Interests

Calculate Interest on Areas without Posting (F.4C)

After correspondence and interest calculation on MSMED, next, we’ll explore about calculating interest on areas without postings. So we’ll use the transaction code F4C. This is the navigation i.e. the SAP menu path for calculating the interest without postings.

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Now here, we’ll use a transaction code F.4C. we’ll have to provide the vendor account number, and we’ll have to set the interest indicator as M1.

So here we’ll put the vendor account number. Now here we can provide the multiple vendor account number at a same time by using this multiple selection option, And there, we can use the multiple vendor account numbers. Then we’ll have to set the interest indicator as M1 since we are calculating the interest for the vendors. Then we’ll have to create, that is, check the output control button. So we’ll have to create a form, so we’ll check that checkbox. Then we’ll check this checkbox also since we have to display the additional line items for that particular line item. And we’ll click this checkbox for print output, that is print account overview. After maintaining the settings for calculating the interest on the area, we’ll click on the execute button. As we click on the execute button, we’ll get a screen where it will give an overview of the calculated interest on those areas.

So these are the 2 vendors for which the calculation has been done. One vendor is KIRTI JAIN and the other vendor is TEST12345. Now this is the overview, which is generated for this calculated interest.

Now this is the print review, which we’ll get for the interest on areas for those vendors. So this is how a letter is been sent to the vendors on the interest calculated without postings, and these are the details of the line items for that particular vendor.

Interest Rate Maintaining (OB83)

So we have seen how to calculate the interest on areas without posting. Now last, we’ll see how to maintain this interest rate using transaction code OB83. This is the SAP menu path for maintaining the interest rate.

So here we’ll use direct transaction code  OB83 or we can go via this SAP menu path, which is under accounts receivable and payable. And under that, we’ll go to business transaction, where we’ll calculate the interest by clicking on enter interest values. Now once we click on that, we’ll get a screen where we have to provide the reference interest rate value.

So here we have used M1 as our reference number while it describes as interest on MSMED. Then we have to provide the interest rate. So here we have provided the interest rate in this field. So this is how we maintain the interest rates for MSMED. After maintaining that, once we click on the enter button, we’ll get a screen where we have to provide the details on the interest terms.

So we’ll provide the interest based on the selection of open and all cleared items, radio button. Then we’ll have to provide the calendar type and the factory calendar ID. And we’ll click the checkbox based on calculate interest on items paid before due date, and then we’ll have to select the output control, either print posting with key text or output document type text. So this is how we maintain the settings for interest calculation indicator. So here we have seen about how to calculate the interest rate. So here we come to an end of this session, which was on dunning process. Let us summarize what we have learned from this session.

We have seen about a dunning process, which is in simple terms a reminder which is sent to the customer about their outstanding payments period wise. Now, under dunning process, we have seen about correspondence using transaction code FB12 and F64. Under correspondence, we have learned about account statement, then open items, that is open line items, then payment options, setting reminders for the payment options, then certain restrictions on the payment options. And we have seen what are interest rates. Then we have seen how to calculate the interest based on MSMED, then how to calculate interest on areas without posting using transaction code F4C. And last, we have seen how to maintain the interest rate using transaction code OB83. So these are the topics, which we have learned on the due process.