Building on the previous blog How to Track Project Capitalized Interest in SAP (Part 1), it’s time to discuss how to handle this in SAP.
As I mentioned previously, SAP has a solution to calculate interest balances on a project. But before I go any further, let me say that this functionality is also available for an internal order. There isn’t any difference between the two other than a different transaction code. Let’s take a look (at a project).
Below is a simple capital project I created. It’s integrated via Investment Management (IM) to Asset Accounting (FI-AA). Notice that WBS 9003.1 has both an AuC settlement rule and that the settlement has occurred.
The below screenshot shows the charge activity on the WBS. Again, it’s balance is zero so we know it’s been settled… the highlighted column shows the RFBU transactions which are the original expense postings for 146,079.88 EUR and the KOAE transactions which are the credit settlements to the AuC.
Executing the Interest Calculation
Below is the initial screen for the interest run. A few things are immediately noticeable.
First, notice that this is for a single project. However, just like with settlement there is a twin transaction code that is used to run on multiple projects via a selection variant. Same concept.
Secondly, the title says “Actual…”. There is another version of this for plan interest charges… though as with most advanced features of PS planning, I rarely see customers use them (ex. plan distributions).
Lastly, the other parameters on the screen are both self explanatory and resemble some of the same parameters that we see in settlement. If you’ve found your way to our site and this blog, than I have to assume you’ve run through CJ88 before and can probably pick up on what these indicators mean. If not, F1 sufficiently explains what each does.
After executing the program, the first result screen is displayed. This looks similar (though not as polished) as the result screen we get for settlement. If you scroll back up, you’ll see that this project had 8 total WBS but that I only had postings and settlement on one of them. That’s why we see that 1 WBS was processed and the other 7 had no interest relevant balances.
From the above screen we can navigate to the detail list below. All relevant projects and WBS elements are displayed along with the calculated interest charge. For this example, I just have the single WBS to show but there would normally be a long list of the valid WBSs as determined by the selection variant. This is one of the big advantages of keeping the process in SAP… you don’t have to first find (and possibly forget or skip) the appropriate WBS elements and then get their balances.
How was the 930.51 EUR calculated? The below screenshot shows the calculation details. The balance of the WBS (the 146k EUR shown earlier), the interest rate I’ve configured of 7.5%, as well as the number of days used in the calculation are all displayed. The math can be done from left-to-right yielding the final calculated amount for period 11 of 930.51 EUR. The configuration gets a bit long in places but one of the items I’ll bring up is that you can specify the total number of days used in the calendar year. I’ve configured 365 for this example so the period factor is 0.08493 (31 / 365).
That’s it! Just like most other period-end jobs in SAP, triggering the interest calculation and the resulting FI postings that are made are simple. It’s all done within the system, it’s controlled and secure, and can be easily scheduled. If you define your selection variant correctly, it will also easily pick all of your new projects… you don’t have to download all of your projects and their current spend values into Excel every month. Just execute the tcode and confirm the results.