Payoff is a function provided by SAP IS Banking loan management module. After disbursement of the loan, repayment starts from the business partner. In SAP Loan Management, Payoff is a functionality, which enables the end user in SAP to foreclose the loan contract or receive partial payment, against a specific contract from the business partner. In SAP Banking Loan Management module, âPayoffâ means as foreclosing of loan contract.
We can define account determination, condition types, and condition groups in customization related to payoff. At the time of payoff, Bank can charge one time interest with the ‘Due on date’ function, which means, interest is calculated on payment date. We can change the condition at the time of payoff. As the partial payoff has occurred, we have to change interest rate, upcoming installment amount, and other charges. At the time of payoff, few things need to be considered such as, overdue Items, Credit balance of the customer, regular payment, etc.
In SAP Easy Access T-Code for Payoff from overpayment is:-
FN_PAY_PROC_PAYOFF – Create Payoff from Overpayment
In IMG we can maintain details for Payoff Template configuration and related to payoff process.
We can maintain General Control Data for Payoff in IMG
We can also maintain âCondition typesâ, âPossible Payoff reasonâ, âPayment Detailsâ in the SAP IMG screen at the time of PAYOFF.
After payoff the contract will terminated automatically.
Please send us your questions, comments or assistance, and our team would be glad to assist you.
By Manish Agarwal. (on behalf of SAP Consulting Team)
SAP :: Streamlined
WeÂ offerÂ varietyÂ ofÂ servicesÂ includingÂ SAPÂ ECCÂ ,SAPÂ HR,SAPÂ BW,SAPÂ CRM,Â SAPÂ SCM,SAPÂ BPM, BusinessÂ Objects,Â SAPÂ ABAPÂ Development,Â SAPÂ BASISÂ andÂ SAPÂ NetWeaverÂ consulting.Â WeÂ have expertiseÂ inÂ providingÂ implementation,development,Â SAPÂ MigrationÂ andÂ SAPÂ supportÂ servicesÂ to SAPÂ customersÂ acrossÂ diverseÂ industriesÂ atÂ aÂ globalÂ level.
Have a question on SAP? Write to our SAP Architect.
(We promise a no-obligation consulting reply)