How To Fix FI_E106 - A penalty of &2 &1 has resulted due to late payment

SAP Error Message - Details

• Message type: E = Error

• Message class: FI_E - Message Class for FM English Developers

• Message number: 106

• Message text: A penalty of &2 &1 has resulted due to late payment

Self-Explanatory Message

Since SAP believes that this specific error message is 'self-explanatory,' no more information has been given.The majority of messages in the SAP system have a message text, however this is frequently insufficient to comprehend or resolve the problem.

To make things easier, more detailed information is frequently added to describe the issue, how to fix it, and the necessary steps or configuration modifications.

Unfortunately, there isn't any extra information in this error notice.

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Smart SAP Assistant

• What is the cause and solution for SAP error message FI_E106 - A penalty of &2 &1 has resulted due to late payment ?

  The SAP error message FI_E106 indicates that a penalty has been incurred due to a late payment. This message typically arises in the context of financial transactions, particularly when dealing with vendor invoices or payments. Here’s a breakdown of the cause, potential solutions, and related information:
  Cause:
  
  Late Payment: The primary cause of this error is that a payment was not made by the due date, leading to a penalty being applied.
  Payment Terms: The payment terms defined in the vendor master data or invoice may have specific conditions that trigger penalties for late payments.
  Configuration Settings: The system may be configured to automatically calculate penalties based on certain criteria, such as payment delays beyond a specified grace period.
  
  Solution:
  
  Review Payment Terms: Check the payment terms associated with the vendor or invoice. Ensure that they are correctly set up and that you understand the implications of those terms.
  Make Timely Payments: To avoid penalties in the future, ensure that payments are made on or before the due date.
  Adjust Payment Schedule: If late payments are a recurring issue, consider adjusting the payment schedule or negotiating better terms with the vendor.
  Manual Adjustment: If the penalty is deemed incorrect or if there are extenuating circumstances, you may need to manually adjust the penalty in the system, depending on your organization's policies.
  Consult with Finance Team: If you are unsure about the penalty or how to resolve it, consult with your finance or accounts payable team for guidance.
  
  Related Information:
  
  SAP Configuration: The penalty calculation can be influenced by settings in the SAP configuration (e.g., in the Financial Accounting module). Review the configuration settings related to payment terms and penalties.
  Documentation: Refer to SAP documentation or help files for detailed information on how penalties are calculated and how to manage them.
  Transaction Codes: Familiarize yourself with relevant transaction codes in SAP that may help you analyze payment history, vendor terms, and penalties (e.g., FBL1N for vendor line items).
  User Exits or BAdIs: In some cases, custom logic may be implemented through user exits or BAdIs to handle penalties differently based on business requirements.
  
  By addressing the underlying causes and implementing preventive measures, you can minimize the occurrence of this error in the future.