What is imputed interest in SAP FI-FIO-AR - Fiori UI for Accounts Receivable?

SAP Term: imputed interest

• Component: FI-FIO-AR

• Component Name: Fiori UI for Accounts Receivable

• Description: Interest that could have been earned if the money had been invested in capital markets instead of being tied up in fixed assets or as credit extended to customers. Imputed interest is calculated on overdue amounts based on the amount due and days overdue according to the following formulas: Open Items: Overdue Amount x Today - Net Due Date/365 x 1% Cleared Items: Overdue Amount x Clearing Date - Net Due Date/365 x 1%

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• Key Concepts: 
  Imputed interest is a type of interest that is calculated on overdue payments. It is a form of compensation for the creditor, as they are not receiving the full amount of the payment on time. In SAP, imputed interest is calculated using the Fiori UI for Accounts Receivable (FI-FIO-AR). 
  
  How to use it: 
  In order to calculate imputed interest in SAP, you must first set up the FI-FIO-AR Fiori UI. This can be done by navigating to the “Settings” tab in the Fiori UI and selecting “Imputed Interest” from the drop-down menu. Once this is done, you can enter the relevant information such as the amount of the payment, the due date, and any other relevant information. The system will then calculate the imputed interest based on this information. 
  
  Tips & Tricks: 
  When setting up imputed interest in SAP, it is important to ensure that all of the relevant information is entered correctly. This includes the amount of the payment, the due date, and any other relevant information. Additionally, it is important to ensure that all of the necessary settings are enabled in order for imputed interest to be calculated correctly. 
  
  Related Information: 
  For more information on how to set up and use imputed interest in SAP, please refer to SAP’s official documentation on FI-FIO-AR Fiori UI for Accounts Receivable. Additionally, there are many online resources available that provide detailed instructions on how to set up and use imputed interest in SAP.