Credit card surcharge for Direct debit (credit card) payments

[Former Member]

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

[Former Member · Accepted solution]

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

[rahul_paldiwal2 · Accepted solution]

Hey Rajeev, Did you tried enhanced returns processing as well during returns ?

[former_member199199 · Accepted solution]

Hi Rajiv,

The return process should be able to reset clear; please double check the reason behind return failure. Maybe it is failing due to missing account determination of reset clearing document.

Regards,

Bodhisattwa

[AmlanBanerjee · Accepted solution]

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

[Former Member]

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

[AmlanBanerjee]

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

[Former Member]

Hi Amlan,

Thanks for your reply. Yes, your assumption is right.

We had thought of Option 1, and then discarded it. The reason is partial payment by the customer outside of his dd (credit card) schedule. eg: we post $1 during invoicing as a fees for his $100 invoice due on 15th April. If the customer goes and makes a cash payment on 1st April for $50, then the charge posted has to be adjusted. The surcharge on the outstanding amount at the time of payment run on 15th should be ideally a % of $50 (and not $100 as we have initially posted). This will cause a lot of complication on the customer's account as well the invoice. So, we decided not to go ahead with this.

Regarding Option 2, I will explore and see how it goes.

Thanks for your help. If you think of any other way to achieve this (other than doing it in the DD Run), please let me know.

Thanks

Rajiv

[AmlanBanerjee]

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