BILL OF EXCHANGE REQUEST CONFIGURATION:

Define the accounts for bill of exchange request: path: financial accounting-bank accounting-business transactions-bill of exchange transactions-bill of exchange receivables- defines accounts for bill of exchange transactions.

TC: OBYN

Double click on D and R combination of Bill of Exchange request Give chart of accounts:2006

Give customer reconciliation account: accounts receivables ac

Give special general ledger account: bill of exchange receivables account Save the transactions.

Enter the bill of exchange request in easy access screen: TC: FBW1.

Give the header data

Give Bill of Exchange amount and due date and other details.

Post the invoice transaction in F-22

Convert the bill of exchange payment request into bill of exchange payment

Give the header data details

Give the bill of exchange special gl indicator Give the bill of exchange request document number

Press enter and give the amount and verify the other details

Click on process open item button and give the customer account number and click on again process open item button simulate and save it

Verify the accounts

Interest calculation on open items: business process:

The company used to charge the customers 12%int on the open items with over due and payments made after over due. Please configure the requirement in sap environment.

Sap configuration of interest calculation: refer earlier chapter of interest on gl balances:

1. Define interest calculation types:

Path: financial accounting-accounts receivable and payables-business transactions-interest calculations-interest calculation global settings-defines interest calculation types.

Click on new entries button

Figure 112

Give two character id for interest indicator give description and interest calculation type S

Define the number ranges for interest forms: same path:

Give company code: 2006 click on change interval button click on insert interval button give number range and interval and click on insert button and save the activity

Prepare interest calculation on arrears :( general settings for interest calculation)

Path is same: transaction code: OB82 Click on new entries button

Give interest indicator

Figure 113 Select the items as required:

Open items and cleared items: all open items and cleared items after due date including credit memos and down payment offsetting entries and other related items also.

Open items and items cleared with payment: the system calculates the interest on open items and the cleared items with payment only (not by any credit memos and down payments)

No open items with all cleared items: system calculates interest on cleared items (all types) only

No open items with all cleared with payment items only (only payment) Give the calendar type

Give transfer days and tolerance days also if required,

Calculate interest on items paid before due date:

Means any payments made before due date; the system calculates the interest on such items if you select this check box.

You can give the payment terms also for calculation of interest if required Give the number range (what you have created for this purpose) i.e.I2 Save the data

Define Time based Terms: path: up to interest calculation is same >interest calculation>define time based terms: TC:OB81

Figure 114 Give the interest indicator: 21

Give the currency: inr Give the wef: 010406

Give the sequential number: 01

Give the terms: debit interest: arrears interest Give the interest directly in premium column:

Save

Like the way create for credit interest: arrears interest cal also Give sequential number :02

Interest Posting: path: up to interest calculation is same >interest posting>AR calculation of interest on arrears

TC:OBV1

Click on accounts button Give chart of accounts

Figure 115

give account symbol :0001 currency inr Gl account no:403000 give account symbol:0002 currency inr GL account no:403000 give account symbol 1000 currency inr Gl account no:+(masking) go to men item go to>posting specs>

click on create button give business transaction 1000 company code+ interest indicator:21 business area+ and continue

give postingkey:01 (customer debit) give account symbol:1000(customer) give posting key:50(gl credit)

give account symbol:0001(interest received) save

Assign forms for interest indicator: OB84. Path :same>print>

Figure 116

Select any one select copy as function

Give interest indicator and company code and save.

Form name for the interest indicator is: as above.

Note: incorporate the interest indicator in customer master record: FD02 EXECUTION OF INTEREST ON CUSTOMER BALANCES:

PATH: accounting-financial accounting-accounts receivables-periodic processing-interest calculations-arrears interest-free seletions-F-24 free selections

Give the customer number Give the company code Give the settlement period Give the form name

Select the print form check box Give the printer name

Select print account overview check box Give the printer name

Execute

To post the interest to the customer account:

Select post interest settlement check box and Update the master record check box and execute.

A session will be created as RFDUZI00 and execute the session in SM35 Or menu item system>services>batch input sessions> select the session click on process button select display errors only button again click on process button; you will get session overview button and verify the document of interest posting.

Note: if the interest is not posted go and verify the customizations.

Calculate the interest on down payments and other special gl transactions:

Generally in real time we used to calculate the interest on down payments and sometimes delay in payment of bill of exchange transactions also. For this purpose we have to configure the alternative interest indicator. Because these transactions are to be considered as Balances in General Ledger account; accordingly the system applies balances interest calculation.

Path: Prepare interest calculation on special general ledger accounts:

financial accounting-accounts receivable and accounts payable>business transactions>interest calculations>interest indicator global settings>prepare interest calculation on special genera ledger accounts: TC: OBAB

Figure 117 Give the interest indicator

Give the account type Give the special GL indictor

Give the alternative interest indicator you want to apply the interest on spl GL accounts.

Save the entries.

Maintain withholding tax code for interest payments: path: same as above

Give country code

Give the withholding tax type Give valid date

Give tax code for interest Save the transaction.

DUNNING:

Dunning is the functionality in sap to serve the notice to the customers, vendors, and special general ledger transactions also, which are overdue for the payment. Dunning means to remind or to give notice for payment of due items. It is regular activities to serve the notice to customers for their overdue amount. To customize we have to follow the following procedure.