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 Interest Rate

Definition

See Modifying Interest Rates .

Use

In Turkey , the Inflation Adjustment of Monetary Items report uses an interest indicator to calculate the inflation on monetary items. Once you have defined the interest indicator, you have to define a corresponding interest rate with the inflation rate.

Structure

Maintain the interest rate as follows:

  • Int. calc. indicator (Interest calculation indicator)

    Enter the interest indicator.

  • Currency key

    Enter TRY (Turkish liras).

  • Valid from

    Enter the date from when this inflation rate is valid.

  • Sequential number

    Leave this field blank.

  • Term

    Enter Credit interest for days overdue.

  • Reference interest rate

    Leave this field blank. The inflation rate is calculated using the entry in the Premium field only.

  • Premium

    Enter the inflation rate as a percentage.

  • Amount from

    Leave this field blank, because there is no lower limit for which monetary items are to be adjusted.