Analysis of different Interest Calculation Method 360E/360 in ARO

[anuzgoel]

Hi, I have been trying to calculate the interest amount in Obligation I created with the Calculation method 360E/360. However I am unable to understand how SAP calculated the interest amount. Please note ARO was created with a Setup Date of 01.04.2023 & settlement date of 30.04.2027 with a cost estimate of $500,000.

Please note we are still in ECC, not S4. Please provide your answer/suggestion as per ECC.

Inflation Rate - 2%

Interest Rate - 2.92479%

Below are the details.

Calculation Method - 360E/360

Formula used to calculate number of days - (J2 - J1) * 360 + (M2 - M1) * 30 + (D2 - D1)

J1 & J2 are Years

M1 & M2 are Months

D1 & D2 are Days

• If D1 = 31, then the system sets D1 = 30.

• If D2 = 31, then the system sets D2 = 30.

I am getting a different amount for each line.

I hope someone can help me understand this.

Regards

Anuj