What is interest key in SAP FI - Financial Accounting?

SAP Term: interest key

• Component: FI

• Component Name: Financial Accounting

• Description: A key under which interest calculation parameters are defined such as interest calculation frequency, minimum and maximum amounts, transfer and tolerance days. An interest key is always connected to an interest calculation rule, under which basic agreements for interest calculation are defined.

Smart SAP Assistant

• Key Concepts: 
  Interest key is a feature in SAP Financial Accounting (FI) that allows users to define interest rates for different types of transactions. It is used to calculate the interest rate for a particular transaction and can be used to set up different interest rates for different types of transactions. 
  
  How to use it: 
  To use the interest key feature, users must first define the interest rate for each type of transaction. This can be done in the SAP system by entering the interest rate in the Interest Key field. Once the interest rate has been defined, it can be used to calculate the interest rate for a particular transaction. 
  
  Tips & Tricks: 
  When setting up an interest key, it is important to ensure that the correct interest rate is entered for each type of transaction. This will ensure that the correct interest rate is applied when calculating the interest rate for a particular transaction. 
  
  Related Information: 
  The interest key feature is closely related to other features in SAP Financial Accounting such as payment terms and payment methods. These features are used to define how payments are made and when they are due, and they can also be used to calculate the interest rate for a particular transaction.