Interest key
Definition
Key for determining the factors that influence interest calculation and posting. Interest keys are assigned at item level.
Use
The system calculates interest only on those items for which it is able to determine an interest key. You can assign contract accounts, items, or dunning levels to an interest key. In the case of additional receivables, in the related subtransaction you can define whether a special interest key is to be used.
The system normally determines the interest key for each industry, but can also do so on a customer-by-customer basis. The interest key refers to an interest calculation rule that the system uses to determine the valid interest rate in terms of date and amount. The system determines some of the factors that influence interest calculation using the calculation rule. The system determines the following influencing factors using the interest key:
Influencing factor |
Description |
Tolerance days |
Granted to a customer in the case of overdue items. Interest is not calculated on debit items before the tolerance days have been exceeded. If the tolerance days have expired, the system calculates interest from the original due date. If clearing takes place within the tolerance period, overdue interest cannot be calculated. |
Transfer days |
Consider the time needed for a payment method. Interest is calculated from the date that equals due date + tolerance days. |
Transfer and tolerance days |
If both transfer and tolerance days have been entered for an item, they are considered separately. Example :If one transfer day and five tolerance days are granted, and expire five days after the due date, the interval from the due date + transfer days (exclusively) is considered. If clearing takes place within five days, no interest can be posted. |
Interest frequency |
The interest frequency prevents interest from being calculated on an item after a very short time. Since demanding interest (for example, sending an interest notification) is time-consuming and involves costs, interest is not calculated unless the interest period determined by the interest frequency has expired. The interest frequency is made up of a number field and a time unit. |
SAP recommends summarizing items that the system rounds before the interest calculation (for example, for rounding to complete 100) and subitems before the interest calculation. To do this, set the indicator
Summarize Subitems before Interest Calculation
in the interest key (Implementation Guide for
Contract Accounts Receivable and Payable: Business Transactions
Interest Calculation
Item Interest Calculation
Define Interest Key
). If you also set the indicator
Consider All Subitems for Interest Calculation
, the system automatically selects missing subitems when calculating interest on subitems. This ensures that interest is calculated on the whole amount, even when receivables are split for technical reasons.Event 2085 gives you even further options for summarizing items before the interest calculation.There, for example, you can summarize items and, if you use different interest rates for calculating interest on receivables and payables, use the interest rate for receivables if the amount of receivables exceeds the amount of the payables (see the documentation for the function modules FKK_SAMPLE_2085, FKK_CONDENSE_2085).
Structure
You define interest keys in Customizing (see the IMG structure
Contract Accounts Receivable and Payable
Business Transactions
Interest Calculation
Item Interest Calculation
Define Interest Keys).
Integration
The interest key refers to a valid interest calculation rule for which other influencing factors for the interest calculation are stored.