Min. days in arrears(acct) Vs. Line item grace periods

[Former Member]

Hi - Before i've decided to post this, i did looked into previous post. Most of the places it is not clearly mentioned and SAP Help is little cryptic. I hope someone over here can help me with your inputs.

Min. days in arrears(acct) Vs. Line item grace periods: First question- From previous posts, this sounds both are same. If that's the assumption, then why do we have two fields. There should be subtle difference which i couldn't understand...looking into further depth, one is talking about Account and other one is Line Item. At some place in SCN, they mentioned it should be same...for example...if arrears is 3 days...and Grace Period is 3 days...then dunning starts from 7th days...this sounds little funnnyy...if thats the case, then why don't  we have just one field where they we can mention 6 days directly...i know SAP is not that stupid enough to do that mistake....

Please help me understanding...Thanks.

[Marssel700 · Accepted solution]

Hi,

Days in arrears are related to dunning notice while Grace periods to due date of open items.

Help text:

Days in arrears after which a dunning notice will be sent
Days in arrears which at least one item in this account must have for a dunning notice to be created. These minimum days in arrears have no influence on calculating the days overdue.

Grace periods per line item
Grace periods per line item which are taken into consideration during determination of the due date for the dunning run.

An item whose days in arrears are smaller or identical to the grace periods, is taken as not due for that dunning notice.

Note
These grace periods are not taken into consideration when calculating the dunning level of the item. It is made exclusively by means of the days in arrears of the item.

[Former Member · Accepted solution]

Example

imagine this as a person A is lending money to 3 different people X, Y and Z,

to person X , A has given 500(60 days ago) ,1200 (40 days ago), 900 (10 days a go)

to person Y , A has given 700(80 days ago) ,1100 (50 days ago), 600 (30 days a go)

to person Z , A has given 600(25 days ago) ,4000 (15 days ago), 900 (10 days a go)

here if we have Days in Arrears 30 days

grace period 15 days,

System which check for the accounts which has got more then 30 days so Z will get excluded but X and Y has got items which are more then 30 days old.

Now for X and Y each have three items so for dunning system will include those items which are more then 15 days old so

to person X , A has given 500(60 days ago) ,1200 (40 days ago) will not include 900 (10 days a go)

to person Y , A has given 700(80 days ago) ,1100 (50 days ago), 600 (30 days a go)

correct me if I am missing something.