SAP Knowledge Base Article - Public

3369173 - Dunning Interest Calculation Logic

Symptom

You would like to know how is the logic behind the Dunning Interest calculation.

Environment

SAP Business ByDesign

Reproducing the Issue

  1. Go to Receivables work center. 
  2. Go to Dunning view. 
  3. Select the option "All Dunning Proposals" in the dropdown. 
  4. Select the desired Dunning ID and open it. 
  5. In the General tab, you will see an unexpected value in Default Interest. 

Cause

The system calculates interest rate and rounds the amount generated by the below formula:

(Dunning amount * Dunning_relevant_step-Default interest rate / 100 * Overdue days / 365)

Also, you can check the configuration following the steps below: 

  1. Go to Business Configuration work center. 
  2. Go to Overview view. 
  3. Search for the Activity: Dunning Strategies and open it. 
  • Dunning Strategies
    Edit dunning strategies

Resolution

Expected system Behavior.

Keywords

Dunning, Interest Calculation, Logic, value, Dunning strategies , KBA , SRD-FIN-ACR , Receivables , How To

Product

SAP Business ByDesign all versions