Interest Calculation 

Use

The interest calculation is an important feature of long-term projects. The SAP System offers a tool for calculating planned and actual interest. Use of the planned interest calculation improves the quality of your planning. The actual interest calculation calculates the interest on posted costs, revenues, and, where appropriate, payments. Both the planned and actual interest calculations calculate the interest on balances.

The following data is included in the planned interest calculation:

Planned interest is recorded:

The following data is included in the actual interest calculation:

You can choose whether the actual interest is recorded by period or to the day.

Integration

The system calculates interest for statistical WBS elements and posts it in the balancing object . That is, the update is not statistical.

Interest is calculated in the controlling area currency. The transaction currency for the interest calculation is identical to the controlling area currency.

If settlement is to an irrelevant CO object, such as cost centers, the credit from settlement is not included in the interest calculation. However, if interest is calculated on the debit to the settlement receiver, it is also calculated in the balancing object.

The graphic below illustrates the role played by the interest calculation in the elimination of internal business volume.

Prerequisites

For a project to be included in the interest calculation, the following conditions must be met:

Settings in the Implementation Guide (IMG) for Controlling or the Project System:

For more information on the settings, read the documentation in the Project System/Controlling Implementation Guide (IMG).

User Status

The user status must allow the following transaction:

Interest profile
You must enter an interest profile in the control data for the project, WBS element, or order.

In the case of a project or WBS element, you can do this in one of the following ways:

Enter a default value in the project profile used in the project definition.

Enter the profile in the control data for the relevant project definition or WBS element.

In the case of orders, you can enter the interest profile in the model order or directly in the master data for the relevant order.

If you have entered interest calculation conditions in the interest profile, such as threshold values, the system checks these as part of the actual interest calculation run. The check is controlled by the interest profile for the balancing object.

Features

The interest calculation (planned and actual) has the following functions:

A balancing object is a CO object, such as a WBS element, in which costs, revenues, and payments are summarized, interest is calculated for them, and they are posted.

The functions and processing logic are largely the same for both the planned and actual interest calculations. No separate settings are necessary in the IMG.

Activities

You can run the interest calculation in the following ways:

Here, you select a single object, and the hierarchy subject to it, for processing in the interest run.

In collective processing, you can run the interest calculation for more than one object. You can only start collective processing by means of variants.

For more information on how the interest calculation runs, see Actual Interest Calculation. The planned interest calculation follows the same procedure. Details of the differences can be found in Planned Interest Calculation.

You use the interest profile to determine whether a balancing object takes part in the interest calculation. The interest profile controls the formation of balances in the hierarchy.

The system always cancels the most recent interest run and, in the actual interest calcualtoin, dates the leveling postings as of the last day in the period you specify. Alternatively, you can specify postings to the the day.

In the planned interest calculation, all the interest postings for the specified interest period are canceled.

If the balancing object is a billing element, you must cancel all interest runs before moving the billing element.

Hierarchy changes do not significantly affect the planned interest calculation.

See Taking Account of Changes in the Hierarchy

Maintain separate control data for the interest calculation in different value categories

The customer enhancements are available for both the planned and actual interest calculations. In the case of the planned interest calculation, you can also use enhancements to control the finish date. For more information on settings and customer enhancements, read the documentation in the Project System IMG.