Interest Penalty Offset
Use
In account settlement, the interest penalties incurred for each period and each account due to withdrawals are offset against the revenues of the account.
Withdrawals that incur an interest penalty include:
Withdrawals from a savings account without adherence to notice period, and withdrawals above the allowance amount.
Closure of account
Withdrawal from time deposit account during fixing phase
The interest penalty is calculated for the part of the amount withdrawn that exceeds the balance not subject to early withdrawal penalty. It can be defined according to the credit interest rate that is valid on the day of the withdrawal, or as an independent interest rate, It is calculated for 90 days, 900 days, or for the duration of the notice period.
Prerequisites
You activated the
notice on amount
feature for an account product in Customizing for
Account Management (FS-AM)
under
Product Management
Product Definition
Account Products
Create Account Product, and you defined an interest penalty calculation method for the notice on amount feature.
Under the
Settlement
feature in the account product, you made entries for
Post Interest Penalty
and
Post Interest Penalty for Account Closure.
The account has an
interest penalty
condition (condition category 105040 (interest penalty)) that is relevant for the settlement period. You defined the interest rate for the interest penalty on the
SAP Easy Access
screen under
Account Management (FS-AM)
Current Settings
Financial Conditions
Condition Group
Edit Condition Group
(F9COGR2).
In Customizing for
Account Management (FS-AM)
you have chosen
Product Management
Settlement
and executed the Customizing activityAssign Condition Types for Accrual/Clearing
.
In Customizing for
Account Management (FS-AM)
under
Settlement
Business Add-Ins (BAdIs)
Enhancements in the
Calculation Layer
you have implemented the Business Add-In
BAdI:
After Rounding of Totaled Results
fort he calculation of the interest penalty.
Features
Calculation of Interest Penalty Amount
If a withdrawal from an account uses up the allowance amount for the account, an info itemis created with the payment item..
The interest penalty is calculated in the function module BCA_API_SL_PEN_INT_CALC (Calculate Interest Penalty Amount). The result displays the created info items.
The system processes all info items that are flagged as interest penalty amounts for the account, and calculates the interest penalty using the interest penalty calculation method that is valid for the account.
You can use the settings that you make in Customizing for
Account Management (FS-AM) under Product Management
Financial Conditions
Include Allowance Amount in Interest Penalty Calculation to define whether an unused allowance amount is to be included when calculating the interest penalty rate.
If the
Include Allowance Amount
indicator is set, then the unused allowance amount is subtracted from the balance used in the interest penalty calculation.
The system displays carryforwards from interest penalties in the
balances and key figures
under
Settled Period
Carryforward from Interest Penalty
.
Offsetting Interest Penalty With Credit Interest
At the time of settlement, the system determines all info items that result from withdrawals that are subject to an interest penalty.
The interest penalty is offset against the account revenue using the BAdI AFTER_ROUNDING_RESULTS of the enhancement spot BCA_SETTL_CALC.
Posting Calculated Interest Penalty Amount
The interest penalty amount is posted in accordance with the settings made in the fields
Post Interest Penalty
or
Post Interest Penalty for Account Closure
. This is mainly relevant if the account revenue is less than the total interest penalty.
Only the different amount (net posting) is posted in the account settlement. The system deletes the info items after settlement.
Example
EUR 500.00 interest penalty is calculated for a savings account for a settlement period. The interest amount for the same period of time is 400.00 EUR according to the method
Post Interest Penalty
that has been set up, and the following scenarios arise for the periodic settlement:
No restriction, interest penalty is posted in full
Interest penalty is cleared with the credits. The remaining interest penalty of EUR 100.00 is debited to the account in full.
Restriction to credits from current period without carryforward to next period
Interest penalty is cleared with the credits. The remaining interest penalty of EUR 100.00 is not taken into account.
Restriction to credits of the current period with carryforward to the next period
Interest penalty is cleared with the credits. The remaining interest penalty of EUR 100.00 is carried forward to the next settlement period, and then, with the interest penalty that is incurred in the next period, cleared with the credits of the following period.
EUR 500.00 interest penalty is calculated for a savings account during an account closure. The interest credit is 400.00 EUR according to the method
Clear Interest Penalty for Account Closure
that has been set up, and the following scenarios arise for the account closure:
No restriction, interest penalty is posted in full
Interest penalty is cleared with the credits. The remaining interest penalty of EUR 100.00 is debited to the account in full.
Restriction to credits from current period
Interest penalty is cleared with the credits. The remaining interest penalty of EUR 100.00 is not taken into account.
Restriction to credits from all previous periods
The system uses all credits that were calculated during the entire contract term to clear the interest penalty. If these are not sufficient to clear the full interest penalty amount, the remaining interest penalty is ignored.