SAP Interest Calculation Configuration Interest calculation configuration can be done by two methods i.

e Interest calculation on account balances and Interest calculation on areas. Interest calculation configuration steps Step 1: Define interest calculation procedure Step 2: Prepare account balance interest calculation Step 3: Define reference interest rates Step : Define !ime based terms Step ": #nter interest $alues Step %: &reate '() *ccounts Step +: Prepare '() account balances interest calculation configuration procedure !he following steps describe the calculation of interest. Step 1: Define interest calculation procedure S*P I,' Path: SP./ 0 1inancial *ccounting 0 *ccounts .ecei$able 2 *ccounts Payable 03usiness !ransactions 0 Interest &alculation 0 Interest &alculation 'lobal Settings 0 Define Interest Calculation Types !ransaction &ode: /3 % &lic4 on 5new entries6 and update the following entries

1. #nter your interest indicator in the Int ID field 2. #nter description of your interest indicator 3. Select interest calculation type .i.e 3alance interest calculation type or item interest calculation type

&lic4 on sa$e icon to sa$e the configured data.

Step 2: Prepare account balance interest calculation I,' Path: - SP./ 0 1inancial *ccounting 0 *ccounts .ecei$able 2 *ccounts Payable 03usiness !ransactions 0 Interest &alculation 0 Interest &alculation 'lobal Settings 0 Prepare *ccount 3alance Interest &alculation !ransaction code: /3** &lic4 on new entries and update the following entries

#nter your interest calculation indicator 7pdate the period determination i.e interest calculation fre8uency and settlement day Select appropriate calender type 93- 3:(3%:; ' 2<;=;31(3%">

Select

output

control

for

printing

form

and

terms

of

payment

for

posting

Step 3: Define reference interest rates Path: SP./ 0 1inancial *ccounting 0 *ccounts .ecei$able 2 *ccounts Payable 03usiness !ransactions 0 Interest &alculation 0 Interest &alculation 0 Define Reference Interest Rates !ransaction &ode: /3*& &lic4 on new entries and maintain the following entries

#nter your reference interest rate 4ey; long te?t; Description; date from; $alid currency of ref.int. rate.

&lic4 n sa$e icon to sa$e the data. Step 4: Define Time based terms Path: SP./ 0 1inancial *ccounting 0 *ccounts .ecei$able 2 *ccounts Payable 03usiness !ransactions 0 Interest &alculation 0 Interest &alculation 0 Define !ime-3ased !erms. !ransaction &ode: /3<1 &hoose new entries and update the following entries

#nter your interest calculation indicator 4ey in the int.cal.indicator field 7pdate the fields currency 4ey; #ff. from; se8uential number Select the transaction type from the list #nter .eference interest rate 9&hec4 step 3>

&hoose sa$e button to sa$e the data. Step : !nter interest "alues SP./ 0 S*P .eference I,' 91"> 0 1inancial *ccounting 0 *ccounts .ecei$able 2 *ccounts Payable 03usiness !ransactions 0 Interest &alculation 0 Interest &alculation 0 Enter Interest Values. !ransaction &ode: /3<3

#nter the reference interest rate 4ey in the reference field 7pdate the $alid from and interest rate percentage

&lic4 on sa$e icon to sa$e the data.

Step #: Create $%& Accounts Path: - I,' 0 1inancial accounting 0 '() *ccounting 0 '() *ccounts 0 ,aster Data0 Preparations 0 ') *ccount &reation and Processing 0 #dit '() *ccount !ransaction &ode: 1s:: &reate '() accounts for !erm loan; Interest paid; Interest recei$ed; loan Step ': Prepare $%& account balances interest calculation procedure S*P I,' Path: SP./ 0 1inancial *ccounting 0 'eneral )edger *ccounting 0 3usiness !ransactions 0 3an4 *ccount Interest &alculation 0 Interest Posting 0 Prepare '() *ccount 3alance Interest &alculation !ransaction &ode: /3@2 &lic4 on *ccounts button and enter chart of accounts 4ey and press enter to continue

7pdate the account symbols in the *cct symbol field; '() *ccounts as shown below. *fter updating the re8uired data clic4 on posting specs

&lic4 on posting specs button; then select edit option and then clic4 on create button and update the following information

&lic4 on sa$e icon to sa$e the configured data. Successfully you ha$e configured interest calculation in S*P.