Calculating Interest
A report program is available which calculates the interest from your G/L accounts managed on a line-item basis. It generates a G/L account interest scale. You can use the balance interest calculation to, for example:
Check the interest calculated by your bank.
Update interest calculation data in G/L master records
Post interest received or paid.
A batch input session is created for these tasks.
Interest calculation is controlled by data in the account master record. This data includes the interest indicator and data for determining the calculation period.
The following master record fields are relevant to the interest calculation.
Interest indicator The most important specifications for interest calculation are stored under this indicator, including the interest rates and the rules the system uses to calculate interest.
Interest calculation frequency
In this field, you enter the number of months of the period in which interest is to be calculated. This is, however, only necessary if you want to have the calculation period determined automatically. The system always determines the calculation period by referring to the key date of the last interest calculation. You can also store the interest calculation frequency under the interest indicator. The entry made in the master record takes precedence.
Key date of last interest calculation
In this field, the interest calculation program enters the upper limit of the calculation period after you calculate interest using batch input. The system uses this date for automatically determining the calculation period for an account.
Date of last interest calculation
Here, the program enters the CPU date of the last interest run. This date is only needed for determining value dates in the past.