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Former Member

LPS calculationin FICA flat percentage

Hi Guys,

I need to configure the LPS (late payment surcharge) in FICA, the requirement is, if the consumer does not pay the bill before due date he has to pay 25% of water charge as penalty, suppose a consumer Jan-2016 month bill is Rs 100 and due date to pay this bill is 15 Feb if this consumer did not pay till 15th Feb he has will be charged 25% of 100 i.e Rs25. so this LPS amount will reflect on Feb invoice before we generate the feb month invoice on Month end will run the LPS program so automatiallt 25 rs will be added in Feb invoice as LPS.

but if consumer did not pay Jan bill on feb also even in march also there will be no penalty on Jan month bill. which means only one time penalty has to calculate on one particular invoice if it is not paid on due date.

if consumer pay the jan bill on 16th feb he has to pay rs25 as penalty even he pay the jan billl on Decemeber also he has to pay Jan bil wih Rs 25 as penalty.

could you please give me the complete guide on this,

Regards,

Ajit

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3 Answers

  • Aug 08, 2016 at 07:24 AM

    Ajit,

    You can met your requirement by configuring the charge schedule in Dunning process, assuming, that in your business process, dunning is triggered for over due items.

    You need to first configure the following-

    (a)  Define Charge categories for Dunning

    (b)  Define Doc Types for Dunning Charge categories

    (c)  Configure Charge schedule for Dunning Procedure.

    In Point (c), you need to configure the main/sub and the percentage.

    Also make sure that the charge that gets posted is posted with clearing restriction 8.

    Now create a dunning level which will trigger on due date and assign the charge schedule and the charge against the dunning level.

    So now, once the invoice item is not paid within the due date, dunning process will trigger on the due date and will post the charge based on the percentage against the account with clearing restriction 8.

    Once the next invoice is generated, it would pick the charge automatically and send it to the customer.

    As this charge is assigned under dunning level, so it will not trigger the same charge for the same invoice in a normal scenario, until and unless you perform a dunning reversal, for which you need to take care in event 360.

    Hope it helps..

    Thanks,

    Amlan

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    Former Member
    Aug 11, 2016 at 04:01 PM

    Hi Ajit,

    You can define interest key in the configuration and assign it at the contract account level or contract level or at document level.

    To achieve the requirement of charging only once you can define the key and keep the interval as years and give 99, meaning once the interest is charged customer will not be charged for next 99 years, anyways within few years  it will go through write off.

    You can run the  the interest program daily and the LPC charge will sync with your regular bill.

    thanks,

    Vikram

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  • Aug 11, 2016 at 04:59 PM

    Hi Ajit,

    The solution provided by Amlan is probably the best solution, but if you do not want to, or your business does not allow you to involve dunning with the LPC, then you can do an enhancement in the event R411. There you can check if the outstanding of the previous month (based on main sub transactions) is cleared or not, and again if cleared then if the same is cleared on or within due date or after due date and use the FM BAPI_CTRACDOCUMENT_CREATE to post the LPC. By this solution approach the system will never post LPC twice on an unpaid outstanding.

    Note: Take care of the LPC posted on the contract account while reversal and re-invoicing scenarios. This situations can again be taken care with enhancements in the event R471.

    Let me know if this approach adds some value to your doubts.

    Sourav

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