Compund Interest Calculation for Projects

[Former Member]

Hi Sirs ,

I have 2 Intrest Profiles.For one Profile the Compund and Simple Interest Both are calculated on the Monthy Balance..Where as for the other only Simple intrest is being calculated.

I Have checked most of the Configs from PS end and found no significant difference in both.

The only difference i found was in the "Define time dependent term" where the one which gives Compound intrest has effective date from 07/2009 and the one which does not has from 04/09. can this be a reason

Thanks in advance

leo

[Former Member · Accepted solution]

Dear Leo,

did you check in transaction OPIC whether the value category which includes the cost element for the interest postings (the assignment of cost elements to value categories can be verified via transaction CJVC) is set as relevant for the Interest Calculation for both interest profile/interest indicator combinations?

Kind regards,

Dirk

[Former Member]

Hi Dirk,

Thanks for the valuable answer.

When i went for the OPIC transaction i found that for both the Project Profiles in Question the Value category is ticket in "None"

Which on pressing F1 gives

Interest relevance: none

If you set this indicator, the value category is not included in the interest calculation.

Use

Since interest is assigned to a G/L account/cost element, this indicator also controls, whether compound interest is calculated in an interest run

But the doubt arises that why should it calculate CI for one and not for the other when both are same.

Kind Regards

leo

[Former Member]

Hi Leo,

just to clarify, we're not talking about the compound Interest Calculation for investment measures (an investment profile is assigned to the WBS element and an asset under construction is created).

In case that we're not talking about the interest calculation for investment measures the only possibility which I can see is that the cost element for the interest postings is assigned to another value category as well. Have you checked this in transaction CJVC? Is the customizing concerning the interest relevant value categories (OPIC) completely the same?

Kind regards,

Dirk