Interest Calculation
In this section, you make the settings for the plan and actual interest calculation.
For the interest calculation on projects, internal orders, capital investment orders, plant maintenance orders, and service orders not referencing projects, you stipulate the:
- Interest indicator and interest calculation type
The interest
calculation on projects and orders not referencing projects uses only the
balance interest calculation. That is, a balance is calculated for the cost or
payment line items and the interest calculation is then based on this
balance.
- General and time-dependent conditions for an interest indicator (for example, the interest rate)
- Interest profile
- Interest profile and hierarchy processing
You assign the
interest indicator to an interest profile and a currency and determine the
rules for the interest calculation, and, if necessary, parameters for
calculating compound interest.
You define the
interest profile in the profile data for one of the following:
- Standard project definition
- Project definition
- WBS elements
For internal orders,
you define the interest profile in one of the following:
- Model order
- Master data for the relevant order
- Value categories
The interest
calculation is based on accounts/cost elements or commitment items. You store
cost elements or commitment item intervals as value categories.
More information- Interest relevance
With the interest
relevance, you determine for an account assignment group whether an interest
calculation is:
- Carried out for the costs line item
- Carried out for the payment line item (not internal orders) is carried out
- Not carried out
Since the interest
accounts/cost elements are assigned, you also control here whether or not
interest is paid on interest during an interest run, that is, whether compound
interest is calculated.
- Period control for the calculation of compound interest
The period control
to determine compound interest is relevant for investment projects only.
In capital investment projects or orders, you can stipulate when compound interest is to be calculated (for example, quarterly).
In capital investment projects or orders, you can stipulate when compound interest is to be calculated (for example, quarterly).
- Customer enhancements
The following
customer enhancements are implemented for the interest
calculation:
- Line item table modification
- Line item relevance check
- Interest result