 at 04:33 AM

    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 .

    Add comment
    10|10000 characters needed characters exceeded

    • Former Member 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

  • avatar image
    Former Member
    Aug 09, 2013 at 12:11 PM

    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


    Add comment
    10|10000 characters needed characters exceeded

  • avatar image
    Former Member
    Jul 25, 2013 at 02:08 PM

    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

    Add comment
    10|10000 characters needed characters exceeded

  • Jul 26, 2013 at 01:31 AM

    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.

    Add comment
    10|10000 characters needed characters exceeded

    • 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