Interest Calculation Procedure

Configuring the Interest Calculations Procedure:

This configuration allows you to charge interest on overdue customer accounts. Interest can be calculated by using the line items or overall account balances. SAP keep tracks of the date of the last interest run and stores it in the customer master record.


First create an Interest Indicator.

OB46 – Interest Settlement Calculation Type
Int Calc. Type
P – calculate interest based on line items.
S – calculate interest based on account balances.

Secornd, make it avaliable to the interest run program.

OB82 – Interest Terms

Third, determine the interest rate that will be used by the calculation.

OBAC – Define Reference Interest Rates

OB83 – Enter the Reference Interest Rates Value

Fourth, assign the interest indicator to the reference interest rate.

OB81 – Define Time Dependent Terms

Finally, determine the how and to which accounts the interest program will post.

OBV1 – Prepare Interest on Arrears Calculation

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