3369173 - Dunning Interest Calculation Logic

There is a requirement to know what is the logic behind the Dunning Interest calculation.

SAP Business ByDesign

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, there is an unexpected value in Default Interest.

Note: Alternatively, the Default Interest amount can be checked without opening the Dunning itself, under the 'Dunning Information' segment.

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

Dunning Amount * (Interest rate % / 100) * (Overdue Days / 365) = Interest Amount‌ 

For example:

Dunning Amount: 1000 CCY (CCY stands for currency)
The relevant Dunning Step's Default Interest rate: 5%
Overdue Days: 3

Interest Amount = 1000 * (5 / 100) * (3 / 365) = 0.41 CCY (with rounding)

Additionally, the interest rate configuration can be checked by 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. 
4. Press 'Edit dunning strategies'.
5. Select the relevant Dunning Strategy.
6. Navigate to the 'Assigned Business Transactions to Be Dunned' tab.
7. The Default Interest rate is displayed for all existing Dunning Steps.

Expected system behavior.

Dunning, Interest Calculation, Logic, value, Dunning strategies, Business Transaction, Dunning Amount, Interest Rate , KBA , SRD-FIN-ACR , Receivables , How To