Use

You use this function to calculate and post interest on arrears for open items or items cleared late for several loans at once.

You use this function only for loans that are based on the following product categories:

Consumer Loans (340)

General Loans (330)

Mortgage Loans (300)

Use the Interest on Arrears for Overdue Items function for loans based on other product categories.

Integration

This function is based on the business operation category Interest on Arrears in the Workplace for Business Operations . You can generate calculation details per calculation for each loan, and display them in the Workplace for Business Operations .

Prerequisites

The prerequisites for this function are identical to the prerequisites for the Interest on Arrears function in the Workplace for Business Operations . For more information, see the Prerequisites section in Interest on Arrears .

Features

You can use the following functions:

Calculation

The system calculates the interest on arrears for the period from the date of the last posted or activated interest on arrears flow to the specified key date for the current interest on arrears calculation. The system also recalculates the interest on arrears from the start of the loan term.

If you enter a Calculate From (Exclusive) date, the system does not recalculate the interest for the period before the specified Calculate From (Exclusive) date . The interest is only calculated for the period Calculate From (Exclusive) until the Key Date . If an interest on arrears calculation is present for this period and has already been posted or activated, the calculation is recalculated.

Program Runs

Proposal List

Select the Proposal List checkbox to display a list of proposals.

If you select the Execute in Test Run checkbox in the main report selection screen, you change the list of proposals

If you deselect the Execute in Test Run checkbox, you are provided with the following options in the proposal list:

You can post the interest on arrears.

You can set the end date for non-interest on arrears using the key date derived from the Calculation of Interest on Arrears report.

In the Action field, select the processing you require and choose Post . You can also make mass changes so that the same action is executed for all loans.

For each loan, you can only change the Action field in the first row in the list. The system displays a record, along with any messages, for each loan belonging to a particular flow type grouping for which the interest on arrears is calculated. Only one message is displayed for each flow type grouping.

If you execute an interest on arrears-related action for a set of loan contracts, the system deletes messages associated with each loan contract and displays the new messages generated by the posting.

The processing status of the loan is displayed in the status column.

Empty status field: The loan is not processed.

Trivial Amount : Only a trivial amount has been calculated for the loan. Interest on arrears cannot be posted; however, you can set an end of non-IOA date.

Posted : The interest on arrears is posted for the loan.

End of Non-IOA Period : An end date for the non-interest on arrears period is set for the loan.

After you exit the report, the system displays all the posting logs for the list of proposals.

Mass Run

If you do not select the Proposals List checkbox on the main report selection screen, the system executes mass processing.

The following options are available as control parameters for the report:

Save Calculation Details

If you select the Save Calculation Details checkbox, the system saves the calculation details generated for each loan to the database. You can display the details in the Interest on Arrears function in the Workplace for Business Operations.

Save Trivial Amounts

If you select the Save Trivial Amounts checkbox, and an interest on arrears calculation results in an amount that is less than the trivial amount limit, the system saves this as a business operation.

Size of Processing Block

To prevent the program from terminating during a run for a large number of loans, you can set the Size of Processing Block field with a default processing interval. The loans are then always processed in this block size.

The following options are available as calculation parameters for the report

Key Date

If you are using mass processing, you can enter a date that is in the future. However, only posted flows are included in the calculation.

For example, if the mass run is scheduled to take place on the 15 th day of the month, and this date falls on a Sunday, you can schedule the mass processing for interest on arrears calculation for the previous Friday evening.

The following options are available as posting parameters for the report:

Payment Meth. for Inc. Posting

If the amount is larger than the trivial amount limit, the system posts the calculated interest on arrears immediately. The system does not check the validity of the payment methods for the interest on arrears to be posted.

If the calculated interest on arrears cannot be posted due to an incorrect payment method, the system displays a corresponding error in the log.

Activities

On the SAP Easy Access screen, choose Accounting → Bank Applications → Loans Management → Accounting → Receivables /Payables Management → Interest on Arrears → Calculation of Interest on Arrears .