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 Balance Interest Calculation Run

Use

You use the mass activity to execute balance interest calculation for a defined number of insurance objects (deposit contracts) with balance interest calculation.

Prerequisites

  • You have made the settings in the Implementation Guide that are required for insurance objects with balance interest calculation and accounts, for which the Contains deposit contracts indicator is set.

  • You have configured interest keys and interest calculation rules in the Implementation Guide.

  • You have made the settings in the master data for the contract accounts and insurance objects, as outlined in the section entitled Balance Interest Calculation for Insurance Objects.

  • Credit/loans on which interest is to be calculated exist for insurance objects in this category.

Features

For interest calculation for an insurance object, all items that exist and were actually posted for the analyzed combination of business partner, contract and currency are selected. The basis for balance interest calculation is always the balance from all items posted to an insurance object with balance interest calculation.

  • If no balance 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 balance interest calculation has already taken place, interest is calculated on the basis of the last valid balance in the balance interest calculation history.

The interest periods are determined on the basis of the master data for the insurance objects, and using the selection criteria in the mass activity (see Determining Interest Periods ).

Note Note

If you post items to an insurance object with balance interest calculation in a period for which interest has already been calculated, interest is recalculated for the period with the updated balance in the next balance interest calculation run. You can find more details in the section entitled Determining Interest Periods

End of the note.

That date from which an item goes to the balance is read from the value date for the G/L item. If this is empty, the due date for net payment for the subledger item is used. Only those items whose due date lies within the period for interest calculation, or that originate from the interest document for the last valid interest period, are required.

The total for the interest amounts is then written to a table (VVKKISUMIOB), for each run, interval, company code, G/L account and currency. This table is also available in the simulation. This means that you can calculate interest on a yearly basis, and create values on a monthly basis for Controlling.

Activities

To start the interest run, choose Start of the navigation path Periodic Processing Next navigation step For Contract Accounts and Insurance Objects Next navigation step Balance Interest Calculation Next navigation step Balance Interest Calculation Run End of the navigation path in the Collections/Disbursements menu.

Note Note

To execute balance interest calculation online, choose Start of the navigation path Account Next navigation step Process Insurance Objects with Balance Interest Calculation End of the navigation path in the Collections/Disbursements Menu.

End of the note.