Use

If a business partner is in arrears with payments, instead of or in addition to levying arrears interest, you can also charge an arrears surcharge for the overdue items.

Features

The arrears surcharges are calculated in event 0104 in the clearing processes for the following transactions:

In dialog processing, the arrears surcharges determined for the items to be cleared are displayed per item and as a total similar to the cash discount. Items for which the system has calculated arrears surcharges have the icon with the text Surcharge for Late Payment in the column Surcharge . To display the amount of the surcharge, select the item and double-click on the gross amount. The amount appears in the column Cash Discount/Surcharge . The values calculated are proposed values that you can reduce or deactivate, but not increase. As for the calculation of cash discount deductions, in the case of a partial payment, the system carries out partial clearing and calculates the arrears surcharge proportionately.

You can levy arrears surcharges when you clear with credits due, as well as when you receive payments. When calculating surcharges, the system assumes a payment date to which the surcharge is to be calculated. This means that in a clearing transaction, you can only consider payments and credits to a specific payment date. Credit items in the contract account of a business partner where the due date is different to this payment date are therefore automatically locked for the clearing processing. You have to offset credits that cannot be considered in clearing in the account maintenance. In dialog processing, these credits have the icon with the text Cannot Be Cleared Here .

You can decide whether interest is calculated on items for which you have levied an arrears surcharge during clearing in event 2090. As standard, you cannot calculate interest on such items.

The arrears surcharge posted appears in the interest history of the cleared item.

Activities

Define the revenue accounts to be posted to for the arrears surcharges in the Implementation Guide for Contract Accounts Receivable and Payable , under  Basic Functions Postings and Documents Document Define Account Assignments for Automatic Postings Automatic G/L Account Determination Define Accounts for Surcharges on Late Payments .

To implement the calculation of arrears surcharges, in the Implementation Guide for Contract Accounts Receivable and Payable , under  Program Enhancements Define Customer-Specific Function Modules , define an appropriate function module for event 0104. SAP provides sample implementations in the function modules FKK_SAMPLE_0104_STANDARD and FKK_SAMPLE_0104_INTEREST.See the documentation for the sample function modules FKK_SAMPLE_0104 and FKK_SAMPLE_0104_INTEREST.

Example

Arrears interest versus arrears surcharge

A business partner has an overdue receivable in the amount of UNI 100. For the payment arrears you levy UNI 2. The business partner pays UNI 100.

You calculate arrears interest, carry out an interest run, and post an interest document in the amount of UNI 2. On receipt of the payment for UNI 100, depending on the item selection and the configuration of the clearing control, the system clears either the open receivable for UNI 100 or the interest document posted and a partial amount of UNI 98. In the first case, the interest receivable for UNI 2 remains open in the contract account of the business partner. If you have not calculated interest before receiving the payment, you can calculate interest on the item when you clear the receivable and calculate an interest item of UNI 2. In this case the interest item remains open.

Arrears surcharges add business value because, in contrast to interest on arrears, you can calculate and withhold arrears surcharges when you clear the overdue receivable. The system automatically posts the arrears surcharge as a general ledger item (revenue) in the clearing document. There is no separate charges document. If the arrears surcharge calculated in event 0104 has the same amount as the corresponding interest document, in our example, UNI 2, the system would split the payment for UNI 100 proportionately as follows:

For the receivable of UNI 100, the system posts a partial clearing for UNI 98.04 and revenue from surcharges of UNI 1.96. UNI 1.96 of the receivable remains open, and you can levy higher interest/charges for the next payment, since this partial amount of the receivable is cleared later. To clear all receivables completely (overdue receivable + arrears surcharge), the business partner would have to pay UNI 102.

If the business partner pays, for example, UNI 51, UNI 50 of the original receivable remains open.