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Interest calculation for CAPEX projects

Former Member
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Hello Mentors,

In my current business scenario business wants to capitalize interest for Capex projects. We don’t have Investment Management implemented.

Can you please help me about the SAP standard procedure to calculate the capitalize interest, and the building block. I have checked building block J12 of project system, it don’t have anything in this context.

  

Regards,

Amlan Neogi

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
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You first need to do the relevant customizing under Interest Calculation - Profile, Relevance, update control, detail settings etc.

For capex projects i understand you must have assigned investment profiles to the WBS elements hence AUC would have been created. Interest calculation would only take into account the cost posted to WBS/AUC. If there are networks under the WBS elements you first need to settle the cost to WBS elements before running the interest calculation.

I would still recommend you read the sap help before proceeding.

rgds

saurabh

Answers (1)

Answers (1)

Former Member
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Hi Amlan,

Mr Patel is right.

what you need is

1. Activate interest calculation in config.

2. Do settlement(CJ88) at the month end. Check entries in GL mapped via investment profile.

3. Run interest calculation.

Hope this will suffice your need.

Regards,

Pranav