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Asset Interest Calculation

This document discusses how to configure asset interest calculation in SAP. There are three prerequisites: 1) specify that interest should be managed in the depreciation area, 2) define depreciation posting so interest is posted, and 3) use a depreciation key assigned to an interest key for calculation. The document then explains each configuration step in detail, including assigning the interest calculation option and accounts in the depreciation area and key. Running depreciation will then post the calculated interest amount at period-end.

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asif iqbal
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266 views

Asset Interest Calculation

This document discusses how to configure asset interest calculation in SAP. There are three prerequisites: 1) specify that interest should be managed in the depreciation area, 2) define depreciation posting so interest is posted, and 3) use a depreciation key assigned to an interest key for calculation. The document then explains each configuration step in detail, including assigning the interest calculation option and accounts in the depreciation area and key. Running depreciation will then post the calculated interest amount at period-end.

Uploaded by

asif iqbal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Asset Interest Calculation

Hi, today I want to post a blog about Interest Calculation on fixed assets, how to configure and how to run.

You can calculate imputed interest of an asset and also be able to post it into G/L account. This usually happens on cost
accounting depreciation.

There are three prerequisite you must ensure before posting depreciation on an area.

 Specify that interest should be managed in the depreciation area.

 Define depreciation posting in this company code and in this depreciation area so that interest
should be posted.

 Use a depreciation key that has an interest key assigned to it for calculating interest (or define
such a key yourself).

These are stated on sap help document. Now I will go into each criteria of the above 3 checks.

1. First check: Depreciation Area

IMG path: Asset Accounting – Integration with the General Ledger – Define How Depreciation Areas Post to General
Ledger
 The depreciation area must be a real depreciation so that you can assign depreciation key and
calculate depreciation base on the key. If the depreciation area is a derived area, you can only see it
as formula resulted from other area and no way to calculate using a depr. key.

 As interest cannot be posted separately, it can be only posted with depreciation run, you have to
choose posting to GL as “Area posts APC and depreciation area as periodic basis”.

 The last one, interest calculation posts a positive amount, so you should allow only positive
values or zero only. Else, it is not going to calculate interest for you!

2. Second check: Depreciation Area Posting

IMG Path: IMG path: Asset Accounting – Integration with the General Ledger – Post depreciation to the General Ledger
– Specify Intervals and Posting Rules
This checks if interest should be posted in the area for each company code.

In addition to the configuration of depreciation area, you have to assign account for posting:

IMG: Asset accounting – Asset Accounting (Lean Implementation) – Organizational structures – Depreciation Areas
– Specify Allowed Depreciation Types for Depreciation Areas (Tcode: OABZ)
Once you have ticked the option to allowed interest calculation, go to assign depreciation account for account
determination (Tcode: AO90). Now you can see additional section called “interest account assignment”. Assign
account for posting interest there.

3. Last check: Depreciation key

IMG Path: Asset Accounting – Depreciation – Valuation Methods – Depreciation Key – Maintain Depreciation
Key (Tcode : AFAMA)

In the depreciation key you want to use, add one more assignment with depreciation type “Interest”. Then assign
appropriate calculation methods as your business requirement on calculating interest.

After completing configuration, you assign the key in asset master and see if the asset is going to calculate interest.
At period-end closing, you run depreciation and the interest amount is also post at the time of depreciation. Below is the
asset explorer screenshot, after all configurations:

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