Interest rates as part of Payment Terms

Dear Experts,
I have the following scenario :-
- Client has a Payment Term of 28 days for its Customer
- If the Csutomer pays within 14 days, they are not chanrged any inerest (hence client gives 14 day inerest free credit to its Customers)
- Once 14th day is passed client start charding Interest @2% upto 28th day.
- Once 28th day is passed then (Due Date crossed) client start charging Penalty @5%.
In other words, although the Due Date is 28th day, as per agreement with its Customers, our client can charge Interest after 14 days. If the customer pays within 14 day - they pay NO Interest. Once 28th day is passed, Penalty is charged on the due amount.
Can you please guide, if this can be made possible in standard SAP using Payment Terms.
To determine these rates, I could not find the configurations. Do I need to go by the Function Module DEBIT_INT_RATE_DETERMINE ?

Hello Venkat,
AS per my knowledge you can not calculate interest using Payment terms. In payment terms you can calculate discounts.
I think you need to use Function Module DEBIT_INT_RATE_DETERMINE

Similar Messages

Interest Report and Interest Rates

Hi
We are using SB1 2007A SP1 PL08 HFIX 2 with a Polish localisation.
There are a few menu options which are of special interest to me and presumably intended to work together:
Administration > Setup > Banking > Interest Rates
and
Banking > Incoming Payments > Interest Reports
Does anyone have any (english) documentation or experience of this function ?
The online help seems to be unaware these options exist. My guess is these menu options are restricted to the old 'C' cluster localisations.

Hi,
You are probably right. It could not be found under new 8.8 version help.
Thanks,
Gordon

Interest rates in payment term

Hi Gurus,
We have one requirement to create a payment term like this "Payment due within 30 days and 1% interest per month". How can we set interest rates in OBB8 transaction?
Regards,
P Gomatheeswaran

Hi,
In the Transaction code OBB8 you can define the INTEREST RATE and no of days for which till interest applies
goto the details of the Payment terms in the same transaction and in the screen you can find the tab with PAYMENT TERMS---installment payments.
In that tab you can enter the Percentage as 1% and no of days as 30.
So the interest will be 1% if the payment is due for 30 days.
Hope it is clear,
Please check and revert back if u need more details
thanks,
santosh

Variation of payment term with po term.lastest rate is not picked up,*

Dear SAP
Variation of payment term with po term.lastest rate is not picked up,
Irregular rate is uploading on system.document attached
*Reagards
MERUGU HAREESH *

there are payment terms at comapny code level AND purchasing org level, because you may get vendors for which you dont need purchasing views, such as customs or restaurants, where you never place a purchase order at. And other vendors like goods suppliers may never need company code views because you will never pay them.
So each view serves its own purpose.
It is not possible to just ignore maintenance at one level and get the payment term for an other organisation.
Especially as you can have several purchasing organisations within one company (if you purchasing wants to differentiate purchases of direct material from MRO purchasing) or you have one purchasing org for several company codes.
And not always is the payment term equal then.
If you are certain that the company code payment term is always equal to purchasing org payment term, then copy it over with mass maintenance and everything is fine.

FB70 - Payment Terms and discount rates

Dear Friends,
We have a requirement in transaction FB70, in which we
wanted to provide 3 different discounts for a given payment term, but the transaction by default provide only
2 discounts. Is there a way in which we can add a third
discount for a payment term.
Thanks & Regards,
Kanthimathi

We have a similar requirement to add additional discount rates to the payment rates. I found OSS Note 641960, which says, it has more options in EBP 3.5, which is CRM application I guess.
Can anyone reply to this message, and help us, if there is any other solution
we can implement to add additional discount rates in an R/3 system 4.6c or 4.7?
Thanks in advance,
Saleem

Final price of the Sales Order calculation on payment term

Hi,
Out Business requirement as follows.
1) one ZNAP pricing condition will be maintained by the monthly wise by business for pricing. this is a statistical condition only checking at sales order level only. this condition will check with Final price of the Sales order.
Now the requirement is
1) based on payment term of the Sales Order. plus if its a credit payment if the its CASH payment. these deduction should be added to ZNAP condition, and same will calculate with Final price, while creating Sales order.
For Example:
ZANP condition maintained 1000 USD.
while creating the SO:
If the payment term of the customer: PT30, ( it means payment with be in 30 days of the bill creation date)
system should do the below calculations
1) Scenario
Sales Order: Final price :                                       1500 USD( maintained by the Sales User while creating the SO)
ZNAP price                      :                                    1000 USD
according payment term 30 days                            20 USD ( as per table maintenance for calculation of the payment term.)
Calcuation:                                                          1000+20= 1020 (approximate need to add as interest rate)
Then final it should display final price 1500-1020= 480 USD.
2) Scenario:
If the payment term Cash:
ZNAP                                                            : 1000 - 20= 980 ( approximately and deduct, from the condition due to cash payment its like discount)
calucalte"                                                       1500-980= 520 difference
this purely internal pricing calculation with final price...
pl let me know how to get this in the pricing. and payment could be 30 days, 45 days 60 days etc.
Thanks.

Hi M Sham,
I believe your requirement can not be met with Standard pricing and you will have to create Routines for getting this result.
From scenario I believe you will be doing below points:
You should Create Z-Table with Payment Term and respective rates against those payment Term.
You should create a statistical condition type(Ex. ZNP1) and create Calculation Type routine with Logic to get KOMK-ZTERM field and derive value from Z-Table and update XKWERT field.
Calculate addition of ZNAP and ZNP1 (With +ve or -ve Signs)
And then again make deduction of derived value from Finale Value.
Do let me know if I have misunderstood your question.
Regards,
MJ.

Function to get the interest rate

hi;
iam trying to develop a function to return te rate of a loan knowing the original ammount, monthly payment, term.
basically what i need is the same as rate function in excel but i cant find the matematical function to calculate the rate
thanks
orestes

I found this formula on http://www.fonerbooks.com/solving.htm
the guy borrowed 100,000 for the mortgage and is making monthly payments of $830.33 for 15 years
looks like to solve for the interest they take the equation
P / M = [ i(1 + i)^n ] / [ (1 + i)^n - 1]
and make a guess at the interest rate and keep incrementing until the two sides match (or are close)
anyway I did in sql starting with and interated .01% interest rate and and incrementing by .01% for
10000 iterations and I ordered by the smallest difference between the two sides of the equation
and came up with 5.75% which I believe is correct
WITH variables AS (    SELECT 100000 M,
                              830.33 P,
                              180 n,
                              LEVEL * .0001 i
                         FROM DUAL
                   CONNECT BY LEVEL <= 10000)
SELECT i * 100 || '%' interest_rate,
         P / M,
         ( (i / 12) * POWER ( (1 + (i / 12)), n))
         / (POWER ( (1 + (i / 12)), n) - 1)
    FROM variables
ORDER BY ABS (
          (P / M)
           - ( ( (i / 12) * POWER ( (1 + (i / 12)), n))
             / (POWER ( (1 + (i / 12)), n) - 1)))
INTEREST_RATE     P/M     ((I/12)*POWER((1+(I/12)),N))/(POWER((1+(I/12)),N)-1)
5.75%     0.0083033     0.00830410087019666
5.74%     0.0083033     0.00829874710327995
5.76%     0.0083033     0.00830945655888689
5.73%     0.0083033     0.00829339525864719
5.77%     0.0083033     0.00831481416883952
5.72%     0.0083033     0.00828804533680813
5.78%     0.0083033     0.00832017369954276
5.71%     0.0083033     0.00828269733827184
5.79%     0.0083033     0.00832553515048413you could probably make this better so it doesn't have to do all the iterations if you use a recursive with or the model clause
and stop when the difference between the two sides of the equation is less then some number.
Edited by: pollywog on Feb 18, 2011 3:11 PM

Interest Rate Assignment

Hello. I really need help on this. I am very new with programming with Java. I have an assignment due and I don't even know where to begin. All I know how to do is program words and that is it. My assignment is as follows:
Here is an example of a transaction just took place in a store where hi-fi equipment
is sold. A customer purchased a stereo system that cost him $1,000 on the following
credit plan. No down payment, and interest rate of 18% per year (and hence 1.5%
per month), and a fixed monthly payment of 5% of the original loan (i.e. $50 in this
example). The monthly payment of $50 is used to pay the interest and whatever is
left is used to pay part of the remaining debt. Hence the first month he pays 1.5% of
$1000 in interest. That is $15.00 in interest. So, the remaining $35 is deducted from
his debt, which leaves him with a debt of $965.00. The next month he pays interest
of 1.5% of $965.00, which is $14.48. Hence, he can deduct $35.52 (which is $50 -
$14.48) from the amount he owes.
Write a Java application program that will ask you the loan amount and the interest
rate. Then the program will tell you - The monthly payment, How many months it
will take you to payoff the loan, The total amount of interest paid over the life of the
loan. Program should also indicate the final payment as in many cases the final
payment at the end of the loan would not be exactly the normal monthly payment
and also the total paid (initial loan plus the interest). You do not need to output the
monthly interest paid and the remaining debt. Your output should look like the
following?(it may differ, if you use GUIs).
Here is an example?..
You have input these?.
Please type loan amount : 1000.00
Please type interest rate : 18.0
You should get an output like this?.
Loan amount : 1000.00
Interest rate : 18%
Monthly payment : $50.00
Final payment : $47.12
Life of loan : 24 Months
Total Interest paid : $197.83
Total paid at the end of loan: 1197.83
You may use GUI input and output boxes (JOptionPane) we have discussed in the
class. If you wish you may program in the ?old fashioned? style using the command
line window
Any help would be appreciated.

I understand how such "big" would seem overwhelming to a n00b... but it's really not that bad you know. I'd expect a succinct solution to be about 100 lines of code, and almost certainly less than 200.
First you need to make some decisions on some "non-functional requirements"... Are you thinking console (text based) application? I would recommend that, because it's simpler than a GUI or a web-app.
So first things first... as previously stated you need to write a program which accepts user input. If you're using java 1.6 (recommended) then see the Console class, if you're using 1.5 or earlier then I'd recommend using the readLine method of the BufferedReader class.
I'm not a fan of the Scanner class (new in 1.6). In my (oh so humble opinion) it introduces more problems than it solves for newbies... because it's methods don't do what you'd expect them to do, and the API doco is (IMHO again) just about useless, because it doesn't address the most common use-case.
So, your challenge for this morning (my time) is: Write a simple "command line" Java program that will ask you the loan amount and the interest rate. Then the program will just print out those two amounts.
For the "first cust" don't worry about design or anything, just hack it to get something working... post that, and we'll critique it to improve it's design... then we'll start doing some math.
So... The general approach is: Think a bit; do a bit; test a bit; (re)design a bit; retest... then move onto the next bit. Moving quickly through these steps with small pieces of functionality gives the assurance that what you've done so far is basically right... as you gain experience you can bite off successively bigger chunks of functionality, but that basic development pattern remains the same.
Hope that cheers you up some... it's really not that hard...
Cheers. Keith.

How to get PO and vendor payment term number of days??

Hi Experts,
I want to have a) Purchase order payment term number of days as well as
b) vendor Payment term number of days.
For a) For Purchase order payment term number of days I am using table EKKO and taking ZBD1T field which is giving payment
           term number of days.
          Is it correct??
      b) vendor Payment term number of days I am using table LFB1 field Zterm to take payment term key not number of days.
           Based on this key i will go to table T052 and find corresponding number of days as told MM consultants .
           But this is not BW work. We need one single table from which we can take the field or enhance the current extractor
          with that field.
So is there any other option for (b)
and Whether steps for (a) is correct???
Please confirm this.
Thanks in Advance,
Uday Shankar.

For a) For Purchase order payment term number of days I am using table EKKO and taking ZBD1T field which is giving payment
term number of days.
Is it correct??
Payment terms for purchasing doesn't come delivered as part of the R3/ECC tables and is usually is added as a custom field to EKKO and populated via a User Exit. That looks to be the instance in your case because the field that you show as being the payment terms begins with a Z (custom fields begin with Y or Z). That appears, without being able to actually validate in your R3/ECC environment, to be the correct field to use. You would have to validate, however, with the end customer or your MM function consultant to be 100% certain. If this is the correct one to use, you're going to have to enhance the 2LIS_02_HDR extractor by enhancing the extraction structure and creating the User Exit to read it from EKKO and populate into the DataSource.
b) vendor Payment term number of days I am using table LFB1 field Zterm to take payment term key not number of days.
Based on this key i will go to table T052 and find corresponding number of days as told MM consultants .
But this is not BW work. We need one single table from which we can take the field or enhance the current extractor
with that field.
You can enhance the 2LIS_02_HDR extractor with the Vendor Payment Terms by joining the following in your User Exit:
EKKO-LIFNR = LFB1-LIFNR
EKKO-BUKRS = LFB1-BUKRS
LFB1-ZTERM = T052-ZTERM
This could either be done in a SELECT statement in the User Exit to do this equi join, or you could create a view on your R3/ECC environment and SELECT from that view.

Payment terms configuration issue

Hi All,
I have a requirement of configuring the following AR payment terms in the system
1) 50% payment due in advance 50% due 45 days from Invoice Date
2) Payment in advance
In OME2 how to configure the above terms for no. 1 , should i use the installlment option in while config...
Please provide me detail steps for config and also let me know how to take care Advance payment part.. We dont have customer down payment option in the project scope..
Regards,
Sandip

Sandip,
I understand you have to configure two payment terms.
1. 50% advance and 50% at 45 days from invoice date - this can be handled through instalment option and the percentage can also be fed there. but 50% advance can be handled only through downpayment option. A workaround is to set 'pay immediately '0 days' at the payment term instalment level and then knock it off with the downpayment document, later.
2. Advance payment - can be handled only through Down payment option in SAP.
Thanks
Rajalakshmi S

Mass change of Vendor Line Items Payment Terms

Hi all
We are trying to make a mass change of payment terms for vendor line items. We have implemented the change required as per SAP note 640908. However when we try to do this not all payment terms are changed.
The log gives us the following error - 'Field BSEG-ZTERM. does not exist in the screen SAPMF05L 1302'.
Please how can we solve this error.
Many thanks
PRG

Hi,
According to note 640908:
" Notes on error handling:
    If the mass change does not occur as required even though you
    changed and activated all program parts, note that the error log
    for the mass change (Environment -> Mass change -> Error log of
    line item list) may contain useful information for error
    handling."
" Note: SAP cannot guarantee that the modified mass change will work
correctly even if you carry out all of the steps as described in the
manual tasks."
It is not planned to enter the payment terms by using of
the field payment term ZTERM but by using of the fields ZBD1T/ZBD1P and
ZBD2T/ZBD2P and ZBD3T.
With Best Regards,
Gladys Xing

TRM: doubts in interest rate instrument and Business partner

Dear all,
While implementing Treasury Risk Management, in order to fulfill my clientsu2019 needs I have three questions regarding, 1. Interest rate instruments, 2.Leasings and 3.Business partners.
1.When creating a contract of an interest rate instrument , associated to a floating interest rate (e.g. EURIBOR 3M), how can I calculate the tax stamp which represents 4% of my interest rate amount, and occurs every time I have to pay interests?
I could define it in the u201Cother flowsu201D label but since the contract is associated to a variable, I never know how much my 4% of tax stamp calculated over the interest amount will represent.
2.When creating leasing contracts, how can I calculate the VAT associated to the periodic payments?
3.Is there any way to make postings to a business partner directly as a Vendor or a costumer?
Thanks in advance,
Regards,
Daniel

Hi,
Please consider following:
1. Generally TDS flows are generated automatically by system based on a revenue/expense flow. By configuring Derived FLows in system you can achieve this. Then alongwith every interest payment flow a TDS flow also will be generated based on the rate defined in system with seperate flow type, you can define account posting in spro.
The path for config- TRM-Trans Mgr- Money Market-Transaction Mgt- Flow Types- Derived FLows
2. Again since VAT is a derived flow for an actual cash flow, so you can achive this through derived flows config.
3. You can make posting to Business Partner account by performing following:
a. In master data, assign role of Customer to the Business Partner
b. Make payment settings in transaction to Customer and select payee/counterparty. While posting with TBB1, entries will be against Customer A/c and further clearing will be reqd at customer level against respective payment bank.
c. To achieve this output, you may require to define account determination accordingly for customers.
I suggest to post seperate thread for each issue rather than posting with single thread for better response.
Regards
Prasad AV

Variable Interest Rate Instrument scenario

Dear All,
Is it possible to create an Interest Rate Instrument with variable interest rate which is calculated and adjusted monthly but interest amount is paid quarterly.
As per my understanding creating Interest Rate Instrument with Variable Interest Rate and which is adjusted monthly is not a problem. But if we do that the system calculates interest monthly and tries to post it monthly and also creates payment Request for each monthly cash flow.
This is the issue we want the system to calculate the interest monthly and also want that monthly accruals are calculated correctly but we want the interest to be paid quarterly and not monthly.
Request your thoughts on this kind of scenario.
Thank You
Regards
Sachin

Hi,
In your IRI instrument, maintain the interest condition to have a quarterly payout. In the structure tab, click on the conditions and then click on interest rate adjustment condition. In that you can specify the interest rate condition item to adjust to monthly update. Thus you can perform interest rate adjustments on a monthly basis and have the interest payout on a quarterly basis.
Regards,
Ravi

PO release in case of changes in Variance or Payment terms

Dear All,
In case of any changes in the PO other than the qty and rate, if we want new release to be effected for other fields tehn what is the way out.
Eg. Changes have been made in the payment terms, or delivery variance (over and under) then what is the way out.

Hi,
first of all, maintain version management.
You can configure ur release strategy if other fields just like Tax code and delivery Date.
For this u have to add that field in Structure CEKKO. for E.g. to add Tax code field in CEKKO, u have to append the MWSKZ to this structre first.
and create a charateristic for that criteria and add this there and configure to ur release class.
Try this one may help ur Query
Regards,
pardeep Malik

Calendar date & net due date (FI) PAYMENT TERMS - OBB8 Vendor Invoice

I read many posts on SDN forum about the topic.
Anyway, I didn't find a simple solution for that.
My aim is is to calculate a net due date based on working days.
So, If I've got a 30 days document days payment term ("Deafult for baseline date" = Document date ; Additional Months = '2'), a Vendor Invoice (document date = 12.05.2011), by standard net due date will be 12.06.2011.
FROM 12.05.2011 to 12.06.2011 =
32 CALENDAR DAYS
22 WORKDAYS (32 minus 10 holyday - 2 weekends)
WORKDAYS PAYMENT TERMS Within 30 workdays Due net
Vendor Invoice document date = 12.05.2011
plus 30 workdays = DUE DATE 22.06.2011 (and not 12.06.2011)
Can I obtain that with a standard functionality?
Edited by: Roberto Buono on Jul 1, 2011 2:29 PM

Hi,
Sadly this is not available as standard. As per your need the Net due date should be worked out by using a factory calendar; but what this does is it delinks the direct correlation between the number of days in the payment terms with the difference between the due date and baseline date. I hope you are aware that Net Due date is not stored but is a variable calculated during run time in reports.
There are four things you can try:
1. The simplest to do is: As the number of weekends are fixed; and if the intention is to give a 30 working day term, then add on the number of weekends and make the payment term effectively for say 40 days. There will be marginal variations over what you want. Best part here is that config remains standard.
2. All the receivable reports will use a function module (usually the same one) to calculate the net due date; enhance the FM and make it consider a factory calendar for calculating due date.
3. Enhance the accounting interface, and in runtime; modify the days that are coming from the payment term; based on a factory calendar, and update the accounting document. This delinks the days mentioned in the payment term and the accounting document and may not be palatable.
4. Enhance the accounting interface, and in runtime; calculate the due date and update the baseline date with it and make the payment term as "Immediate" yielding the desired due date. Not very elegant. Alternatively add to the baseline date days equivalent to holidays and weekends and keep the days from payment terms constant and update the accounting document. Better...
All four options have somes pros and cons. I do not see any other means of acheiving what you want. Maybe you could restrict users to a custom receivables/due date/ageing report which delivers what you want and lock the standard reports.
Cheers..

Interest rates as part of Payment Terms

Similar Messages

Maybe you are looking for