What are the steps to configure the interest calculation procedure for vendor /

customers?

INTEREST CALCULATIONS
Balance Interest Calculation – S Type – GL Accounts
Item Interest Calculation - P Type –Customers / Vendors

TC Description and Path Important Fields (Example data for reference only)
Define Interest Calculation
Types (Rate & Method)
IMG -> Financial Accounting
-> General Ledger Accounting
-> Business Transactions -> INT ID NAME TYPE
OB46
Bank Account Interest MA 10% S
Calculation -> Interest
Calculation Global Settings ->
Define Interest Calculation
Types
Prepare Account Balance
Interest Calculation Select New Entries
IMG -> Financial Accounting Interest Indicator MA
-> General Ledger Accounting Interest Calculation Frequency 1(month)
-> Business Transactions ->
OBAA Settlement Day 1(st of every month)
Bank Account Interest
Calculation -> Interest Calendar Type G (28,.., 31/365)
Calculation Global Settings -> Select B Balance Plus interest in the output Report
Prepare Account Balance Save
Interest Calculation
Define Reference Interest
Rates Select New Entries
IMG -> Financial Accounting Reference Effect
Long text Currency
-> General Ledger Accounting From
OBAC -> Business Transactions -> MBDL Int
MBDL_10.00 01.04.94 INR
Bank Account Interest 10.00%
Calculation -> Interest MBDL_8.00 MBDL Int 8.00% 01.04.94 INR
Calculation -> Define Save
Reference Interest Rates
Define Time Dependent SELECT NEW ENTRIES
Terms Seq
IMG -> Financial Accounting Int. Cur Valid Ref. Interest
No. Long text
-> General Ledger Accounting Ind. from Indicator
OB81
-> Business Transactions ->
Bank Account Interest Credit interest:
Calculation -> Interest MA INR 01.04.94 1 balance MBDL_10.00
Calculation -> Define Time interest calc.
 Dependent Terms Debit interest:
MA INR 01.04.94 2 balance MBDL_10.00
interest calc.
Credit interest:
MA INR 01.04.94 3 arrears interest MBDL_10.00
calc.
Debit interest:
MA INR 01.04.94 4 arrears interest MBDL_10.00
calc.
Enter Interest Values You can make new entries and/or change or delete
IMG -> Financial Accounting existing entries. You can use the functions "Copy as",
-> General Ledger Accounting "Undo change", and "Position" to help you make your
-> Business Transactions -> entries.
OB83
Bank Account Interest Activities:
Calculation -> Interest In the view "Reference Interest Rate Values: Overview",
Calculation -> Enter Interest all the existing reference interest rates are shown in a
Values four-column table.
Define Automatic Postings a) Interest Account Dr -> Interest Paid -> 0002
Account To SBI Term Loan Account -> GL Account Paid ->
IMG -> Financial Accounting 2000
-> General Ledger Accounting b) Deposit Account A/c -> GL Account Earnedà1000
OBV2 -> Business Transactions -> To Interest Received Account -> 0001
Bank Account Interest Select Symbol Button,
Calculation -> Interest Posting Keep the cursor on any of the above codes and select
-> Prepare G/L Account A/cs
Balance Interest Calculation Chart of Accounts-MBDL
Give Loan Account No
Interest Calculation Run Give Company Code
Accounting -> Financial Calculation Period 01.04.2094 to 31.03.2095
Accounting -> General Ledger Then Execute
F.52
-> Periodic Processing -> To See Item wise Interest Calculation
Interest Calculations -> Select Back 3 times
Balances Select Additional Balance Line
Execute.
Giving Effect to Floating
Rate of Interest
SPRO -> Financial
Accounting -> General Ledger
OB83
Business Transactions ->
Bank Interest Calculation ->
Interest Calculations -> Enter
Interest Values