SAP FICA Interest Calculation Credit:

                                    Interest Calculation:

Background:

When we take electricity or any service connection, then utility company takes security deposits as down payment.

It take Security deposit for a certain period of time, once it completes then they return you or if you decide to move-out from service then also you can raise for the return of the security deposit," as "The utility company holds a security deposit for a specific period. You can request a refund when this period ends, or if you decide to terminate your service."

The purpose of security deposits as advance payments and the responsibility of the utility company to provide interest on the deposited amount. In this time we shall learn Security deposits interest calculation.

Interest is extra amount which could be debit or credit.

2 Types:

1. Debit interest: If you do not pay your bill on time, then the utility company will debit interest from your balance against the open item.

2. Credit Interest: when you paid a security deposit, then the utility company will provide you credit interest into your account.

In this Blog, We shall study about Credit interest calculation, First we shall configure security deposit interest calculation:

Step1: Define Reference interest Rates

Reference interest rates is a key for which we maintain interest rates.

Rate could be as per business process: 5%, 10%,12% Etc

Path🡪SPRO—FI—CPRP—BT—Interest calculation—Item interest calculation--Define reference interest 

New entry:

Here I have created key for Security deposit is ZSEC02:

Step 2: Define percentage rate

Here I’m defining 10%

Step 3: Define calculation rule

Enter entry:

Interest calculation:

It will tell either it is debit or credit entry

Time-dependent Interest:

Here we assigned interest reference

Minimum interest amount:

Step 4: Define interest key

Here we define interest key and assigned interest rule

Step 5: Maintain amount limit for Debit/ Credit

Step 6: Define main and sub for interest

There are 2 standard main transactions 0025 & 0040

0025: Particular we use only for security deposit

0040: Particular we use only for open item

So as of now we are using security deposit, so we ll use 0025 main transaction

Now for sub transaction:

Here we can use standard main and sub-transaction of security deposit interest calculation.

Now we have to extend main –sub with our company code:

Step 7: Main transaction account determination

TCODE: EK01

Here we are using same recon GL account or you create separate GL account for interest

Step 8: Sub-Transaction account determination

TCODE: EK02

Now let’s create a security deposit and assigned interest key:

Go-to FPL9: Here our Security deposit FICA Doc number is 49, So we can use it for calculation interest against it.

TCODE: FPI2 Security deposit interest calculation (End user transaction)

Getting error:

To fix this issue we need to assigned document for interest:

Now open Tcode FPI2:

Now go to line item:

Select the item and calculate interest:

Calculate interest:

Interest amount: 198.58 Rs

Document number: 50

New FICA document are posted:

Check it on FPL9:

Accounting entry:

Accounting entry:

BP/CA Credit and security deposit GL account or revenue GL get Debited