What is 'interest on default' in SAP FS-LOC-BR - Localization of Banking in Brazil?

interest on default - Overview

• Component: FS-LOC-BR

• Component Name: Localization of Banking in Brazil

• Description: An additional interest that is paid when any part of the principal or interest remains unpaid after maturity.

interest on default - Details

• 
  Key Concepts: 
  Interest on Default is a feature of the FS-LOC-BR Localization of Banking in Brazil component of SAP. It allows users to calculate and manage interest on overdue payments. This feature is designed to help companies comply with Brazilian banking regulations and ensure that they are not charged excessive interest on overdue payments. 
  
  How to use it: 
  In order to use the Interest on Default feature, users must first configure the system to calculate interest on overdue payments. This can be done by setting up the relevant parameters in the system, such as the interest rate, payment terms, and payment period. Once these parameters have been set up, the system will automatically calculate and manage interest on overdue payments. 
  
  Tips & Tricks: 
  It is important to ensure that all parameters are correctly configured in order for the system to accurately calculate and manage interest on overdue payments. Additionally, users should regularly review their settings to ensure that they are up-to-date with any changes in Brazilian banking regulations. 
  
  Related Information: 
  For more information about Interest on Default and other features of the FS-LOC-BR Localization of Banking in Brazil component of SAP, please refer to the official SAP documentation.