interest calculation on overdue,credit balance & cash dicount

[former_member600294]

Hi gurus

we need to calculate the over due interest, interest on credit balance & cash discount on the customer balance thru system. What are the configuration settings required& also for reporting purpose what we need to do.Please explain in details

Thanks

shivaji

[Former Member · Accepted solution]

Hi

You can go about with configuration of interest on : (1) G/L account balances (arrear interest calculation); (2) interest on customer/vendor balances (item interest calculation); & (3) Configure payment terms for cash discount calculation (in addition to manual entry of cash discounts).

Hope the above would meet your purpose. If helpful, please reward points.

[former_member600294 · Accepted solution]

what are the configuration steps required for cash discount.

shivaji

[Former Member · Accepted solution]

To be able to post cash discounts, you must define an account determination for cash discount taken and cash discount granted.

For cash discount taken, choose:

Financial Accounting ® Accounts Receivable and Accounts Payable ® Business transactions ® Outgoing payments ® Outgoing payments Global Settings ® Define accounts for cash discounts taken

For cash discount granted, choose:

Financial Accounting ® Accounts Receivable and Accounts Payable ® Business transactions ® Incoming payments ® Payments Receipt Global Settings ® Define accounts for cash discounts granted

Please refer to the R/3 library and the IMG documentation for more details.

You may also want to use payment terms suitable for you business processes to trigger the automatic calculation of cash discount amounts