To remind customers by telephone that payments are overdue, you can transfer open items to internal and external customer service representatives. If open items are overdue for a prolonged period, the system can categorize these as non-accruals.

To invoice defaulting customers for missed payments, you can define and calculate different late fees.

To group the costs of an early termination, you can create a quotation for early termination for the customer.

To process the payments arising from contractual business relationships between lessors and third parties, such as dealers, you can use the Leasing Payment Engine. The Leasing Payment Engine calculates, collects, and posts the payments in Contract Accounts Receivable and Payable.

The business function is part of the SAP Leasing solution.

For more information, see SAP Help Portal at  help.sap.com SAP for Industries SAP for Banking SAP Leasing .

The business function belongs to the business function set FICAX Contract Accounts Receivable and Payable .

The business function FICAX_LEASING is part of the LeaseOperations business scenario.

To be able to use the functions of the business function FICAX_LEASING, you have to activate the business function in Switch Framework Customizing (transaction SFW5).

You have made the specific settings for the leasing functions in Customizing for Contract Accounts Receivable and Payable.

For more information, see Customizing for SAP ERP under  Financial Accounting (New) Contract Accounts Receivable and Payable :

Management of late payments

If a customer does not make a payment within a period defined by you, you can specify that a customer service representative reminds this customer by telephone that payment is overdue. To this end, the system transfers the relevant customer information to the worklist of the relevant internal or external customer service representative. This representative then contacts the customer via the Interaction Center.

In the case of overdue payments, you can also specify that the system sets the status of the corresponding items to Non-Accrual . If the defaulting customer restarts payment, the system resets the status.

Late fees

You can configure a late fees matrix and use this to calculate late fees for different contract items. If the system has determined from the key date check that a payment is late, it checks which parameters from the late fees matrix are to be used to calculate the late fees. You can use the Billing component to bill the late fees to the lessee.

Early termination

If a customer wants to terminate a lease before the end of the lease, you can create a quotation for early termination for the customer. Contract Accounts Receivable and Payable supports the determination of the termination total, such as open or overdue payments, that the lessor calculates for the lessee as the financial damages that arise as a result of contract termination.

The system uses the termination total from Contract Accounts Receivable and Payable to create the termination quotation in SAPCustomer Relationship Management (SAP CRM).

Leasing Payment Engine

You can use the Leasing Payment Engine to process the settlement of payments between lessors and third parties, such as dealers and insurers. These payments stem from secondary business agreed between lessors and third parties.

The Leasing Payment Engine takes the amounts to be settled from the Lease Accounting Engine and posts the data in Contract Accounts Receivable and Payable.