What is arrears surcharge in SAP FI-CA - Contract Accounts Receivable and Payable?

SAP Term: arrears surcharge

• Component: FI-CA

• Component Name: Contract Accounts Receivable and Payable

• Description: Charge that is levied during clearing of a receivable with late payment or clearing of a receivable with a credit memo posted later and that is posted when the receivable is cleared.

Smart SAP Assistant

• Key Concepts: 
  Arrears surcharge is a feature of the FI-CA Contract Accounts Receivable and Payable component of SAP. It is used to calculate and apply a surcharge to overdue payments. The surcharge is calculated based on the amount of time the payment is overdue and can be configured to be applied automatically or manually.
  
  How to use it: 
  To use the arrears surcharge feature, you must first configure the parameters for the surcharge. This includes setting the amount of time after which the surcharge will be applied, as well as the rate at which it will be applied. Once configured, the arrears surcharge will be automatically applied to any overdue payments.
  
  Tips & Tricks: 
  When configuring the arrears surcharge, it is important to consider how it will affect your customers. Make sure that the rate and time period are reasonable and that customers are aware of when they will be charged a surcharge. Additionally, consider offering discounts or other incentives for customers who pay on time.
  
  Related Information: 
  For more information about arrears surcharges in SAP, please refer to the official SAP documentation here: https://help.sap.com/viewer/product/FI_CA/2020/en-US/fica-contract-accounts-receivable-and-payable-en.html