Creating New Receivables

[KASTENNIS70]

This is not for an ISU but rather FICAx.  I can not locate the FICAx sub-area in SCN.

My scenario:  The loan monthly A/R is a planned A/R to the customer.  If the customer pays early or late, then the split of principal/interest is modified at payment time. 

I have an external billing system that is submitting a monthly item and a billing document is generated in FICA of 1,000.00 due on 6/1/2014

Payment rec'd for 1,000 on 6/20/2014 (interest must be calculated from 6/1 to 6/20) 

There must be entries posted to principal and interest at time of payment and the amount that it will be at billing time versus payment time will 90% of the time be different.  This is why there are not multiple A/R postings at billing.  I was trying to reduce the complexity of splitting in billing, then reversing and recreating new docs when the payment arrives based on the new interest/principal split.

My solution is a bit transaction verbose:

1.  we create a one line item FICAdoc of $1000 for due 6/1/2014

2.  payment comes in on 6/20/2014

     a.  calculate the interest due at this time

     b.  determine the split between interest and principal

     c.  create the new A/R documents with their unique main/sub to post the newly determined split of principal & interest

     d.  perform clearing which will apply the payment according to clearing variant interest first, then principal.

Any suggestions from the FICA experts?

Many Thanks

[AmlanBanerjee]

Hi Kelly,

Going though your requirement, I feel the payment processing is the critical point where in every activity has to be performed.

However, from your solution steps, I think that the reversal of original FICA document coming from the external billing system is missing.    

Also, you need to take care of the scenarios where-

(a) Over-payment\under-payment is made. 

(b) Any other adjustment clearing is made against the invoice.

I think event 0020 and 0030 will cater your requirement.

Event 0020 enable additional action to be initiated where a document is posted in Contract Accounts Receivable, and open items are cleared at the same time

So once the payment comes in it will trigger this event, where in you can-

Step-1-Calculate the interest due at that point of time

Step-2-Determine the split b/w principal & Interest

Step-3-Post new documents with unique main\sub

Step-4-Reverse the original FICA document from the Billing System.

The clearing will happen from the configuration where in you can set the main\sub for interest to be cleared first.

Hope it helps...

Thanks,

Amlan

[Former Member]

Hi Kelly ,

                    I believe adjusting the customer first late  payment to both "principal" and " interest" would be a wrong process because the company hasn't mentioned the interest charged in the consumer bill(as it is not calculated yet) ,the ideal way should be to

1) post the payment to clear the overdue items

2) create a z-transaction to calculate the interest and post (based on clearing date and what type of entries should be include in interest calculation .(This should run just before next invoicing run, maybe in an invoicing user-exit ).

3) Put restriction "8" on interest posted .(so that due date is aligned with next invoice due date).

4) Represent the interest in the consumer,s bill clearly identifying what is the interest and overdue items .

5) when customer pays the next bill clearing can be done to clear the interest first and then the overdue principal items .

plus there is a problem with your above logic if the customer make a full payment (although late ) then you would be allocating some of the payment to interest leaving behind some of the original principal on which a second interest can be calculated (although the customer has paid the full amount).