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 Calculating Deferral Interest Locate this document in the navigation structure

Use

It is possible to calculate deferral interest when deferring an acceptance request.

Prerequisites

You define all the entries required by the program for interest calculation in the Customizing of Funds Management in the interest formula. You can find the corresponding IMG activity, under   Funds Management-Specific Postings   Requests   Additional Details   Define Interest Calculation   . You will also find detailed information on the individual factors of interest calculation.

If you want to control interest by using the interest indicator, you must note the following: The interest rate used to calculate interest for individual items can be specified for each interest indicator. You can define this interest indicator in the Customizing of Financial Accounting , under   Accounts Receivable and Accounts Payable   Business Transactions   Interest Calculation   Interest Calculation Global Settings   Define Interest Calculation Types   . You must also define the corresponding interest rate in the Customizing of Financial Accounting, under   Dunning   Dunning Procedure   Define Interest Rates   .

Features

The program requires the following entries when calculating deferral interest:

  • Interest formula which the interest calculation is based on

    With the interest formula, the formulas that were created in Customizing are displayed as input help.

  • Interest calculation date

    If you do not enter an interest calculation date, the interest calculation starts a day after the due date of the source receivable.

  • Deferral interest on additional receivables

    In the interest formula, you can define that additional receivables should be excluded from the interest calculation.

  • Account assignment which the deferral interest should be posted to

    As soon as you have made entries for calculating deferral interest, a dialog box appears in which you can enter the revenue type or commitment item you want to post the deferral interest to. If you specify the revenue type, the system checks if a commitment item was assigned to the revenue type in the Customizing of the Funds Management component. If this is the case, this commitment item is used. Otherwise the program accesses the commitment item that you have entered in the dialog box. The program derives the G/L account from the commitment item determined, based on IMG activity Define G/L Account Determination, on which the interest items are posted automatically .

The program saves the interest formula in the generated interest document so that the amount of the interest calculated can be reconstructed at any time. When printing out the interest document, the interest formula and the interest calculation date are not printed. However, it is possible to print these entries in customer-specific forms.

Activities

In order to calculate deferral interest for the deferral of an acceptance request, choose   Edit   Generate Interest Items   when entering or editing the deferral request.