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Function documentationManagement of Late Payments Locate this document in the navigation structure

 

The management of late payments is part of the Leasing solution and helps you to process open items for your leasing customers in Contract Accounts Receivable and Payable. You define the measures taken by the system to deal with late payments and specify after how many days these measures are triggered.

This is demonstrated by the example in the following figure.

This graphic is explained in the accompanying text.

Management of Late Payments

For example, you can specify that a customer is contacted by telephone after 30 days, that late fees are charged after 60 days, and that the system sets the status to Non-Accrual after 90 days.

Prerequisites

You have made the following settings:

  • You have specified levels for processing late payments by using the number of overdue days. Each level is a delinquency status that is linked to certain measures.

    For more information, see the SAP Implementation Guide (IMG) under   Financial Accounting (New)   Contract Accounts Receivable and Payable   Enhancements for Leasing   Arrears  .

    Note Note

    SAP provides the Non-Accrual delinquency process. You can use the Business Add-In /LSIERP/DELINQ_PROC_DEF to include your own delinquency processes.

    End of the note.

  • You have defined dunning activities. SAP provides function modules for the following dunning activities:

    • Non-accruals

    • Add to the worklist of a customer service representative

    • Remove from the worklist of a customer service representative

    For more information, see the IMG under   Financial Accounting (New)   Contract Accounts Receivable and Payable   Business Transactions   Dunning Notices   Configure Dunning Activities  .

  • You have defined dunning procedures with dunning levels and assigned the required dunning activities to the dunning levels.

    For more information, see the IMG under   Financial Accounting (New)   Contract Accounts Receivable and Payable   Business Transactions   Dunning Notices   Configure Dunning Procedure  .

    Note Note

    For more information, see Configuration of the Dunning Process Flows.

    End of the note.

  • You have assigned the corresponding function modules to the following events:

    Event

    Function Module

    0020

    /LSIERP/STOP_NON_ACCRUAL_0020

    2807

    /LSIERP/SEND_DELINQ_STAT_2807

    1799

    /LSIERP/TRIGGER_NON_ACC_1799

    For more information, see the IMG under   Financial Accounting (New)   Contract Accounts Receivable and Payable   Program Enhancements   Define Customer-Specific Function Modules  .

  • You have created and activated financing contracts for Leasing in SAP Customer Relationship Management (SAP CRM).

    Note Note

    You can use the functions for the Management of Late Payments in FI-CA only if you have assigned a business agreement to each contract item in a financing contract in SAP CRM.

    End of the note.

Features

If you execute dunning runs in day-to-day business, this can result in the following dunning activities:

  • Customer contact by telephone

    After a certain period of non-payment, you can assign open items to the worklist of a customer service representative. This representative contacts the customer by telephone, reminds them that payment is outstanding, and discusses the next steps directly with the customer.

    For more information, see Assignment of Worklists for Telephone Collections.

  • Late fees

    You can define different late fees and bill the customer. For more information, see Processing of Late Fees.

  • Categorization of open items as non-accruals

    You can classify as non-accruals those open items for which incoming payment is not guaranteed and for which you expect a complete or partial loss on receivables.

    For more information, see Categorization of Open Items as Non-Accruals.