Specifications Stored Under the Interest Indicator (SAP Library

Specifications Stored Under the Interest Indicator

The interest indicator controls interest calculation. The following data is stored in the system under the interest indicator:

The calendar type used for defining the days due for interest. You can choose between the bank, French, Japanese, and Gregorian calendars

Interest rates and conditions (see Modifying Interest Rates)

Form for the lists

You can also specify under the interest indicator that the program should use an interest calculation numerator to calculate the interest. Otherwise, the program calculates the interest directly.

Note that, under certain circumstances, no interest is calculated for an account:

If a maximum amount is specified under the interest indicator, an interest scale is only displayed if the interest amount calculated exceeds this.

If you have specified under the interest indicator that no credit interest payments should be made, interest is only calculated if the account is in debit.

The account must be specified for interest calculation either in the interest calculation period which you specified or that determined by the system. For information on this, read Determining the Interest Calculation Period.

In general, all the specifications regarding interest calculation are made during the configuration of your system. You can find more information on this topic in the General Ledger IMG under "Bank Account Interest Calculation".