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Function documentationInterest Calculation  

 

During an account settlement, the system determines the interest for each account and for each settlement period for an interest calculation period.

Interest calculation consists of three parts:

  • Determine the conditions valid for a settlement period

  • Determine the various balances that are based on the conditions

  • Calculation, meaning transfer of the conditions and balances to Financial Mathematics (FIMA) and formatting of the results

The result of the interest calculation is transferred to settlement control.

Prerequisites

You have made the following settings in Customizing:

  • You have defined condition types for settlements that are based on the condition category 105020 Settlement Interest. In the Calculation Base field, you have defined the basis on which you want interest calculated, such as debit balance and credit balance, for each condition type. You make the settings for the condition type in Customizing under Start of the navigation path Account Management (FS-AM) Next navigation step Product Management: Financial Conditions Next navigation step Define Condition Type End of the navigation path.

  • You have set an interest calculation period in an account product under Start of the navigation path Account Management (FS-AM) Next navigation step Product Management Next navigation step Product Definition Next navigation step Account Products Next navigation step Create Account Product End of the navigation path, under the feature attribute Start of the navigation path Settlement Next navigation step Time Periods Next navigation step Interest Calculation Period End of the navigation path.

  • The account you want settled is based on the account product defined above and has conditions for settlement interest.

Features

Financial Calculator

Calculation takes place in the Financial Calculator. The calculation results for the settlement are supplied on the basis of a balance list. The system carries out the following steps:

  • Determine the conditions for the account (condition merger)

  • Read the balances

  • Account determination

  • Call the BAdI PROVIDE_CONDITIONS from the Enhancement Spot BCA_SETTL_CALC to transfer the effective conditions

  • Call Financial Mathematics The interest is calculated and returned on the basis of the balances, interest calculation periods, and conditions supplied by Account Management.

  • Format the results in Account Management and transfer to settlement control.

If it is necessary to make postings to a prior period and recalculate the period because of value dates in the past, the system begins with the prior period. The above-mentioned steps are run again for the follow-on periods.

Capital Yield Tax

If credit interest has been calculated for an account and the Determine Capital Yield Tax indicator is selected for the account, the account-managing system transfers the credit interest incurred to a capital yield tax system, which calculates the capital yield tax. For more information, see Calculation of Capital Yield Tax.