Table of Contents SAP Withholding Taxes Withholding Taxes Configuration Basic Settings Check Withholding Tax Countries IMG – Financial Accounting- Financial Accounting Global Settings – Withholding Tax – Extended Withholding Tax – Basic Settings – Check Withholding Tax countries The withholding tax country is needed for printing the withholding tax form and also for maintaining the […]

Table of Contents Evaluation in Accounts Receivable The are many predefined evaluations in SAP.  Customer List Details Transaction code F.20 (left-hand screenshot) you can list customers details, you can chose what information is displayed and you can also limit the customers or the company code, the report can be seen in the right-hand screenshot Next

SAP Asset Accounting Overview

The Asset Accounting component is used for managing and supervising fixed assets with the SAP System. In Financial Accounting, it serves as a subsidiary ledger to the General Ledger, providing detailed information on transactions involving fixed assets. Asset Accounting will be covered in this tutorial in below steps

Description	Topics covered
Organization Structure	Check Country Specific Settings
	Copy Reference Chart of Depreciation
	Create 0% tax codes for Sales and Purchases
	Assign Input Tax indicator for Non-Taxable Asset Acquisitions
	Assign Chart of Depreciation to Company codes
Structuring Fixed Assets	Create Asset Class
	Create Account Determination key
	Create Screen layout
	Define Number range interval
	Define Screen Layout for Asset Master
	Assign Screen layout Rule to the Asset Class
Depreciation Areas	Real Depreciation area
	Derived Depreciation area
	Define Depreciation areas
	Specify Depreciation area types
	Specify Transfer of APC values
	Activate depreciation areas that will be used in asset class
	Define Screen layout for Depreciation areas
	Assign Screen layout to Depreciation Areas
Integration	Create GL accounts
	Assign GL Accounts to Account Determination key
	Specify Posting key for asset posting
	Specify Document type to post depreciation
	Activate Account Assignment
	Specify Controlling Object (WBS, CC, IO) for APC and Dep
	Specify Memo Value
	Specify Memo Value not considered for an ASSET Class
Depreciation	Depreciation Overview
	Define Multilevel Depreciation method
	Define  Period Control Depreciation Method
	Maintain Depreciation Key
End Users Transactions	Main Asset creation
	Sub asset creation
	Post Purchase to main assets
	Post Purchase to Sub assets
	Asset Explorer
	Reports to view assets
	Monthly Depreciation run
Asset Under Construction	Define Settlement Profile
	Assign Settlement profile to company code
	Create Number range for settlement document
	Create AuC Asset Master
	Post purchases to AuC
	Line Item settlement from AuC to Main Asset
Asset Retirement with Revenue	Create Asset Master Record
	Post External Acquisition to AMR
	Verify in Asset Explorer
	Run Planned Depreciation
	Retire Asset with Revenue-Customer
Asset Scrap	Create Asset Master Record
	Post External Acquisition to AMR
	Verify in Asset Explorer
	Run Planned Depreciation
	Asset Scrap
Intra Company Asset Transfer	Create Asset Master Record
	Post External Acquisition to AMR
	Verify in Asset Explorer
	Run Planned Depreciation
	Intra company transfer asset- Change Asset Class
Asset Accounting Yr .End Closing	Execute Depreciation run
	Execute Periodic Asset posting
	Execute Fiscal Year Change
	Asset Accounting Year End close

 

Organization Structure

Check Country Specific Settings

Transaction code: OA08

• Max LVA: If you set a maximum amount for low value assets, this prevents postings of amount greater than specified here to Asset class LVA
• Post Net Book Value: Set this indicator, if you do not want the system to create a gain/loss posting for an asset retirement by sale, or if you do not want a loss posting when the asset is scrapped. Instead, the system then generates a posting in the amount of the net book value of the given asset. This indicator applies only to depreciation area 01.

 

Copy Reference Chart of Depreciation

Chart of Depreciation

• The chart of depreciation, therefore, is a directory of depreciation areas organized according to business management requirements. Asset Accounting component enables you to manage values for assets in parallel in up to 99 depreciation areas
• Specify description of Chart of Deprecation
• Delete unwanted Depreciation Areas
• One or more company codes can be assigned to a Chart of Depreciation

Tcode: EC08

Path: SPRO – Financial Accounting – Asset Accounting – Organizational Structures– Copy Reference Chart of Depreciation

Reference COD	Copied COD	Company Codes
0US	MK14	MK14

 

Create 0% tax codes for Sales and Purchases

Transaction Code: FTXP

Create 0% input tax code: V0

Create 0% Output Tax Code: AO

 

Assign Input Tax indicator for Non-Taxable Asset Acquisitions

Tcode: OBCL

 

Assign Chart of Depreciation to Company codes

Tcode: OAOB

Path: SPRO – Financial Accounting – Asset Accounting – Organizational Structures – Assign Chart of Depreciation to Company code

 

Structuring Fixed Asset

Asset can be structured at below levels:

• Balance Sheet Level: Assets here can be grouped as per B/S version, Balance sheet items, GL accounts
• Classification Level: Assets are structured using asset classes
• Asset-Related Level: Asset can be structured based on Group asset, Main Asset and sub asset

 

Asset Classes

• Asset class is a classification criterion for Assets. E.g. Plant, Building, machinery, Software Internally developed
• The asset class provides default values to all asset master records in the class.
• The screen layout, tab layout and the field characteristics (required/optional/suppressed) of the asset master record can be set for the asset class.
• The assignment of asset numbers can also be controlled by the asset class.
• To create Asset Class following must be first configured:
  • Account Determination Keys
  • Screen Layout Rule
  • Number Range Interval

Transaction code to create asset class: OAOA

Create Below Asset classes in SAP

Asset Class	Description	Acct Determination	Screen Layout	No. Range	Inventory
LANDMK14	Land	61000	1000	01	X
BU_MK14	Building	62000	1100	02	X
PM_MK14	Plant and Machinery	63000	2000	03	X
FF_MK14	Furniture and Fixtures	64000	3000	04	X
VEH_MK14	Vehicles	65000	3100	05	X
AUC_MK14	AuC	66000	4000	06	Line Item settlement

AuC: Asset under Construction. Shown as separate Item in BS. When completed transferred to regular assets through line Item settlement (AIAB). Select Depreciation key which does not provide Depreciation for AuC. Select Negative APC in Depreciation areas to allow credit memo posting during capitalization

 

Account Determination Key

Asset class establish the connection between the asset master records and the GL account in Financial Accounting through account determination key

Tcode to create account determination key: S_ALR_870009195

Path: SPRO-Financial Accounting- Asset Accounting- Organizational Structures- Asset Classes – Specify account Determination

 

Create Screen Layout Rule

Tcode: S_ALR_870009209

Whenever you create an asset the system checks first the table ANKP.  If you have chart-of-depreciation-dependent account determination, then an entry in the table ANKP is made. If you than make a copy from such an asset class in the asset class there is another account determination than in the table ANKP and the system takes the account determination from the table ANKP and not from the asset class.                                                                            

Normally you can’t define chart-of-depreciation-dependent assignments (with transaction ANK1) if there is only one chart of depreciation. If you’d like to change (or delete) this assignment you can use following workaround:                                                   

    SM34 -> View ANKA_ALL -> Maintain                                      

       – select asset class ART (for example)                              

       – Then click in the left column on “Chart of dep – dep data”     

 

Define Number Range Interval

Tcode: AS08

Enter company code MK14. Now click Change interval button and enter the below details:

 

Define Screen Layout for Asset Master (AS01 Screen)

Tcode: S_ALR_87009044

Path: SPRO – Financial Accounting- Asset Accounting – Master Data – Screen Layout – Define Screen Layout for Asset Master Data

Select Screen layout 1000-Land and Select folder ‘Logical field group’

Select field group Posting information. Make ‘Capitalization date’ as required field

 

Assign Screen layout Rule to the Asset Class

Transaction code: OAOA

 

Depreciation Areas

• Depreciation areas are used to manage a fixed asset value for multiple purpose. For e.g. asset value as per Income Tax act, Companies act and for management purpose could be different. One of the reasons for this difference could be different depreciation rate under Income tax act and Companies act. Depreciation areas allow us to maintain parallel value of asset for different purposes.
• You need at least 1 depreciation area -01
• Maximum number of Depreciation areas allowed are 99
• Chart of Depreciation is made up of a list of Depreciation areas

Real Depreciation Area

• Denoted by 01
• Also called Book Depreciation
• Automatic Posting to FI Deprecation Accumulations, Asset Acquisition and Depreciation Account in company code currency
• Legacy data is always transferred to this Depreciation Area

Derived Depreciation Area

• This Depreciation area takes values from Real depreciation area. To these values it applies mathematical formula to arrive at Asset value as per derived depreciation area
• Derived depreciation area is denoted by a key (say 32) which should have higher value than the depreciation area ( say 10) from which it derives value

 

Define Depreciation Areas in Chart of Depreciation

Tcode: OADB

 To create new depreciation area, copy and rename an existing Depreciation Area

 

Specify Depreciation area Type

Transaction code: OADC

Specify Transfer of APC (Acquisition and Production cost) Values

Tcode: OABC

Specify how values are transferred from Real Depreciation Area to Derived Depreciation Area

Depreciation Area. Values transferred from Real Dep area 01 to Derived Depreciation areas

If selected system, ensure that all APC-relevant posting values to this depreciation area are transferred from the transferring depreciation area with no opportunity for changing the values

 

Activate Depreciation Areas which will be used in an Asset Class

Tcode: OAYZ

SPRO – Financial Accounting – Asset Accounting – Valuation – Determine Depreciation areas in the Asset Class

Foreign Currency Valuation in SAP

FASB 52: is issued by US accounting standard board. It provides guidance on financial reporting of companies operating in foreign countries

• Functional Currency: Currency of the economic environment in which the entity operates. In case of SAP functional currency is generally company code / local currency of the entity (In this case company Code). All assets, liabilities and operations of foreign entity should be measured in functional currency
• Group Currency: This is the currency of the parent company.
• Foreign Currency transactions: These are transactions in a currency other than the functional currency of the company code
• Unrealized foreign currency gain/ loss: Receivables/ Payables in foreign currency have to be reported in-group currency at exchange rate on month end. Difference between group currency and company code currency exchange rate on transaction date and month end is posted as profit/ gain from foreign currency revaluation. This is than reversed at the beginning of the next month
• Realized Gain / Loss: These are gain or loss due to exchange rate difference when actual payment made to vendor or cash received from customers.

Now let’s configure and test foreign currency valuation in SAP

Main topics covered in this tutorial are as below

s.no	Topics
1	Configure Parallel currencies
2	Enter exchange rates
3	Define New Exchange Rate Type
4	Specify Exchange Rate type to be used
5	Specify whether Direct or Indirect quote has to be used
6	Define Translation ratios
7	Valuation Method Setup
8	Define Valuation Area
9	Assign valuation area to accounting principles
10	Automatic account determination for open item exchange rate differences
11	Additional Settings to display valuation differences in FBL1N/ FBL5N
12	Month End Foreign currency revaluation and end user postings
13	Post a foreign transaction vendor Invoice
14	Update Exchange Rate in transaction code OB08
15	Run and analyze Month end foreign currency valuation

 

Configure Parallel currencies

Transaction code: OB22

1^st Local Currency

Srce curr. : Translation is taking transaction currency as base. We can also select translation using first local currency as base

Exchange Rate Type: M. this exchange rate type will be used for currency translation at the time of monthly valuation and also when posting FI documents in a currency other than company code currency

 

Enter Exchange Rate for Exchange Rate type ‘M’

Tcode: OB08

System will use the latest exchange rate

 

Define New Exchange Rate Type

Path: SAP Net weaver – General Settings – Currencies – Check Exchange Rate Type

Indicator that in the case of a missing exchange rate entry in the system for the required translation from one currency into another, the inverted exchange rate relationship may also be used

 

Specify Exchange Rate Type to be used by Vendor Invoice

Tcode: OBA7

We can specify the exchange rate type to be used by a specific document type ( KR) in transaction code OBA7

Let us change it to ‘M’

 

Specify whether Direct Quote or Indirect quote is to be used

Path: SAP NetWeaver – General Settings – Currencies – Define Standard quotation for exchange rate

 

Define Translation ratios between currencies

Path: SAP NetWeaver – General Settings – Currencies

Always use SAP default

 

Valuation Method Setup

Path: SPRO- Financial Accounting (New) – General Ledger Accounting (New) – Periodic Processing – Valuate – Define Valuation Methods

Tcode: OB59

Here define Valuation method for Open Items

Valuation Procedure:

• Lowest Value Principle: If selected valuation is done only if the exchange rate difference results in exchange rate loss. Valuation posted only if giving negative result
• Always evaluate: Exchange rate difference always posted whether gain or loss
• Revalue Only: The opposite of the first one, valuation is only posted when positive

 

Define Valuation Area

Path: SPRO- Financial Accounting (New) – General Ledger Accounting (New) – Periodic Processing – Valuate- Define Valuation Areas

Define valuation area for closing operations

Assign Valuation method defined in last step to the valuation area

 

Assign Valuation Area (RM/RU) to accounting principles

Path: SPRO- Financial Accounting (New) – General Ledger Accounting (New) – Periodic Processing- Assign valuation area to accounting principles

 

Account Determination for Open Item Exchange rate differences

Path: SPRO- Financial Accounting (New) – General Ledger Accounting (New) – Periodic Processing – Valuate- Foreign Currency Valuation – Automatic Posting for foreign currency valuation

Tcode: OBA1

Select transaction ‘KDF’

Here we have Customer / Vendor reconciliation accounts. For these automatic postings at time of foreign currency, revaluation must be specified

Vendor Master: XK03

Account Receivable

Accounts Receivable is a submodule of SAP FI and is used to manage and record Accounting data for all the customers. It handles customer invoices, customer receipts, correspondence and related activities. SAP Accounts Receivable will be covered in below  post

• SAP AR Master Data
• SAP Customer Correspondence
• SAP Customer Dunning
• Automatic calculation and posting of Interest on customer past due invoices
• Lockbox

Create Number ranges for Customer Accounts

• Number range can be internal / external
• Number range decide customer master number at the time of creation. If external number range, you have to provide customer number at the time of customer creation. If internal number range, system generate the customer number at the time of customer creation
• Number range are assigned to Customer Account Group

Transaction code: XDN1  

Define Account Groups

Customer are classified into various account groups. The account group determines the following:

• Number range interval of the customer
• Mandatory and Optional fields during customer master creation in transactions code XK01
• Whether a customer is one time vendor

Transaction code: OBD2

 

Field Status

This control the fields available in Customer master data accessed through transaction code XD01, XD02

 

Assign number range and Customer Account group and define customer account group characters

Transaction Code: OVT0

 

Assign Number Range to Account Groups

Transaction code: OBAR

 

Define sensitive field for Dual Control

Transaction code: S_ALR_87003378 IMG Path : SPRO – Financial Accounting – Accounts Receivable and Accounts Payable – Customer Accounts – Master Data – Preparation for creating customer master data – Define sensitive field for dual control (Customers) We can define certain fields in customer master as sensitive fields. Any changes to these have to be confirmed by two users for the change to be effective. Further once a sensitive customer is changed, customer is blocked for sales till changes confirmed This block is removed when the change to sensitive field is confirmed by second user in transaction code FD08. If the change is rejected by second user in transaction code FD08, customer remains blocked for sales. Generally fields like Customer Bank account number, routing number are defined as sensitive fields

 

Create Customer master Record

Centrally: XD01 Accounting Alone: FD01 Sales area only: VD01 Create customer in account group MKLO created earlier

 

 

 

 

Transaction codes for Customer Master

S.No.	Description	Transaction
1	Change Customer Master	XD02
2	Display changes to Customer Master record	XD04
3	Block / Unblock Customer Master	XD05
4	Flag Customer master for deletion	XD06

Delete Customer master records

Transaction code: OBR2 Master record can be deleted only if below conditions satisfied:

• No transactions posted to the customer
• Company code is not productive

 

Define Additional Fields for display in customer line item report

IMG Path : SPRO – Financial Accounting – Accounts Receivable – Customer Accounts – Line Items – Display line Items – Define Additional fields for Line Item Display Here we can define additional fields from table BKBF, BSEG, BSEC etc. which can be displayed in FBL5N

Incoming Payment

Task	Description	Transaction Code
Accounts for Cash Discount	System post to this account when clearing a customer invoice against payment received from customer with tolerances defined	OBXI
Define accts for Under/ Over payments	Discussed earlier	OBXL
Bank Charges	BNK : Bank Posting BSP : Bank Charges	OBXK

OBXI OBXK

 

Correspondence in SAP

Purpose When the customer misses the payment for the outstanding invoice within specified payment due date. The dunning letter is generated via sap program and send at customer address / email as reminder of outstanding payment. There are various standard correspondence types available like invoice print, account statement etc. Custom correspondence types can also be created. Correspondences can be created at the time of particular business transaction processing or at a later stage for already created transaction postings. Correspondence can be sent to customer/ vendor in various formats like email, and fax Various correspondence type which exist in SAP and can be copied to create new correspondence types are listed below:

Correspondence Type	Correspondence Description	Print Program	Required Data	Sample standard SAP Script Form
SAP01	Payment notices	RFKORD00	Document number	F140_PAY_CONF_01
SAP06	Account statements	RFKORD10	Account number and date	F140_ACC_STAT_01
SAP07	Bill of exchange charges statements	RFKORD20	Document number	F140_BILL_CHA_01
SAP09	Internal documents	RFKORD30	Document number	F140_INT_DOCU_01
SAP10	Individual letters	RFKORD40	Account number	F140_IND_TEXT_01
SAP11	Document extracts	RFKORD50	Document number	F140_DOCU_EXC_01
SAP13	Customer statements	RFKORD11	Customer number and date	F140_CUS_STAT_01

Correspondence Configuration in SAP

 

Step 1: Define Correspondence Type

IMG Path: – SPRO > Financial Accounting (New) > Accounts Receivable and Accounts Payable > Customer Accounts > Line Items > Correspondence > Make and Check Settings for Correspondence > Define Correspondence Types Transaction Code:-OB77 Here various SAP standard correspondence types are available. You can also create your custom correspondence types. You can specify that what data is required for generating a correspondence, e.g. for account statement you can specify that customer/ vendor master is necessary for the statement.    

Step 2: Assign Program to Correspondence Type

IMG Path:-SPRO > Financial Accounting (New) > Accounts Receivable and Accounts Payable > Customer Accounts > Line Items > Correspondence > Make and Check Settings for Correspondence > Assign Programs for Correspondence Types Transaction Code: –OB78 Here you need to link the correspondence generator program to the correspondence type. You can also specify different programs for different company codes. (Also, you can specify the default variant here for the program to execute. You can create such variant from transaction SE38/ SA38 for the program.) You can also create your own custom program as a copy of the standard program and can make suitable changes to meet any of your client specific need

Step 3 :  Determine Call-Up Functions for Correspondence Type

Path:-SPRO > Financial Accounting (New) > Accounts Receivable and Accounts Payable > Customer Accounts > Line Items > Correspondence > Make and Check Settings for Correspondence > Determine Call-Up Functions Transaction Code:-OB79 Here you need to specify that at what point of time you can generate the particular correspondence type.  The various options available are:-

• At the time of document entry (e.g. FB50, FB60, etc.)
• At the time of posting payments (e.g. F-28, F-26, etc.)
• At the time of document display or change (e.g. FB02, FB03, etc.)
• At the time of account display (e.g. FBL1N, FBL5N, etc.)

   

Step 4 : Assign Correspondence Form to Correspondence Print Program

Path:-SPRO > Financial Accounting (New) > Accounts Receivable and Accounts Payable > Customer Accounts > Line Items Correspondence > Make and Check Settings for Correspondence > Define Form Names for Correspondence Print Transaction Code: –OB96 Here you need to specify that which forms definition will be used by the correspondence print program. You can also specify a different setting for different company codes. (The SAP Script form is defined using the transaction SE71, where the various data is arranged in the output format to get processed.) You can also use two digit form IDs, by which you can call different forms for different form IDs in the same company code. This form ID can be given in the selection screen of the print program generating correspondence.

Step 5 : Define Sender Details for Correspondence

Path:-SPRO > Financial Accounting (New) > Accounts Receivable and Accounts Payable > Customer Accounts > Line Items > Correspondence > Make and Check Settings for Correspondence > Define Sender Details for Correspondence Form Transaction Code:-OBB1

• Here we can link the details for header, footer, signature and sender. This text is defined using the transaction code SO10 with text ID as linked above (e.g. ADRS).
• We can also specify a different setting for different company codes.
• Here we can also define two digit sender variant, which we can give to the selection parameters of the print program. This will enable different sender details within same company code.

Step 6 : Define Sort Variants for Correspondence

Path:-SPRO > Financial Accounting (New) > Accounts Receivable and Accounts Payable > Customer Accounts > Line Items > Correspondence > Make and Check Settings for Correspondence > Define Sort Variants for Correspondence Transaction Code: –O7S4 You can specify in which order the correspondence letters will get generated. E.g. if you are generating account statement for multiple vendors, then vendors will get sorted in this order and then the letter will get generated. This Sort Variant can be given in the selection screen of the print program generating correspondence.   

Step 7 :  Define Sort Variants for Line Items in Correspondence

Path:-SPRO > Financial Accounting (New) > Accounts Receivable and Accounts Payable > Customer Accounts > Line Items > Correspondence > Make and Check Settings for Correspondence > Define Sort Variants for Line Items Transaction Code: –O7S6 You can specify that in which order the various line items will appear in a correspondence letters. E.g. if a vendor account statement has multiple invoices, then invoices will get sorted in this order and then the letter will get generated. This Sort Variant can be given in the selection screen of the print program generating correspondence.

 

Correspondence Generation and Printing

Correspondence can be generated at below times:

• At the time of document entry (e.g. FB50, FB60, etc.)
• At the time of posting payments (e.g. F-28, F-26, etc.)
• At the time of document display or change (e.g. FB02, FB03, etc.)
• At the time of account display (e.g. FBL1N, FBL5N, etc.)

 

Correspondence Generation (Method A)

The correspondence can be generated while you create, change or display the document. Path:  Environment > Correspondence and select relevant correspondence type, e.g.  below screen in FB70 customer invoice creation:- Similarly correspondence can be generated from document display/ change from the transaction, like in FB02/ FB03/ FLB5N, etc.      

Correspondence Generation (Method B)

For existing accounting documents you can use transaction code FB12. Enter company code, Customer number, Posting date etc. as shown below. After that correspondence is requested   

Correspondence Generation (Method C)

From transaction F.27, you can generate the correspondence (Account Statement) for vendor(s) / customer(s). Here “Indicator in Master Record”, the value given should match with the value given in customer/ vendor master data > Company Code > Correspondence.

Update customer master with correspondence indicator : XD02

 

Display the spool (Correspondence letter generated) : SP01

Correspondence Printing Transaction code : F.61 Correspondence request generated in transactions FB12 and FB70 will be printed here

Display the correspondence generated/Spool in Transaction code : SP01

 

Interest calculation on customer past due invoices in SAP

This functionality calculates interest at the specified rate ( in SAP configuration) interest on customer invoices past due and Invoices paid after due date. This interest is debited to customer account and credited to interest received account. Program can also create a correspondence with details of past due customer invoices, interest amount on these invoices. This it can send automatically to customer through various means like email etc.

1. Define Interest calculation types
2. Prepare Item interest calculation
3. Define Reference interest rates
4. Enter interest values
5. Define time-based terms
6. Calculation of interest on arrears
7. Assign interest indicator in customer master
8. Calculate and Post interest on customer past due invoices

 

Define Interest Calculation Types in SAP

Path: SPRO – FA – AR/AP – Business Transactions – Interest Calculation – Interest Calculation Global Settings – Define Interest Calculation Types

Here we define the interest indicator. This has to maintain in customer master on whom interest has to be calculated.

Interest Calculation Types:

• P: Calculate interest on invoice line item
• S: Calculate interest on customer account balance

 

Prepare Item interest Calculation in SAP

Path: SPRO – FA – AR/AP – Business Transactions – Interest Calculation Global settings –Prepare Item interest calculation

Here make general settings for item interest calculation:

• Select interest calculated: Open Invoices due for payment, Cleared invoices after due date
• Reference date: Date with reference to which interest on overdue invoices is calculated.
• No Interest payment: Interest is calculated on items paid before due date (Credit interest) and items paid after due date (Debit interest). If you do not want credit interest to be credited to customer account, select this check box
• Post Interest: Select to post interest to customer account
• Posting with Invoice Reference: If you have set this indicator, the interest receivables created are posted with reference to the invoice for which interest was calculated.

 

Define Reference interest rates

Path: SPRO – FA – AR/AP – Business Transactions – Interest Calculation – Interest calculation – Define reference interest rates

Here you maintain interest rate for which interest rate percentage is maintained later in the configuration. This percentage is used to calculate interest amount

 

Enter Interest value

Path: SPRO – Financial Accounting – AR/AP – Business Transactions – Interest Calculation – Interest calculation- Enter interest value

 

Define Time Based Terms

Path: SPRO – FA – AR/AP – BT – Interest Calculation – Interest calculation- Define Time based terms

In this activity, you specify how the system determines an interest rate for each interest indicator.

• Specify a reference interest rate for which the interest rate is defined.
• Specify the required interest rate directly in the Premium field without specifying a reference interest rate.
• Specify a reference interest rate and an interest rate in the Premium field. The interest premium is added to the reference interest rate during interest calculation.

 

Calculation of Interest on arrears

Path: SPRO – Financial Accounting – AR/AP – Business Transactions – Interest Calculation – Interest Posting – A/R: Calculation of interest on arrears

In this step, you define the specifications for posting the interest calculated as interest on arrears.

The account determination is carried out via the posting interface of application 0002.

Account determination keys and posting details

For the business transaction account determination key, 1000 (interest earned) and 2000(interest paid) should be entered.

For every combination of the account determination keys, you specify a debit-posting key, a credit posting key and account symbols (posting details). You use the account symbol 1000 for the customer posting.

GL Accounts

G/L accounts: For each G/L account symbol, you specify the account allocation for interest earned and interest paid in full.

 

Create Account symbols

 

Assign Interest indicator in customer master

Tcode: XD02

 

Assign forms to print interest calculation

Path: SPRO – Financial Accounting – AR/AP – Business Transactions – Interest Calculation – Print 

 

Calculate and Post interest for customer overdue items

Transaction code: FINT

Interest document posted: FB03

 

SAP Online Courses

For detailed, step-by-step instructions on SAP Lockbox follow along with my video tutorial below

 

SAP Dunning

Purpose 

When the customer misses the payment for the outstanding invoice within specified payment due date. The dunning letter is generated via sap program and sent to customer address / email as reminder of outstanding payment.  

The dunning system covers the following documents