Use Multiple FI Functions to Manage and Calculate Accounts Receivable Item Interest on an Ad Hoc Basis

  • by Justin Gurski, Dickinson & Associates, Inc.
  • November 11, 2011
Have you ever asked the following question: Do you charge interest on overdue receivables? Was the reply that you received similar to this response: Not always, but we want the ability to do so at any given time. With some behind-the-scenes configuration across a few areas of the FI modules within SAP ERP and some process management, you can address this requirement.
Key Concept
Users of SAP ERP applications use sets for various tasks. Account groups, cost center groups, and financial statement versions are all types of sets within the SAP ERP system. A basic set of day-to-day transaction codes relevant for future interest calculation can be configured on a transaction code table. The set can then be added to the substitution configuration Boolean logic that is used to block interest calculation on accounts receivable-related transactions. This set makes future maintenance of the relevant transaction codes easy because you don’t have to revise the substitution configuration every time a transaction change is required to be added or deleted for the interest calculation process. Instead, all you need to do is change the set.

Interest calculation on overdue receivables has become more prevalent in the consumer products and distribution industries in these times of tighter credit and increased emphasis on timely cash collections. In my experience, some, but not all customers were subject to interest on their overdue invoices. Given this requirement, I developed the solution on which this article is based.

The method for calculating interest on overdue receivables spans a few areas of the Financials space within the SAP ERP system, ranging from the somewhat technical to straightforward accounting. The technical understanding ranges from semicomplex Boolean logic within FI substitution configuration to the execution of the interest calculation on the end user side. Now I explain the following steps to configure and execute this process:

  1. Build a prerequisite for a substitution configuration that you execute to make the interest block indicator available for substitution.
  2. Create a basic set of transaction codes that are the result of accounts receivable (FI-AR) transaction postings
  3. Configure the Financial Accounting Line Item substitution to block interest calculation on FI-AR-related transactions
  4. Run  program RGUGBR00 with transaction SA38 to generate the substitution
  5. Execute transaction OB32 to allow the interest block to be changed on FI documents
  6. Configure the interest calculation
  7. Define the number range for the interest form stored in the Reference field of the financial document that is created from the interest calculation
  8. Prepare the calculation for item interest
  9. Define the reference interest rate
  10. Define time-based terms to attach an effective date to an interest rate
  11. Enter actual interest values into the reference interest rates
  12. Prepare the interest posting configuration
  13. Assign forms to the interest indicators for customer-facing correspondence
  14. Populate the interest indicator in the company code view of the customer master
  15. Examine a customer account snapshot with a custom SAP List Viewer (ALV) to analyze a customer account for the purposes of selective interest calculation
  16. Execute the interest calculation

Step 1. Build a prerequisite for a substitution configuration that you execute in step 3 to make the interest block indicator available for substitution. The interest block indicator is set in the line item of a customer document to prevent the customer document from being selected for interest calculation. The substitution configuration activates the interest block indicator for all customer documents as they are posted in this example.

Justin Gurski

Justin Gurski has more than 17 years of experience implementing SAP solutions in the finance, controlling, and business intelligence areas. Prior to becoming an SAP consultant, Justin worked within various industries in finance, cost accounting operations, and system areas with increasing responsibility. He holds a CPA license, a BBA in accounting and management sciences, and an MBA in strategy and information systems.

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