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Interst calculation of Accounts receivable.

Former Member
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Hi,

Kindly provide the configuration stepsl for the Interst calculation of Accounts receivable.

Points will be assigned.

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Answers (2)

Answers (2)

Former Member
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Kindly send me with screenshot.

Former Member
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Hello,

Interest calculation :-

Define Interest Calculation Types:-

In this step, you create your interest indicators and determine whether they are to be used for the item interest calculation or account balance interest calculation.

Activities:-

1. Create the required interest indicators.

2. Make sure an interest indicator is entered in the master records of the required accounts.

Interest Calculation Type:-

Decides whether the interest indicator participates in the calculation of interest on arrears (per item) or in the account balance interest calculation (interest scale).

Define Number Ranges for Interest Forms:-

In this activity you create number ranges for interest forms by:

u2022 Specifying an interval of numbers to assign to the interest forms.

u2022 Selecting the type of number assignment (internal).

The system assigns a unique number from the number range interval.

Once you post an interest document, the number of the form is stored in the "Reference" field.

Activities:-

Create a separate number range with internal number assignment for interest calculation.

Prepare Interest on Arrears Calculation:-

In this step you make general specifications for each interest indicator for the calculation of interest on arrears. To do this, you make specifications for the selection of items as well as for calculating interest. You can make further specifications as to the subsequent processing of interest, output control and for posting.

Activities:-

Make your specifications for each interest indicator and make the required specifications.

Calendar type

The calendar type determines how many interest days per month and year are used as a basis for calculating interest on financial investments. The number of days in the year is used as the divisor for the interest rate to calculate the daily interest rate from the annual interest rate.

u2022 B - 30/360

(1 year = 360 days, 1 month = 30 days)

u2022 F - 28,..,31/360

Prepare Item Interest Calculation

In this activity you make the general settings for the individual interest indicators for the item interest calculation (report RFINTITAR). These include settings for selecting the items and for calculating the interest. You can also enter specifications for interest post processing, output control, and for posting.

In this activity, you generally make the same settings as in the previous activity, Prepare Calculation of Interest on Arrears. Changes that you make there have an effect here, and vice versa.

An exception to this is the specification that in the item interest calculation, cleared items are not to be considered in the interest run. If you make this specification here, in Prepare Calculation of Interest on Arrears, you will see that interest is calculated on either all items cleared or only items cleared with payment; these conflicting specifications have no effect on the settings you make here.

Activities:-

Here you define all of the settings relevant for the require interest indicator.

Define Reference Interest Rates:-

You define your reference interest rates by entering a key and a mnemonic name. All other fields are purely informative.

Activities

1. Define your reference interest rates.

2. Specify the interest rates for the reference interest rates in the "Enter interest values" step.

Define Time-Based Terms

You specify how the system determines an interest rate for each interest indicator. You can make these settings based on the currency and a validity date. Each entry is assigned a term that determines the type of interest that is calculated (debit or credit interest).

You also specify the interest rates that you want to use. You can:

u2022 Specify a reference interest rate for which the interest rate is defined.

u2022 Specify the required interest rate directly in the Premium field without specifying a reference interest rate.

u2022 Specify a reference interest rate and an interest rate in the Premium field. The interest premium is added to the reference interest rate during interest calculation.

u2022 You can graduate interest rates by specifying an amount in the Amount from field.

Activities

1. Make the required specifications for each interest indicator.

2. After having specified a reference interest rate, ensure that it is defined in the following steps.

Sequential number

The sequential number is required to define staggered, amount-dependent interest rates. Keep in mind that the same "Valid from" date is used for staggered interest rates. In addition, an entry with an "Amount from" of 0 is required.

Examples

Int.ind. Currency Valid from Seq.no. ... Amount from

01 USD 01/01/1996 1 0

01 USD 01/01/1996 2 1000

01 USD 01/01/1996 3 50000

Enter Interest Values

You specify the required interest rates dependent on the date for the reference interest rates.

Activities

Specify the interest rates for your reference interest rates.

A/R: Calculation of Interest on Arrears

The account determination is carried out via the posting interface of application 0002 (interest on arrears). The following specifications are necessary:

u2022 Account determination keys and posting details:-

First you determine which account determination keys are used. For the business transaction account determination key, 1000 (interest earned) and 2000(interest paid) should be entered. The other account determination keys (company code, interest indicator, business area) are optional. You use them if you want to define interest posting in more detail.

For every combination of the account determination keys, you specify a debit posting key, a credit posting key and account symbols (posting details). You use the account symbol 1000 for the customer posting. It is not necessary to specify an account since the posting is made to the customer account. You do, however, have to specify the posting keys.

u2022 G/L accounts:-

For each G/L account symbol, you specify the account allocation for interest earned and interest paid in full. You can differentiate the account specifications according to currencies.

Activities:-

Make the necessary specifications for posting the interest.

Regards

Ravi

Former Member
0 Kudos

Hi Ravi,

Ur configuration steps was gud. But if u can send the screen shot it will be better.

I will also assign points after that.

Thnx