What is 'debit interest share' in SAP FS-MCM-CSL - Combined Settlement?

debit interest share - Overview

• Component: FS-MCM-CSL

• Component Name: Combined Settlement

• Description: The part of the interest expenses from a combined settlement result that the system debits to a participant account. A BAdI implementation with a distribution method according to a fixed percentage rate enables you to distribute the debit interest, overdraft interest, and commitment charge calculated in a compensation proportionately among all participating accounts. For this interest distribution method, every account added to a master contract relationship is assigned an individual, fixed share of the debit interest between 0 and 100%. You can distribute the credit interest share according to the debit interest share. Both count as interest result shares.

debit interest share - Details

• 
  Key Concepts: 
  Debit interest share is a component of the FS-MCM-CSL Combined Settlement module in SAP. It is used to calculate the interest rate that is applied to a customer’s account when they have an overdue payment. The interest rate is calculated based on the customer’s credit rating and the amount of time that the payment has been overdue. 
  
  How to use it: 
  In order to use debit interest share, you must first set up the FS-MCM-CSL Combined Settlement module in SAP. Once this is done, you can enter the customer’s credit rating and the amount of time that the payment has been overdue. The system will then calculate the interest rate that should be applied to the customer’s account. 
  
  Tips & Tricks: 
  It is important to ensure that you enter accurate information when setting up debit interest share in SAP. If you enter incorrect information, it could result in incorrect calculations and inaccurate interest rates being applied to customers’ accounts. 
  
  Related Information: 
  For more information about debit interest share, please refer to the SAP Help documentation for FS-MCM-CSL Combined Settlement.