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 Determining Interest Periods

Use

An interest period is the period for which an interest document is to be created. In the following interest period, interest becomes due for all interest items that are not excluded from interest calculation.

Prerequisites

You have defined the data for determining interest periods in the master data:

  • Interest calculation base period : Yearly, twice-yearly, quarterly or monthly. The determined periods each begin on the closest dates according to the normal calendar (a year on 1/1, a quarter on 1/1, 4/1, 7/1, and so on). Interest is only calculated fully for a period, meaning that account balance interest calculation is executed up to the end of the last full interest period before the date of issue.

Note Note

If you have not defined a base period in the master data, interest is calculated up to the date of issue.

End of the note.

  • Interest calculation base days :

You can move the start of an interest period by specifying a number of base days, for example a monthly basis period, 14 base days. Interest is then calculated from the 15 th of a month, up to the 14 th of the following month. The number of base days can also be negative. The base days are also used for determining the first full interest period per calendar year. Further periods that begin in the same calendar year are determined by adding months.

  • Interest calculation to: Latest date up to which interest is calculated for the insurance object. An interest document is always produced for this event, even if no interest is calculated/due according to the specified periodicity.

Features

In addition to the settings in the master data, the following specifications are relevant to the determination of interest periods:

  • Date of issue : Interest is calculated up to the date of issue at the latest. If no base period is defined in the master data, interest is calculated up to an including the date of issue.

  • Interest calculation up to date of issue indicator : If the indicator is set, the interest is calculated up to the date of issue, if no interest is due according to the specified periodicity. This interest is logged, but not posted. Interest is calculated up to the interest calculation end defined in the master data, at the latest.

  • Interest posting up to date of issue indicator : If the indicator is set the last interest period is determined in the same way as for the Interest calculation up to date of issue indicator. The interest from the last (started) interest period is not just calculated, but also posted.

Note Note

You can find out how to use this function (for conversion to the Euro, for example) in the mass activity from the OSS note 379001. This option is available to you online during a currency change.

End of the note.

  • Old interest periods : If you make a posting in a period for which interest has already been calculated, the previous interest calculation must be corrected. An entry is written to the clarification table (VVKKICLARIOB). The interest documents that are no longer valid are reversed in the next account balance interest calculation run, and the associated entries in the interest history are deleted. The periods that were produced by the previous interest calculation are then transferred, and the newly created interest documents take the same due dates for net payment. The posting date is also identical, as long as the posting period is still open. If the new period for which interest is to be calculated exceeds the available interest history, appropriate periods are expanded before and after. The first period stored in the interest history is expanded as required.

  • Due date for the item : If no interest calculation took place or a posting was made in a period that lies before the first entry in the interest history, then interest calculation begins with the due date for the first item.

If retroactive accounting is necessary, the entries to be corrected are deleted from the interest history. The corresponding documents are reversed.