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Former Member

Credit card surcharge for Direct debit (credit card) payments

Hi All,

I have a requirement to post a credit card surcharge for any direct debit (credit card) payments. The surcharge amount will be a % of the total outstanding amount for that payment run. I know additional line items can be posted through event 0032, and amounts can be modified through event 601. The requirement is:

a. Pick up the total outstanding amount for payment as per normal rules of FPY1

b. Calculate a particular % of the amount, post that amount as a surcharge on the account (debit), and send out the total amount + surcharge for payment

c. Clear the outstanding amount + surcharge immediately.

d. If payment is dishonored, then reverse the payment + surcharge (For this, I will need to create the surcharge document number and payment document number to be the same)

Can someone please help me with the relevant events where this can be done.

Thanks

Rajiv

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3 Answers

  • Best Answer
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    Former Member
    Mar 23, 2016 at 02:05 AM

    Hi Amlan,

    Thanks for your reply. We have tried to prototype the solution using event 0032, and we were able to post a debit and credit. There are a couple of issues in that:

    a. The payment list shows only the dd amount i.e if the invoice was $100 and fees was $1, then the payment list shows $100. If you drill down into it, then the $1 fee and credit are displayed. We will have to do modify account display to make it right.

    b. The bigger issue is with payment dishonour. The debit and credit which we posted get cleared through account maintenance and have a separate clearing document. When the payment is dishonoured, it comes with the original payment document. The returns process fails because part of the payment document (extra debit and credit) are cleared with a separate document. This needs to be reset cleared manually. Do you think we can get around this? This is a show stopper as returns cannot be processed manually by users.

    We have suggested the following option to the business:

    Run Credit Card DD simulation. Pick the amount from DPAY tables, modify the amount in the program which creates the file for bank and add the surcharge. Receive the file and create credit card lots. Post only successful payments to the account along with the surcharge. What is your opinion on this?

    Thanks

    Rajiv

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    • Hi Rajiv,

      Please find my response as follows-

      (a) I guess you are using a separate pair of main/sub tr. for posting the Surcharge credit.Now if you want that to show that in the Payment list, you need to configure that as a payment in the SPRO Node. IMG-->Financial Accounting-->Contract Accounts Receivable and Payable-->Basic Functions-->Postings and Documents-->Document-->Maintain Document Assignments-->Maintain Sub-Transactions.

      Check the Payment column against the pair of main/sub tr. used for posting the surcharge Credit.

      (b) With the second issue, that you are having, you can post the return lot with Enhanced returns tick and type of posting as '2-New Receivables, derived from payment'.

      Hope it helps...

      Thanks,

      Amlan

  • Mar 15, 2016 at 11:01 AM

    Hi Rajiv,

    In a nutshell, point (b) and point (c) will happen during the payment run at one go, and so there will be Surcharge debit document posted and the payment run will clear the oustanding receivables and the surcharge debit and will send it to the Bank./Credit Card Agency for processing.

    Assuming that's the sceanrio, there can be two options-

    Option-1-I would recommend you post the Surcharge debit charge during invoicing for the Direct debit Credit card customers.You can achieve this through event R402.

    And leave the payment run as it its. As per Standard functionality,it will pick up all the oustanding receivables and create a single payment document.

    If there is any reversal, the payment document will get reversed as a whole.

    Option-2- Using event 0032, you can post a surcharge debit item and a corresposnding credit item.

    The beauty of event 0032 is there is no addtional document number that you can create. You can only extend the line items for the existing payment document.

    So, for a given payment document number, you will have three line items-one Payment document, one Surcharge debit and one surcharge credit.

    In the payment medium, you can send the payment document only for the items less than Zero.

    The only thing with event 0032, is the surcharge debit and surcharge credit will not get cleared during the payment run and an account maintanance run have to be executed to clear them-off. Try to check this in your system once.

    Hope it helps...

    Thanks,

    Amlan

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    • Hi Rajiv,

      The other option is to post the surcharge credit in event 0032 with a particluar main/sub combination. So the payment document will contain the extra credit, which will be send to the Bank via the payment media.

      Now execute a standalone program after the payment run, which will retrieve the accounts for which the FPY1 was executed for the day for the credit card accounts, retrieve the surcharge credit amount and post an equivalent debit amount through FKK_CREATE_DOC_AND_CLEAR.

      So if a rejection happens, the whole amount (payment+Surcharge) will be reversed at one go.

      Thanks,

      Amlan

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    Former Member
    Mar 29, 2016 at 12:52 AM

    Hi Amlan,

    Thanks for your reply. Since we are posting a debit and credit through the event 0032, the items are setting off while displaying in the payment list. We might have to enhance the Payment list to display only the credit item posted through event 0032.


    Thanks a lot for your help

    Regards

    Rajiv

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