Entering content frame

Function documentation Interest Penalty Offset Locate the document in its SAP Library structure

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The interest penalty is calculated for the part of the amount withdrawn that exceeds the balance not subject to early withdrawal penalty.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).

Scope of Functions

Calculation of Interest Penalty Amount

If a withdrawal from an account uses up the allowance amount for the account, an info item is 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.

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 revenue of the account using the Business Transaction Event (BTE) 0BCA4450.

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

500.00 EUR 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 100.00 EUR 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 100.00 EUR 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.

500.00 EUR 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 100.00 EUR 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.

 

Leaving content frame