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Interest significance on ASSET ACCOUNTING?


What is the importance of interest calculation in asset accounting? on which assets we need to calculate interest? what is the impact in financial accounting?

Can anybody please allobrate on this?



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  • Best Answer
    Posted on Jun 19, 2008 at 06:22 AM


    Refer to for Asset Accounting Interest

    Please let me know if you need more information.

    Assign points if useful.


    Sridhar M

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  • author's profile photo Former Member
    Former Member
    Posted on Jun 19, 2008 at 06:31 AM


    For cost accounting, you might have to calculate imputed interest on the capital tied up in assets. Therefore, the system enables you to calculate this interest per depreciation area, in addition to the depreciation and/or valuation types already mentioned (ordinary depreciation, special depreciation, unplanned depreciation, and reduction of APC). It can be for any assets.

    If you would like the system to calculate interest in a depreciation area, make the following system settings:

    Specify that interest should be managed in the depreciation area.

    Define depreciation posting in this company code and in this depreciation area so that interest should be posted.

    Use a depreciation key that has an interest key assigned to it for calculating interest (or define such a key yourself).

    The system then posts interest together with depreciation when you perform a periodic depreciation posting run. Account assignment is to the accounts specified in the given depreciation area in the account determination. It is also possible to have additional account assignment to the cost center entered in the asset master record (just as for depreciation).

    Hope it clears.. assign points, if yes.


    Saurabh Agarwal

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