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Former Member
May 21, 2016 at 12:41 PM

Fixed Deposit Interest Calculation Issue


Hi Experts,

We have implemented FD Financial instrument using Standard Product type available in SAP for one of our client.

We are facing issues in Interest Calculation users are validating Interest calculated by SAP using standard Interest Calculation method and Method used by the Bank. I have tried every possible Scenario to match interest with the bank interest using Standard interest method available in SAP but not get any success in it.

Bank Interest Calculation formula

Lets suppose if the Transaction is of 192 days. Bank do Quarterly settlement of interest.

Then 192 days there are 2 Quarters Bank will use Formula

Interest = Amount*Interest Rate/12*No of quarters

For Reaming 12 days bank will use Formula :-

Interest = Amount*Interest Rate/12*No of days/no of days ( Month in which interest is due)

Please Suggest any formula we can use to get the interest match with the Bank interest or any work around is possible. PFA the excel sheet with details explanation of BANK calculation and SAP calculation.