*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 is
‘S’ and item interest calculation type is ‘P’. Balance interest type calculation is used for G L
Accounts. 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 are
1) 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 interest
calculation types Go to new entries Interest Id (V1) put discription Name Interest calculation
type (S) and enter it will take automatically balance interest for S Make sure don't tick mark
the 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>Prepare
account balance interest calculation Go to new entries Give calculation indicator as defined
V1 Interest calculation frequency : 01 (1 month) Calendar type : G (28-31/365) Give number
range : 03 Select balance plus interest. Save
Step 03: Define reference interest rate (OBAC)
Path: SPRO>FInancial Accounting New>Financial Accounting Global Setting New>Business
Transaction> Bank A/C interest calculation>Interest calculation>Define reference interest
rates 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 Save
Step 04: Define time dependent terms (OB81)
Path: SPRO>FInancial Accounting New>Financial Accounting Global Setting New>Business
Transaction> Bank A/C interest calculation>Interest calculation>Define time dependent terms
Go to new entries Interest calculation indicator : V1 Currency key : INR Effective from :
01.03.2010 Sequential no : 01 Term : Debit interest balance interest calculation Reference
interest 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 interest
calculation Reference interest rate : V1 Save
Step 05: Enter Reference Interest Rate Values (OB83)
Path: SPRO>FInancial Accounting New>Financial Accounting Global Setting New>Business
Transaction> Bank A/C interest calculation>Interest calculation>Enter interest values. Go to
new 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. Go
to 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 TATA
INTR interest Gained 300100 300199 Save
Step 06: Creation of G L Accounts (FS00) G L A/C no : 100305 Company code : TATA (Tata
Infotech) Select create button Account group : secured loans Select balance sheet account
Short text : HSBC Bank Account Long text : HSBC Bank Loan Account Select control data tab
Select 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 : TATA
Select 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
display Sort key : 001 Select create/bank/interest tab Field status group : G001 Save Give G
L A/C no : 300107 Company code : TATA Select create button Account group : interest Select
profit and loss account Short text : interest Gained Long text : interest Gained Account Select
control data tab. Select line item display Sort key : 001 Select create/bank/interest tab Field
status group : G001 Save
Step 07: Define automatic posting account (OBV2)
SPRO>FInancial Accounting New>Financial Accounting Global Setting New>Business
Transaction> Bank A/C interest calculation>Interest posting>Prepare G L A/C balance
interest calculation Go to accounts Chart of accounts : TATA A/C symbol currency G L A/C
0002 INR 400105 (interest Allowed) 2000 Inr 100305 (HSBC Bank Loan Account) Save
Step 08: Entry for loan (F-02): Give document date : 01.03.2010 Posting date : 01.03.2010
Type : 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 : 01.03.2010
Text : 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>Interest
calculation>Balances Give chart of accounts : TATA G L A/C no : 100305 (HSBC Bank
Account) Company code : TATA Calculation period : 01.04.2010 to 31.12.2012 Select leap
year. 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 RFSZIS00
Select process Select display errors only Again select process The system gives the
message: “processing of batch input session completed”.