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 Interest Calculation Rule

 

Key that defines the rules for calculating interest, and which the system uses for determining all factors that influence interest calculation.

 

You assign interest calculation rules to interest keys.

Interest rules can refer to a reference interest rate.

Structure

You define interest calculation rules in Customizing for Contract Accounts Receivable and Payable under Start of the navigation path Business Transactions Next navigation step Interest Calculation Next navigation step Item Interest Calculation Next navigation step Define Interest Calculation Rules End of the navigation path. You define date-dependent and/or amount-dependent interest rates for an interest calculation rule. You can also calculate interest on the basis of whole months. Or interest calculation rules can refer to a reference interest rate. Other influencing factors are:

  • Interest calculation method

    The interest calculation method is defined by the DAYS/DAILY BASIS quotients and as a factor of the percentage calculation leads to an interval-based percentage calculation. For example, you can define a year with 360 days (banking calendar) or 365/366 days (Gregorian calendar) as a daily basis. The days relevant to the interest calculation would then be determined according to the banking calendar (30 days in each month) or the current calendar (the actual number of days).

  • Graduated interest calculation

    You can calculate interest on a scale.

  • Interest interval

    The defined interest rate is a yearly, monthly, weekly, or daily interest rate.

  • Rounding for interest calculations

    You can round the amount to be used for calculating interest before the actual interest calculation. You define rounding rules in the interest conditions for the interest calculation rule in Customizing for Contract Accounts Receivable and Payable under Start of the navigation path Business Transactions Next navigation step Interest Calculation Next navigation step Item Interest Calculation Next navigation step Define Interest Calculation Rules End of the navigation path.

    In event 2075, you can round the result of the interest calculation up or down. If you process the function module FKK_ROUND_INT_AMOUNT in event 2075, you can round interest calculated with the function module FKK_INTEREST_CALC according to values defined in Customizing (see Customizing for Contract Accounts Receivable and Payable under Start of the navigation path Basic Functions Next navigation step Postings and Documents Next navigation step Basic Settings Next navigation step Define Rounding Rules for Currencies End of the navigation path).

    If you process the function module FKK_SAMPLE_ROUND_2040 in event 2040, the interest is not rounded until the line items have been created for the interest document to be posted and the interest items have been summarized.

    With a function module processed in event 2092, you can determine the number of days for which you do not calculate a supplement to the reference interest rate for your customers.