Analysis of different Interest Calculation Method in ARO

[anuzgoel]

Hi, I have been trying to calculate the interest amount in Obligation I created with the Calculation method act/365. 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 31.03.2027 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 - 3.05460%

Below are the details.

Calculation Method - ACT/365

Formula used for Interest % Per Month - (3.0546%/(86400*365))*((86400*30))

Formula used for Calculated Interest amount per month - Base Amount*Annual Interest Rate/365*Number of Days in Month

I am getting a different amount for each line.

I hope someone can help me understand this.