Interest Calculation (SAP Library

Interest Calculation

Use

The SAP system calculates the interest that incurs for a loan in accordance with the specifications that you have made in Customizing for the relevant loan type.

Prerequisites

In Payroll Customizing, you have defined the following:

Value date

You have specified at which point in time interest on loans should be calculated in your enterprise, under Loans ® Calculation ® Adjust Value Date. In the standard system, interest is calculated at the end of the payroll period.

Interest rate and interest calculation frequency

In the Conditions view under Loans ® Master Data ® Maintain Loan Types, you have specified the amount and the intervals at which interest should be due.

If you want to award an interest-free company loan, create your own condition with debit interest of 0% for this purpose.

Interest calculation method

You have the following options for determining the interest calculation method:

Under Loans ® Calculation ® Specify Interest Calculation Method , you can change the standard interest calculation method provided by SAP using the INTLO feature (HR Loans: Interest Calculation Method). In the process, you can specify an interest calculation method for your whole system, for certain loan types or certain loan conditions. The standard interest calculation method assumes there are 30 interest days in a month and 360 interest days in a year.

We recommend this procedure.

You can specify the interest calculation method for a certain loan condition in the Conditions view, under Loans ® Master Data ® Maintain Loan Types. If you specify an interest calculation method here, you thus override the interest calculation method that you may have entered in the INTLO feature.

Reference interest rate

You have the following options for determining the reference interest rate:

You can use the REFIN payroll constant (Reference interest rate) in table T511K (Payroll Constants) to store the reference interest rate for your whole system, under Loans ® Calculation ® Check Payroll Constants.

We recommend this procedure.

You can specify the reference interest rate for a certain loan condition in the Conditions view, under Loans ® Master Data ® Maintain Loan Types. If you specify a reference interest rate here, you thus override the reference interest rate that you may have specified with the REFIN payroll constant.

If you specify the interest calculation method and the reference interest rate with the INTLO feature and the REFIN constant, you may possibly want to prevent entries being made in the step Maintain Loan Types. That is why, you can hide these fields from the Conditions view. To do so, choose Loans ® Master Data ® Adjust Screen Control in Payroll Customizing.

Scope of Function

The date that you choose for the interest calculation of loans depends on the payment date of your payroll areas. The payment date can, for example, be at the beginning or end of the payroll period. Interest should also be calculated accordingly for an employee’s loan; that is, at the beginning or end of the payroll period.

If you pay an employee’s loan with the payroll run, the time of interest calculation has the following effects:

If interest is calculated at the start of the period, interest is due in the payroll period in which you create the loan. The number of days for which interest is calculated depends on the calculation method that you choose for your system. In the standard system, interest is calculated for 30 days for each month.

If interest is calculated at the end of the period, no interest incurs for the payment amount in this payroll period.

This case has already been created in the standard system.

Interest calculation for external payments, such as payments by check or bank transfer is for the exact day. Within the current payroll period, interest is calculated for only the days on which it actually accrues.

During the payroll run, the system calculates the interest for each payroll period and includes it, when due, as a deduction in accordance with the loan conditions.

Activities

If you create a loan in the Loans infotype (0045), choose a loans condition on the Conditions tab page. With that, you specify the rate of interest and calculation frequency for this loan. The conditions that you can select here depend on the loan type. You can specify an interest rate in the Individual interest rate field, which should apply for this employee.

You can also hide the Individual interest rate field from the infotype interface.

To display the conditions for a loan type in a detailed form, choose the function (conditions overview) on the Conditions tab page.