Calculating Public-Legal Dunning Interest 
Use
This function allows you to create dunning interest especially for public-legal dunning procedures.
With dunning procedures that were not characterized as public-legal in the Funds Management Government Customizing, the program calculates the dunning interest in the same way as in the Financial Accounting component. For more information, see section Accounts Receivable/Payable Accounting of the SAP Library under Dunning .
Prerequisites
In the Financial Accounting IMG, section Define interest records, you must have defined an interest indicator which the program can access when calculating interest.
Features
Determination of Dunning Amount
The dunning amount, on which the program calculated the dunning interest (per expiration month started), is determined as followed: The program deducts all those credit memos or partial payments from the open items of a due date (e.g. open invoice), which refer to the open item. If partial payments or credit memos refer to an invoice, then they are deducted from the invoice for dunning interest calculation. All documents must have the same due date for this purpose. If another invoice refers to the invoice just mentioned, then the amount is totaled, but only if the due date matches.
Note
If you want to apply different logic for grouping together documents for dunning interest calculation, then you can program this using Business Transaction Events, period "00103005".
This dunning amount is first rounded for public-legal dunning procedures with the Rounding unit for public-legal dunning interest , which you have defined in Customizing.
Example
An invoice of $620 is due on the 03.01. A partial payment of $140 is posted on the 08.02. The first expiration month begins on the day after the due that is on the 04.01. The basic amount for the period 04.01 to 03.02 (1 st expiration month) is rounded up to $600. The basic amount for the time 04.02.to 0.3.03 is likewise $600 since the partial payment of $140 on the 08.02 was paid too late by the customer and so the 2 nd expiration had already started. From the 04.03 the partial payment for the calculation of the basic amount is considered. The basic amount from the 04.03 is therefore rounded to $400.
The following graphic illustrates the example above:
Determining the months (or days) on which interest is calculated
Determining the months (or days) on which interest is to be charged applies both for public-legal and to private-legal dunning procedures. It depends on whether you have made the setting in the Customizing that dunning interest is to be posted. If you have made settings in Customizing so that dunning interest is to be posted, then the interest is always calculated relative to the last dunning run. To guarantee an interest calculation without gaps, the Post dunning interest indicator may not be changed in Customizing. If it was specified in Customizing that dunning interest is not posted, then the dunning interest is calculated relative to the original due date of the open item.
Calculating dunning interest
Note
If you want to prevent multiple interest calculation, you have to set an interest block for the additional revenue type used in the Funds Management Government Customizing. You make this setting for a company code group. See the Implementation Guide (IMG) Funds Management Government ; section Define Company Code Group for more information.
For public-legal dunning procedures interest is charged on a monthly basis, that is per month begun a particular percentage record of the amount overdue is invoiced. Dunning interest for private-legal dunning procedures on the other hand, is calculated on a daily basis.
For public-legal dunning procedures the program determines the amount of the dunning interest as follows: For every month started the basic amount is determined and multiplied by the interest indicator stored in Customizing. The program then forms the total via all calculated "monthly charges".
If dunning interest is also calculated in addition to the dunning charge, the maximum amount defined in Customizing takes effect. In this case the program compares the dunning charge calculated with the maximum amount. If the dunning charge calculated is higher than the maximum amount, the debtor only has to pay the maximum amount as a dunning charge.