what is debit and credit, open item interest calculation??

[Former Member]

Dear Members,

What is

1. Debit Interest Calculation?

2. Credit Interest Calculation?

3. Open and Cleard Item Interest Calculation?

[Former Member · Accepted solution]

Hi...

Interest can be calculated on debit balance or credit balance based on AR or AP..

There are two defined interest calculation types in the SAP

system.

1. Balance interest calculation.

2. Item interest calculation.

System defined variant for balance interest calculation type

is u2018Su2019 and item interest calculation type is u2018Pu2019. Balance

interest type calculation is used for G L Accounts. Item

interest type calculation is used for vendors and customers.

Hope you are clear...

Good Luck!!!

Lucid-Mind...

[Former Member]

Thanku all

[srinivasa_maruvada]

Hi

Interest on debit side amount of a GL Accounts is called Dr interest and

Interest in credit side amount of a GL Account is called Cr interest and

Open and Cleared Item interest is interest on Open items and cleared items of a GL Account

Srinivas

[Former Member]

For example my client is investing some amount as applicaiton money to get some shares or stock from a company.

Here can i define that application money gl account as open item account ??

And Explain me detailly about open item interest calculation??

[Former Member]

Hi Shashi..

In Item interest calculation cleared items are considered in the interest run. All those items which are cleared are not considered as wanted.

Hope you are clear..

Good Luck!!!

Lucid-Mind.......