Interest calculation

[Former Member]

Hi Gurus,

please clarify my doubts in interest calculation

what is the difference between item and arrear interest calculation

Regards

Ravi

[Former Member]

There are two defined interest calculation types in the SAP

system.

1. Balance interest calculation - S - Balance

interest type calculation is used for G L Accounts.

2. Item interest calculation - P - Item

interest type calculation is used for vendors and customers

[Former Member]

Did you ever get an answer to this question? I am attempting to implement interest calculation (e.g., we have been using pay immediately).

Can you recommend some good reading material on determining which tcode to use? F.4A, F.4B, F.4C, F.47 or FINTAP

I assume we will deploy Item Interest Calculation (Arrears) versus Account Balance Calculation.