Adjustment of Interest-Bearing Accounts
This process describes how you can adjust for inflation interest-bearing accounts (in the SAP System, G/L accounts with interest indicators) so that any interest earned is reduced to reflect the general inflation index.
In addition to the usual settings required for adjusting a G/L account, you must also bear in mind the following:
To do so, you run theinterest calculation program as normal. The program calculates the interest accrued and posts it to the interest receivable and interest earned accounts that you have defined in the program's Customizing settings.
You do so using the Inflation Adjustment of G/L Accounts program. This calculates the inflation on all accounts, using the general inflation index, and transfers the inflation from the interest earned account to the general inflation gain or loss account.
You have a bank account with a balance of UNI 100,000. The interest rate is 10%, and the general inflation rate is running at 3%.
This effectively reduces the interest earned from UNI 10,000 to UNI 7,000.