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Former Member
Aug 28, 2013 at 04:07 PM

Interest calculation type

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hi,

in sap help interest calculation is divided into the following types:(http://help.sap.com/saphelp_banking80/helpdata/en/ec/a33d40c6d98437e10000000a155106/content.htm)

Linear Interest Calculation

Exponential Interest Calculation

Combined Interest Calculation

Intraday Interest Calculation

but in system i found

  • item interest calculation
  • balance interest calculation
  • penality interest calculation

So,How these two group are related to each other and if they are not related then what is the difference among item interest calculation ,balance interest calculation , penality interest calculation and what are the business scenario in which these are used and what accounting effect these methods have

Regards

Khagesh