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Technical Data

Technical Name of Business Function

EAFS_CML_IOA

Type of Business Function

Enterprise Business Function

Available As Of

SAP Enhancement Package 5 for SAP ERP 6.0

Technical Usage

Financial Services

Application Component

Loans Management (FS-CML)

Directly Dependent Business Function Requiring Activation in Addition

Not relevant

You can use this business function to carry out interest on arrears (IOA) calculation for the product categories Mortgage Loans (300) and General Loans (330).

Prerequisites

You have installed the following components as of the version mentioned:

Type of Component

Component

Is Needed Only for the Following Features

Software Component

EA-FINSERV 605

Technical component or business content, e.g. Portal Content

Not relevant

You have made the Customizing settings for this function in Customizing for FS-CML under:

  SAP Banking   Loans Management   Transaction Management   Flow Types  :

  • Define Flow Types

  • Assign Offsetting Flow

  SAP Banking   Loans Management   Transaction Management   Update Types  :

  • Define Account Determination

  SAP Banking   Loans Management   Transaction Management   Condition Types  :

  • Define Condition Types

  • Define Condition Groups

  SAP Banking   Loans Management   Transaction Management   ProductTypes  :

  • Define Product Types

  SAP Banking   Loans Management   Functions   Business Operations   Interest on Arrears  :

  • Determine Old Interest on Arrears Flow Types Without Recalculation

  • Define Templates

  • Define General Control Data (modified)

  • Define Calculation Profiles

  • Define Trivial Amount Limits per Calculation Profile

  • Define Default Calculation Profiles (new)

  • Define Flow Type Groupings

  • Assign Flow Types to Flow Type Groupings

  • Assign Condition Types to Flow Type Groupings

  • Assign Flow Type Groupings to Calculation Profiles

  • Activate Interest on Arrears Calculation per Business Operation Category

  • Activate Int. on Arrears for Each Bus. Op. Categ. and Prod.Type (new)

  • Determine Standard Conditions (new)

Features

Link to FI customer account: You can now use the interest on arrears calculation for Loans Given that are based on FI customer accounts.

Calculation logic: This interest on arrears calculation is based on a calculation logic that is not dependent on the Calculation of Interest on Arrears function in Financial Accounting (FI). The details of the calculation logic are identical to the logic employed by the product category Consumer Loan.

IOA activation at product type level: You are now provided with an IOA checkbox for product types belonging to the product categories General Loan and Mortgage Loan. If you select this checkbox, the IOA function is activated.

Proposal list: In addition to using the existing automatic mass run for calculating and posting interest on arrears, you can now manually edit a proposal list in the mass run. In the proposal list, you can select the checkbox to post interest on arrears or set a non-IOA date using the mass run key date.

Integration with other business operations: You can have the system calculate the interest on arrears for a loan in the product categories listed above for the following functions in the Workplace for Business Operations : Deferral, Payoff, and Capitalization of Overdue Items.

Manual input option: You can now manually enter the start date for the IOA calculation in the Workplace for Business Operations and in the mass run report Calculation of Interest on Arrears.

Inclusion of planned items: You can now manually select an end date for a future IOA calculation in the Workplace for Business Operations. If you make such a selection, the base amount used to calculate the IOA can include planned items in addition to open items. However, in this context, the IOA calculation will be a simulation and the user will not be able to activate or post the IOA.

You can also include planned items from the mass run report Calculation of Interest on Arrears. This means that, the report can run on Friday night with Sunday entered as the calculation end date.

Loan master data: You can now base the IOA calculation on the individual interest on arrears conditions provided in the loan master data instead of on settings in Customizing.

You can control IOA calculations for the product categories General Loan and Mortgage Loan by using the following four new fields in the loan master data: IOA Lock , IOA Lock To, Calculation Profile, and Non-IOA End Date.

Dunning report: You cannot calculate interest on arrears during a dunning report run for the product categories General Loan and Mortgage Loan. You are required to use either the mass run or the Workplace for Business Operations to perform interest on arrears calculations. However, you can continue to print the posted interest on arrears generated by the mass run or the Workplace for Business Operations in the dunning correspondence.

Interest lock checkbox for documents: You can set interest on arrears locks on posted documents for the product categories General Loan and Mortgage Loan. No interest on arrears calculation is performed for such locked documents. In the change contract mode, you can select the checkbox for the IOA lock from Display Account Statement for Contract.

More Information

For more information, see SAP Library for SAP Banking on SAP Help Portal at   http://help.sap.com   SAP ERP   SAP ERP Central Component   Financials   SAP Banking   Loans Management   Position Management   Business Operations   Interest on Arrears   and   Loans Management   Accounting   Calculating Interest on Arrears   Interest on Arrears Calculation  .