Process steps for project Interest calculation in SAP PS.

[Dushyant2729]

This blog will show how we can perform different processing steps to calculate interest in SAP PS.

Here, I am using the same configuration steps that I posted in my previous blog, End to end Configuration for Project Interest calculation 

In this blog, I am covering both the annual and monthly interest calculation processes. 

Testing of Configuration

Annual compound Interest setup  

Create project (CJ01)

 Create vendor Invoice on Level 2 WBS (FB60)

Posting in April

Project Cost report (CJI3)

 

Now we will Run Interest calculation for April month (CJZ2)

Formula for Interest Calculation = (rate of Interest/365) *(No of days) *(Total Balance in Particular month)

Project Actual Cost report.

Total Interest calculation

Rate of Interest = 10%

No of days = 30 (April month)

Total Cost = 10000 euro

Interest calculated = (0.1/365) *30*10000

                                    = 82.19 EURO           

What if we calculated Interest in may Month?

Additional 10000 EURO Cost posted on WBS in may month

Let’s calculate Interest Again for may month (CJZ2)

 

Total Interest calculation

Rate of Interest = 10%

No of days = 31 (May month)

Total Cost = 20000 euro (excluded already posted interest cost as we are using annual compound)

Interest calculated = (0.1/365) *31*20000

                                    = 169.86 EURO        

Monthly compound interest

Let’s Change Compound Interest period to monthly in (OPIB)

Let’s run the process again on new WBS element

New project CJ01)

Post a vendor invoice in April month

Project Actual Cost report (CJI3)

Let’s run the Interest calculation Again (CJZ2)

Actual Cost report (CJI3)

Total Interest calculation

Rate of Interest = 10%

No of days = 30 (April month)

Total Cost = 10000 euro

Interest calculated = (0.1/365) *30*10000

                                    = 82.19 EURO

What if we calculated Interest in may Month?

Additional 10000 EURO Cost posted on WBS in may month

Project Actual Cost report (CJI3)

Let’s run the Interest calculation Again (CJZ2)

Project actual cost report (CJI3)

Total Interest calculation

Rate of Interest = 10%

No of days = 31 (May month)

Total Cost = 20082.19 euro (included already posted interest cost as we are using monthly compound)

Interest calculated = (0.1/365) *31*20082.19

                                    = 170.56 EURO        

We can utilise all of these process steps to calculate interest in SAP project system. Please comment with any suggestions or corrections for the post, and I will update.

I appreciate your time spent reading my blog.

Regards

Dushyant Singh