With the Interest Calculation you can calculate interest for open and cleared debit and credit items. It is also possible to calculate interest for installment plans and cash security deposits.

Transactions

Customizing

FICAIMG
>Contract Accounts Receivable and Payable
>Business Transactions
>Interest Calculation

Posting Areas

Further technical information

Package

Function Groups / Programs

Tables

Reports

Function Modules

Message Class

>3

Authorization Objects

F_KKINTER

Archiving Objects

FI_MKKDOC

SAP Consulting Notes

Item Interest Calculation

This component enables you to calculate interest on debit and credit items automatically. Individual items and the business transactions that created them are both included in item interest calculation, which allows you to control precisely whether and how interest can be calculated on an item.

The system calculates interest only on those items for which it is able to determine an interest key. The interest key controls interest calculation and can be assigned to contract accounts, a collateral, individual line items or dunning levels. The system normally determines the interest key for each industry, but can also do so on a customer-by-customer basis.

Interest can be calculated on the following items:

You can calculate interest on debit items when:

You can calculate interest on credit items using the following functions:

To determine the way in which interest is calculated, you can:

During an interest run, the system calculates and posts interest, and creates the required data for correspondence.

To help avoid charging your business partners very small amounts, you can carry out amount checks per customer or industry.

Interest locks enable you to prevent interest from being calculated on certain items. You can also exclude certain business transactions (such as reversal postings or additional receivables for interest calculation).

Interest can be posted so that it is also posted to the general ledger. Debit interest can also be posted as a statistical item (in other words, not posted to the general ledger).

For each interest item, the interest schedule tells you how the interest amount was determined, including source items, interest period and interest rate. This allows you to reconstruct how interest was determined at a later date.

An interest history records the interest calculation period or each line item on which interest is to be calculated. During interest calculation, the selected items and the interest history are considered jointly. This ensures that interest is only calculated for items once for a certain period.

Utilities Industry (IS-U) component

You can store interest keys in the system for transactions. When posting, the system determines the interest key in terms of the transaction specified for the line item and then stores it in the line item.

As in a dunning run, interest can also be determined and posted in invoicing. If you implement the Invoicingcomponent you can include interest on the invoice printout.

Telecommunications (IS-T) component

You can store interest keys in the system for transactions. When posting, the system determines the interest key in terms of the transaction specified for the line item and then stores it in the line item.