Dear friends can you tell me about item interest calcu

Question

dear friends,
       hi friends can anybody please tell me about item int calculation, where it is used and how?
thanking you
Ramkrishna

Answer 1

Dear Ramkrishna,
we use Item int calculation in AP/AR for customer
the following steps give u more details about that,
Here are steps for interest calculation:
1. Define terms of payments:
T.code: OBB8
path: img ->fin. accting -> AP AR :-> Business transactions :->outgoing invoice and credit memo :-> maintain terms of payment
2. Define Interest Cal indicators / type:
T.code: ob46
path: img ->fin. accting -> AP AR :-> Business transactions :-> interest calculation global settings :-> define interest cal types
here in int cal type select 'p' for int cal on line items
3. Make Interest Indicator Available to Interest Run Program:
T.Code: ob82
path: img ->fin. accting -> AP AR :-> Business transactions :-> interest calculation global settings :-> prepare int. on arreas
4. Create Reference Interest Rate:
T.code: OBAC
path: img ->fin. accting -> AP AR :-> Business transactions :-> interest calculation :-> interest calculation -> define reference interest rate
5. Assign interest indicators to ref. int rate or define time dependant terms:
T.code: ob81
path: img ->fin. accting -> AP AR :-> Business transactions :-> interest calculation :-> interest calculation -> define time dependant terms
here in sequnece #  always use 1 for line item interest
6. Interest calculation account assignment:
Here we will mention how and which accounts the interest program should post.
T.code: obv1
path: img ->fin. accting -> AP AR :-> Business transactions :-> interest calculation :-> interest posting -> prepare interest on arreas calculation (customers)