Interest Calculations
Balance Interest
calculation Item
interest calculation
S Type P
Type
GL Account Vendor
/ Customers
Define interest calculation type:
Path
: SPRO- Financial accounting – General ledger accounting- Business transactions
– Bank account interest calculation – Interest calculation Global settings –
Define interest calculation types
Interest
indicator :
G1
Name :
10% Monthly
Interest
calculation type : Select
S
Balance
interest calculation
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enter to save in your request
Prepare account balance interest calculation:
Path
: SPRO- Financial accounting – General ledger accounting- Business transactions
– Bank account interest calculation – Interest calculation Global settings-
prepare account balance interest calculation (Tr.Code OBAA)
Select
new entries button
Interest
calculation indicator :
G1
Interest
calculation frequency :
Select 01
Calendar
type :
Select G (28 31/365)
Select
balance plus interest check box
Save
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enter to save in your request
Calendar Type
In case of rupee loans we
use G Calendar In case of foreign
currency loans we
use F calendar.
FC Loan from SBI LIBOR +2%
(LIBOR Mean London
For interest calculations the denomination will be always 360 days
FIBOR – Frankfurt Inter Bank Offer
Rate
MIB - Mumbai Inter Bank Offer Rate
Define Reference Interest Rates:
SBI rupees term loan 10/04/2008 100000
10/09/2008 10000
Interest calculation for
the year
1st method
On 100000 from 10/04/2008
to 31/03/2009 at 10% 15000
On 100000 from 10/09/2008
to 31/03/2009 at 10% -3000
--------
12000
2nd Method
On 10000 from 10/04/2008
to 09/09/2008 at 10% 5000
On 90000 from 10/09/2008
to 31/03/2009 at 10% 7000
------
12000
=====
If the account is having
credit balance 10%
If the account is having
debit balance 8%
Loan account – Interest indicator Account Credit balance
reference interest rate : G2-10%
Account
debit balance reference interest rate G3-8%
A) Interest
rates are given to reference interest rate (G2 and G3)
B) Reference interest rates are specified separately
if there is a credit balance and if there is a debit balance and it will be
assigned to interest indicator
C) Interest indicator will be specified in loan
account.
Define reference interest rates:
Path
: SPRO – Financial accounting – General ledger accounting – Business
transaction –Bank account interest calculation – Interest calculation –Define
reference interest rates (Tr code is OBAC)
Select
new entries button
Ref
int.rate : G2
Long
text :
Credit balance 10% interest
Description
also credit balance 10% interest
Date
from :01.04.2008
Currency : INR
Save
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enter to save in your request
Select
next enter button
Ref.int.rate
: G3
Long
text :
Debit balance 8% interest
Description
: Dr. Bal 8%
int
Date
from :
01.04.2008
Currency
: INR
Save
Define Time – Dependent Terms
Path
: SPRO – Financial accounting – General ledger accounting – Business
transaction – Bank account interest calculation – Interest calculation- Define
time – Dependent Terms
Select
new entries button
Interest
calculation indicator :
G1
Currency
key :
INR
Effective
from :
10.04.2008
Sequential
number :1
Terms :
Select credit interest balance interest
calculation
Ref.interst
rate :
G2
Save
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enter to save in your request
Select
next entry button (F8)
Interest
calculation indicator :
G1
Currency
key :
INR
Effective
from :01.04.2008
Sequential
number :2
Term :
Select debit interest balance interest
calculation
Reference
rate :
G3
Save
Enter Interest Values
Same path as above (Tr code is OB83)
Select
new entries button
Reference
interest rate :
G2
Valid
from :
01.04.2008
Interest
rate :
10 (one month)
Reference
interest rate :
G3
Valid
from :
01.04.2008
Interest
rate :
8
Save
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enter to save in your request
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