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*Balance Interest Calculation*:- It is a calculation of Interest on total balance of an account or total balance of customer

account. it is represented in "s". System defined variant for balance interest calculation type isS and item interest calculation type is P. Balance interest type calculation is used for G LAccounts. Item interest type calculation is used for vendors and customers.To display all transaction codes go to transaction code:SE16

The Nine configuration steps for calculation of balance interest calculation are1) Define interest calculation type (OB46)2) Prepare account balance interest calculation (OBAA)3) Define reference interest rates (OBAC)

4) Define time dependent terms (OB81)5) Define or specify interest rates (OB83)6) Create G L Accounts for Intesrest Gained and Interest allowed and Loan Account (FS00)

7) Prepare gl account balance interest calculation and Define automatic posting (OBV2)8) Entry for Loan (F-02)

9) Run interest programm (f.52)

Step 01: Define interest calculation types (OB46)Path: SPRO>FInancial Accounting New>Financial Accounting Global Setting New>Business

Transaction> Bank A/C interest calculation>Interest calculation global settings>Define interestcalculation types Go to new entries Interest Id (V1) put discription Name Interest calculationtype (S) and enter it will take automatically balance interest for S Make sure don't tick markthe box given and save it. Step 02: Prepare account balance interest calculation (OBAA)Path: SPRO>FInancial Accounting New>Financial Accounting Global Setting New>Business

Transaction> Bank A/C interest calculation>Interest calculation global settings>Prepareaccount balance interest calculation Go to new entries Give calculation indicator as definedV1 Interest calculation frequency : 01 (1 month) Calendar type : G (28-31/365) Give numberrange : 03 Select balance plus interest. SaveStep 03: Define reference interest rate (OBAC)Path: SPRO>FInancial Accounting New>Financial Accounting Global Setting New>BusinessTransaction> Bank A/C interest calculation>Interest calculation>Define reference interestrates Go to new entries Reference interest rate : V1 (same as Interest Indicator) Long text :12%balanace interest Short text : 12% balance interest Date from : 01.03.2010 Currency :INR SaveStep 04: Define time dependent terms (OB81)Path: SPRO>FInancial Accounting New>Financial Accounting Global Setting New>BusinessTransaction> Bank A/C interest calculation>Interest calculation>Define time dependent termsGo to new entries Interest calculation indicator : V1 Currency key : INR Effective from :01.03.2010 Sequential no : 01 Term : Debit interest balance interest calculation Referenceinterest rate : V1 Save Go to new entries or F8 Interest calculation indicator : V1 Currency :INR Effective from : 01.03.2010 Sequential no : 02 Term : credit interest balance interestcalculation Reference interest rate : V1 Save

Step 05: Enter Reference Interest Rate Values (OB83)Path: SPRO>FInancial Accounting New>Financial Accounting Global Setting New>BusinessTransaction> Bank A/C interest calculation>Interest calculation>Enter interest values. Go tonew entries Reference int. rate (V1) values effective from (01.03.2010) interest rate (12%)Before creating GL account Go to T.Code: OBD4 to create secured loans account group. Goto new entries Chart of accounts a/c group name from account to account Chart of Account'TATA' secured loans 100300 100399 TATA INTR interest Expenses 400100 400199 TATAINTR interest Gained 300100 300199 SaveStep 06: Creation of G L Accounts (FS00) G L A/C no : 100305 Company code : TATA (TataInfotech) Select create button Account group : secured loans Select balance sheet accountShort text : HSBC Bank Account Long text : HSBC Bank Loan Account Select control data tabSelect only balances in local currencies Select open item Select line item display Sort key :001 Select create/bank/interest tab Field status group : G005 Select relevant to cash flow

Interest calculation indicator : V1 Save Give G L A/C no : 400105 Company code : TATASelect create button Account group : interest Select profit and loss account Short text :interest Allowed Long text : interest Allowed Account Select control data tab. Select line item

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display Sort key : 001 Select create/bank/interest tab Field status group : G001 Save Give GL A/C no : 300107 Company code : TATA Select create button Account group : interest Selectprofit and loss account Short text : interest Gained Long text : interest Gained Account Selectcontrol data tab. Select line item display Sort key : 001 Select create/bank/interest tab Fieldstatus group : G001 SaveStep 07: Define automatic posting account (OBV2)

SPRO>FInancial Accounting New>Financial Accounting Global Setting New>BusinessTransaction> Bank A/C interest calculation>Interest posting>Prepare G L A/C balanceinterest calculation Go to accounts Chart of accounts : TATA A/C symbol currency G L A/C0002 INR 400105 (interest Allowed) 2000 Inr 100305 (HSBC Bank Loan Account) SaveStep 08: Entry for loan (F-02): Give document date : 01.03.2010 Posting date : 01.03.2010Type : SA Company code : TATA Currency : INR Posting key : 40 G L Account : 200005(ICICI bank a/c) Enter Amount : 50,00,000 Business area : IRON Value date : 01.03.2010Text : loan received Posting key : 50 G L Account : 100305 (HSBC bank a/c) Enter Amount : *Business area : IRON Text : + Save Step 09: Interest calculation run (F.52):Accounting>Financial Accounting>General ledger>Periodic Processing>Interestcalculation>Balances Give chart of accounts : TATA G L A/C no : 100305 (HSBC BankAccount) Company code : TATA Calculation period : 01.04.2010 to 31.12.2012 Select leapyear. Select post also if value date in past Select update master records Execute Go to

system on menu bar. Select services Select batch input Select sessions Select RFSZIS00Select process Select display errors only Again select process The system gives themessage: processing of batch input session completed.