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SAP Interest Calculation Configuration

Interest calculation configuration can be done by two methods i.e Interest calculation on account balances and Interest calculation on areas.

Interest calculation configuration steps

Step 1: – Define interest calculation procedure
Step 2: – Prepare account balance interest calculation
Step 3: – Define reference interest rates
Step 4: – Define Time based terms
Step 5: – Enter interest values
Step 6: – Create G/L Accounts
Step 7: – Prepare G/L account balances interest calculation configuration procedure

The following steps describe the calculation of interest.

Step 1: – Define interest calculation procedure

SAP IMG Path: –

SPRO > Financial Accounting > Accounts Receivable & Accounts Payable >Business Transactions > Interest Calculation > Interest Calculation Global Settings > Define Interest Calculation Types

Transaction Code: – OB46

Click on “new entries” and update the following entries

interest calculation types

  1. Enter your interest indicator in the Int ID field
  2. Enter description of your interest indicator
  3. Select interest calculation type .i.e Balance interest calculation type or item interest calculation type

interest calculation types entries

Click on save icon to save the configured data.

Step 2: – Prepare account balance interest calculation

IMG Path: – SPRO > Financial Accounting > Accounts Receivable & Accounts Payable >Business Transactions > Interest Calculation > Interest Calculation Global Settings > Prepare Account Balance Interest Calculation

Transaction code: – OBAA

Click on new entries and update the following entries

Prepare account balance interest calculation

  • Enter your interest calculation indicator
  • Update the period determination i.e interest calculation frequency and settlement day
  • Select appropriate calender type (B- 30/360, G – 28,…,31/365)
  • Select output control for printing form and  terms of payment for postingPrepare account balance interest calculation entries

 Step 3: – Define reference interest rates

Path: SPRO > Financial Accounting > Accounts Receivable & Accounts Payable >Business Transactions > Interest Calculation > Interest Calculation > Define Reference Interest Rates
Transaction Code: – OBAC

Click on new entries and maintain the following entries

Define reference interest rates entries

Enter your reference interest rate key, long text, Description, date from, valid currency of ref.int. rate.

SAP Interest Calculation Configuration

Click n save icon to save the data.

Step 4: – Define Time based terms

Path: SPRO > Financial Accounting > Accounts Receivable & Accounts Payable >Business Transactions > Interest Calculation > Interest Calculation > Define Time-Based Terms.
Transaction Code: – OB81

Choose new entries and update the following entries

Define Time based terms

Enter your interest calculation indicator key in the int.cal.indicator field

Update the fields currency key, Eff. from, sequential number

Select the transaction type from the list

Enter Reference interest rate (Check step 3)

Define Time based terms entries

Choose save button to save the data.

Step 5: – Enter interest values

SPRO > SAP Reference IMG (F5) > Financial Accounting > Accounts Receivable & Accounts Payable >Business Transactions > Interest Calculation > Interest Calculation > Enter Interest Values.
Transaction Code: – OB83

Enter interest values entries

  • Enter the reference interest rate key in the reference field
  • Update the valid from and interest rate percentage

Enter interest values

Click on save icon to save the data.

Step 6: – Create G/L Accounts

Path: – IMG > Financial accounting > G/L Accounting > G/L Accounts > Master Data–> Preparations > GL Account Creation and Processing > Edit G/L Account
Transaction Code: Fs00

Create G/L accounts for Term loan, Interest paid, Interest received, loan

Step 7: – Prepare G/L account balances interest calculation procedure

SAP IMG Path: – 

SPRO > Financial Accounting > General Ledger Accounting > Business Transactions > Bank Account Interest Calculation > Interest Posting > Prepare G/L Account Balance Interest Calculation
 Transaction Code: – OBV2

Click on Accounts button and enter chart of accounts key and press enter to continue

maintain accounts determination

Update the account symbols in the Acct symbol field, G/L Accounts as shown below. After updating the required data click on posting specs

SAP Interest Calculation Configuration

Click on posting specs button, then select edit option and then click on create button and update the following information

maintain accounts determination accounts posting specification

Click on save icon to save the configured data. Successfully you have configured interest calculation in SAP.