Interest on Overdue Items 

The duplicata contains information on the amount the customer is charged per overdue day. For this, a reference interest rate per year and an optional surcharge can be maintained in a time-dependent manner. For a specific item, the valid interest rate at the item due date is applied in interest calculation. To calculate the daily interest amount to be paid by the overdue customer per item, the annual interest rate is divided by 360.

A Customizing example for the interest on arrears calculation is part of the Brazilian localization. For changes, the following fields must be customized:

Customize by choosing Financial Accounting ® Accounts Receivable and Accounts Payable ® Business Transactions ® Interest Calculation ® Interest Calculation Global Settings ® Define Interest Calculation Types.

Customize by choosing Financial Accounting ® Accounts Receivable and Accounts Payable ® Business Transactions ® Interest Calculation ® Define Reference Interest Rates.

Customize by choosing Financial Accounting ® Accounts Receivable and Accounts Payable ® Business Transactions ® Interest Calculation ® Define Time-Based Terms.

Customize by choosing Financial Accounting ® Accounts Receivable and Accounts Payable ® Business Transactions ® Interest Calculation ® Enter Interest Values.

Alternatively, you can specify tolerance days for arrears. Customize this by choosing Financial Accounting ® Accounts Receivable and Accounts Payable ® Business Transactions ® Interest Calculation ® Interest Calculation Global Settings ® Prepare Interest on Arrears Calculation.

If a customer is charged for overdue items, maintain the interest calculation indicator in the customer master record.