Calculation and Posting of Interest
Use
The interest keys and interest calculation rules defined in the Implementation Guide are used as the basis for determining interest in the interest calculation run,
If you have set the
Interest rate fixed in prd
indicator for the interest key, the interest rate that is valid at the start of an interest period is used for the duration of that period.If you set the
Interest calculation in advance
indicator for the interest key, the posting date and the due date for net payment are at the start of the interest period.
The specifications for the interest key for transfer and tolerance days, or for interest calculation on a monthly basis, are not taken into account, unlike for item interest calculation.
Line items and interest supplements are created for the determined interest. This means that every change to the balance or the interest rate requires a new item. If you use graduated interest rates, every amount interval has its own item.
The interest items are rounded. Each rounding difference has its own business partner items. The G/L items that result from rounding are summarized, where necessary. As long as you have made the appropriate settings in the Implementation Guide, you can group interest items together and summarize business partner and G/L items.
As long as the withholding tax code for outgoing payments is populated, and withholding tax is active in the country, a withholding tax line is created. The basis for withholding tax is the total for the rounded interest revenue. The withholding tax line is rounded in the same way as the interest items.
Note
The withholding tax amount in subtransaction maintenance, and the settings in the Implementation Guide for calculating the withholding tax base amount, are not used. Withholding tax supplements are not supported.
Features
If interest is due, a document is posted that contains interest item(s), and withholding tax items and rounding items where appropriate.
Interest supplements are created for the interest items and the associated rounding items.
An entry is written in the interest history for every interest item, and this entry contains the rounded interest amount (without taking withholding tax into account).
Note
If no interest document is posted, as no interest is due, an entry is created in the interest history with the last balance. This means that the interest history has no gaps, and the balance is available for use as the basis for the next interest calculation.