Interest Calculations on msmed

Restrictions for Payment Notices

We have seen about payment notices, which are sent to the business partners, but we have certain restrictions for payment notices. Let us see what are the restrictions applied to the notices. First is, only incoming payment postings made with the functions internal transfer posting with clearing and incoming payment and fast entry incoming payment are supported. So, the options, like internal port transfer posting with clearing incoming payment and fast re-entry incoming payment are only supported for payment notices. Then a negative total amount to be paid is interpreted such that a clearing is carried out on other account to account for the incoming payment.

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Standard payment notices do not make an exception for cases where money has been paid to the customer. Thus, in this case, the customer would receive a payment notice. And the third restriction is intercompany transactions are not supported. Then we have fourth restriction as even for office head that is head office with local processing. Payment notices are sent to the head offices and not to the branches. Then only business transactions for one customer may be posted in a document for payment notice to one time account customers. And last is for clearing between customers and vendors, if the appropriate fields are marked in the master records, only one payment notice is created per pair of customer or vendor and sent to the customer. So these are the restrictions, which are there for payment notices.

Internal Documents

Next, we have internal documents. Internal documents are documents that we print out for our accounting department or another department. We can print out either individual internal documents. For example, when changing or displaying a document or a whole series of the internal documents. Now here, the documents that are generated from recurring entries are original documents. So we have something called as internal documents that we print for our accounting department. Now after exploring all those internal documents open item list, accounting documents, payment options, we’ll see how to further process the correspondence using the transaction codes.

Now here there are 2 steps involved in creating the correspondence. The first step is we require the desired correspondence type. That is, we request for the desired correspondence types. When we make a request, the system initially only knows internally which correspondence types should be created. The correspondence types are then processed that is proposed to us when we are processing the documents and the accounts online. So for more information, we read the topic for requesting the individual correspondence types. Which correspondent types are offered and which functions depends on however system is configured. So this is the first step based on the correspondence type, and it acts as the system is configured. Now the second step is the requested correspondent types are printed. Printing is generally carried out automatically at a certain frequency. This prints all requested correspondence types in exceptional cases. However, it is also possible to print certain correspondence type straight away by themselves. So on the second step, we’ll print the requested correspondence types. However, a print order is put into the spool system for each company code and correspondence type. From the spool, we can send the letters to whatever printer we want. And for more information, we can read the topics about the printing corresponding. So here we first define the correspondence type, and then based on the correspondence type, we print those correspondence. And we can select an appropriate spool for printing those letters. So here, we’ll go to transaction code FB12 for correspondence, and this is the SAP menu path for printing this correspondence.

So once we go to FB12, we’ll request for the company code, that is, request correspondence under our company code.

So we have taken 1000 as our company code and we press enter. Once we press enter, we get a screen where we have to define our open item list. Now, this open item list will maintain company code, customer data, and the open item key date. So here it will give a description of the open items list, which we need to send to the vendors. Then we’ll get a screen where we have to maintain the correspondence request.

So here we have the maintenance of correspondence, the user, and other details, like company code and account type. After maintaining these details, we’ll click on the execute button. And once we click on the execute button, we’ll get this maintain correspondence request screen with the details for that particular vendor or the client.

And this below is the print preview of the open item list. So here we have this number of documents for having those open items till period of 11-11-2008.

And at the bottom is the balance on the key date, which is left. So this is the balance, which is left for this particular date. So this is how we request for the correspondence type, and we print the data. After correspondence, we have something called as interest calculation on MSMED. Let us see what is an interest calculation.

Interest Calculation on MSMED

Before that we have some prerequisites for doing an interest calculation. For getting the interest calculated for the MSMED vendors, we have to maintain the interest indicator as M1. The system will only calculate interest for the vendors where the interest indicator is maintained. So we have to first maintain the interest indicator as M1 in the system. Now this is the change vendor’s initial screen.

Now here we’ll have to provide the vendor name, that is the vendor number and the company code, and then we’ll press the enter button. Now once we press the enter button, we’ll get a screen where we’ll have to maintain the M1 indicator.

Now here in the interest calculation time, we’ll maintain the M1 indicator. So as per the requirement, we’ll be only calculating interest based on MSMED for provisioning. So no need to pass the actual entries in the vendor accounts. So this is how we maintain the interest calculation on MSMED vendors by making the indicator, that is, the interest indicator is M1.