Interest calculation

[Former Member]

Hello all,

How we calculate Interest calculation for cwip Assets.

[Former Member]

Hello

Presume Investment Management is active.

Therefore, the SAP IM component makes it possible to calculate interest automatically. You can also capitalize the interest differently in different depreciation areas on the asset under construction. However, you can only calculate interest for investment measures that are managed as projects (not orders).

You make the system settings for this in Customizing for the Project System. Choose Project System ® Costs ® Automatic and Periodic Allocations ® Interest Calculation.

If you only need interest for management accounting purposes (not for capitalization), you can use the corresponding functions in the Asset Accounting (FI-AA) component. There you can calculate interest for the asset under construction belonging to an investment measure. This calculation takes place during the calculation of depreciation, using an appropriate interest key. You can then make account assignment of this interest to an interest account and to a CO receiver, usually a cost center.

Check Interest indicators and profiles

For more infor check the link below in SAP Library.

http://help.sap.com/erp2005_ehp_02/helpdata/en/2a/f9f672493111d182b70000e829fbfe/frameset.htm

Rgds

Suresh

[Former Member]

Hi, Try this way. 1) Enable Interest calculation in a depreciation area(OBAZ) 2) Assign accounts for interest calculation(AO98) 3) Set post interest flag(OAYR) Trust this helps much! Cheers!