What is grace period in SAP FS-CML - Loans Management?

SAP Term: grace period

• Component: FS-CML

• Component Name: Loans Management

• Description: A specific period after the due date for the customer to make the payment. The interest rate during the grace period is normally between the regular interest rate and the IOA interest on arrears rate.

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• Key Concepts: 
  A grace period is a period of time after a loan payment is due, during which the borrower does not incur any late fees or penalties. In the FS-CML Loans Management component of SAP, the grace period is used to define the number of days after the due date that a borrower can make a payment without incurring any late fees or penalties. 
  
  How to use it: 
  In order to use the grace period feature in FS-CML Loans Management, you must first set up the grace period in the system. This can be done by navigating to the “Grace Period” tab in the Loan Management module and entering the desired number of days for the grace period. Once this is done, any payments made within this grace period will not incur any late fees or penalties. 
  
  Tips & Tricks: 
  It is important to note that the grace period only applies to payments made after the due date. If a payment is made before the due date, it will still be considered late and may incur late fees or penalties. Additionally, it is important to ensure that all payments are made within the grace period in order to avoid any late fees or penalties. 
  
  Related Information: 
  For more information on setting up and using the grace period feature in FS-CML Loans Management, please refer to SAP’s official documentation on Loan Management. Additionally, you can contact your SAP support team for further assistance with setting up and using this feature.