Entering Charges as a Business Operation (SAP Library

Entering Charges as a Business Operation

Use

You use this function to enter complex business operations (such as dunning and processing charges) that also involve derived flows (for example, rate gains or accrual/deferral flows) or incidental costs (for example, taxes). A business operation can comprise one or several flow records.

Prerequisite

You define the flow types to be used here in Customizing for Loans by choosing Define Condition Groups ® Assign Flow Types to Cond. Groups per Application.

Procedure

Choose Portfolio ® Business Operations for Contract ® Enter Charges as Business Operation. The Enter Charges as Business Operation: Initial Screen appears. Enter the company code and the loan number and choose Change or Display.

The Enter Charges as Business Operation: Edit screen appears, which contains header data and two tables.

The general loan master data appears at the top of the screen (header data).

You also see the values for the available capital and the value-dated capital as at the specified key date. No changes can be made to this data.

You create the business operations in the first table by choosing Create bus. operation. Enter a Name for the business operation. You can enter your own text.

Once you have filled the second table (described in step c.), you save, activate or post the business operation. The system automatically displays the status and the entry or change details. No changes can be made here.

The system only displays the business operations with the statuses entered or activated. However, you can include the business operations that have been posted, deleted or reversed by choosing Display all bus. operations.

Select a business operation. To display the individual flows for a business operation in the second table, choose Choose business operation.

If the business operation has the status entered or activated, you have the option of deleting it.

The Flows for business operation table contains the input fields for creating the flow records or planned records:

Flow type (required entry)

Certain flow types have an impact on the capital. For example, an unscheduled repayment reduces the capital, while a processing charge does not.

Settlement amount (required entry)

Enter the settlement amount. The system displays the position currency. If the loan currency is identical to the company code currency, the two amounts displayed are the same. If the company code currency differs from the currency of the loan, the system expresses the settlement amount in the currency of the company code (local currency).

The default entry for the Payment date is the current date. You can overwrite it if necessary. If you do not make any entries for the Due date or Calculation date, the system automatically fills these fields with the due date.

However, if you change the payment date for a flow in entered status, the system does not copy the new date to the due date and calculation date. You must make any changes manually.

In the Inc. pmnt field you can specify whether the system should generate the incoming together with the posting. In the case of an employee loan, this method can be used to offset a repayment directly against the employee’s salary, since there is no real incoming payment.

In the Partner field, you can enter an alternative payer/payee for the flow.

In the BnkT field (partner bank type) you specify which set of bank details should be used for the partner.
You can only enter data in the Exchange rate field if the loan is a foreign currency loan.
You can also enter the Payment method to be used for making the payment. You must always enter a payment method if the payer/payee is not the main loan partner.

You can assign various data to the posting, such as a Payment block, Dunning block, Dunning area or a reference Allocation for the line item. This information is transferred to FI when the flow is posted.
The Pmnt activity indicator controls whether the flow is posted to a customer account or a G/L account.
You can also enter your own posting Text. This text is displayed in the posting document.

Detail Screen

You can also branch to a detail screen, which gives you an overview of all the fields for a flow. Select a flow record and choose Choose flow record. The Enter Charges as Business Operation: Edit screen appears. Once the business operation has been activated or posted, you can longer make changes. The system merely displays the data. By contrast, if the business operation has entered status, you can still make changes or enter additional data.

In this screen you can also assign or create a different partner, and specify or change the Partner bank type and Payment method.

You can use the Next flow function to page between the detail screens for the individual flows in a business operation.
To display the data on when data for a business operation was created or changed, choose User data… .

Other Functions

If you have entered a flow type that is relevant for accrual/deferral, a dialog box appears. Enter the relevant period for the flow.

You can also call up this calculation dialog box by choosing Calculation bases. This calculation aid allows you to determine the interest amount for a specific base amount and interest rate. You can either calculate the absolute interest on the base amount or restrict the calculation to a certain period. You can specify the Interest calculation method, the Calendar rule, the calculation dates (Calculation from, Calculation to) and the Month-end indicator.

At the bottom of the dialog box, the system displays the Value-dated capital, Commitment capital, Effective capital and Disbursement obligation as proposals for the base amount. To use one of these values, double-click on the corresponding amount field.

You can calculate a new flow on the basis of an existing flow (for example charges for the unscheduled repayment or taxes). Select the relevant flow and choose Percentage surcharge. The system generates a new flow record. You can change this default value. To make the necessary settings in Customizing for Loans, choose Define Tax Rates.

3. Once you have entered the data you can save, activate or post the business operation.

From the Enter Charges as Business Operation: Edit screen you can branch to the following functions:

By choosing Simulate cash flow you can include simulated records (flows that have been entered but not activated) in the cash flow calculation (displayed as 'S' records). All the business operations entered in the upper table are incorporated in the simulated cash flow.

You can call up additional data for the contract by choosing Display contract.

For more information, see Creating a Mortgage Loan Contract.

You can also branch to the Account statement to see the balance for the contract.

To display the open items, choose Display Open Items.

You can also select a document item and branch to the FI document for the posting. You can also access the FI document by double-clicking on a document item.

You use the Correspondence function to generate letters.