Interest Calculation Process in SAP

First the program identifies the items on which Interest calculation is to be calculated according to the rules defined in the interest indicator, and any additional specifications you make when executing the program. The rules you enter determine the items and transaction for which Interest can be calculated.

Interest Calculation Process in SAP

1. Define terms of payments:

T.code: OBB8
path: IMG =>fin. accting=>AP AR=>Business transactions=>outgoing invoice and credit memo=> maintain terms of payment

2. Define Interest Cal indicators / type:
T.code: OB46
path: IMG=>fin. accting=>AP AR=>Business transactions=>interest calculation global settings=>define interest cal types
Here in int cal type select ‘p’ for int cal on line items

3. Make Interest Indicator Available to Interest Run

Program:
T.Code: OB82
path: IMG =>fin. accting=> AP AR=> Business transactions=>interest calculation global settings=> prepare int. on arreas


4. Create Reference Interest Rate:
T.code: OBAC
path: IMG =>fin. accting=> AP AR=>Business transactions=> interest calculation=> interest calculation=> define reference interest rate

 

5. Assign interest indicators to ref. int rate 
or define time dependant terms:
T.code: OB81
path: IMG =>fin. accting=>AP AR=> Business transactions=> interest calculation=>interest calculation=>define time dependant terms
Here in sequence # always use 1 for line item interest


6. Interest calculation account assignment:
Here we will mention how and which accounts the interest program should post.

T.code: OBV1
path: IMG =>fin. accting=>AP AR=>Business transactions=> interest calculation=>interest posting =>prepare interest on arreas calculation (customers)

Also See: What is General Ledger Planning in SAP?

Recommended Reading For You

  • SAP Clearing in Local CurrencySAP Clearing in Local CurrencySAP Clearing in Local Currency Transaction OBY6 Effect of clearing in Local currency : Purchase USD 1000 at 1 USD = 2 SGD.The accounting entry in Local Currency […]
  • How duplicate invoice check works – SAPHow duplicate invoice check works – SAPIn SAP FI module, when checking for duplicated invoices, the SAP system compares the following:Vendor Currency Company code Gross amount of the invoice Reference document […]
  • What is Alternative Payee in SAP?What is Alternative Payee in SAP?The Alternative Payee in SAP can make payment to a vendor other than the one to which the invoice was posted. The payment is made to an alternative payee, which must be specified in the […]
  • What is Invoice Verification in the SAP System?What is Invoice Verification in the SAP System?The SAP system is made up of several components linked together so that different departments within a company can cooperate with one another. The Invoice Verification component is part of […]
  • SAP Billing Process an OverviewSAP Billing Process an OverviewSAP Billing Process: The purpose of SAP Billing represents the final processing stage for a business transaction in Sales and Distribution. Information on billing […]

Leave a Reply

Your email address will not be published. Required fields are marked *

%d bloggers like this: