Actual Interest Calculation (SAP Library

Actual Interest Calculation

Purpose

The actual interest calculation is a tool you can use in projects or orders which last several years to calculate the interest on the posted costs, revenues, and, where appropriate, payments.

Process Flow

The interest run first selects all the payment and cost line items or totals records which meet the selection criteria you have entered. This is done according to the posting dates for the documents or the payment date from the payment view.

The system determines the relevant value category from the cost element or commitment item in the document.

The interest profile defined in the balancing object controls:

Which value categories (cost elements, commitment items) are included in the interest calculation

Hierarchy Processing and Interest Calculation Control.

The system uses the interest indicator defined in the IMG to determine:

Which interest rate is relevant (detailed interest indicator setting)
Account determination for the update

The system uses these criteria to select the interest-relevant items and calculate interest for them. Ýou can use combinations of interest profiles and interest indicators to keep various value categories apart in the interest calculation. For example, interest on costs, revenues, and payments can be separated in this way. The system calculates the interest. Account determination is per interest indicator.

In the case of an interest calculation on totals records for capital-investment projects, the system does not check the interest relevance of value categories. The interest calculation takes account of all costs, revenues, and payments already capitalized in the asset under construction.

The system generates a source document for each interest posting. The system records the date of the last interest run for each balancing object. Interest amounts are posted on the last day of the selected period.

Depending on the settings entered in Customizing, the balance carried forward is made up of either totals records or line items. The system chooses the line items for the last four periods before the interest run. For periods longer ago than that, the system uses the totals records. For the first interest run, the line items are always used.

This has the following repercussions for line-item archiving:

If you are using the interest calculation based on line items, line items more than four periods old can be archived.
If you are using the interest calculation based on totals records, all line items can be archived.
The first interest run uses the line items. If you have already archived documents before the first interest run, this may lead to an incorrect interest calculation.