What is 'interest type' in SAP IS-OIL-PRA - Production and Revenue Accounting?

interest type - Overview

• Component: IS-OIL-PRA

• Component Name: Production and Revenue Accounting

• Description: The type of ownership interest that the owner holds.

interest type - Details

• 
  Key Concepts: 
  Interest type is a component of the Production and Revenue Accounting (PRA) module in SAP IS-OIL. It is used to define the interest rate that will be applied to a particular transaction. Interest types are used to calculate the interest amount for a given transaction, such as a loan or an invoice. 
  
  How to use it: 
  In order to use an interest type, you must first create it in the PRA module. This can be done by entering the interest rate, the start date, and the end date for the interest type. Once created, you can assign it to a particular transaction in order to calculate the interest amount. 
  
  Tips & Tricks: 
  When creating an interest type, make sure to enter the correct start and end dates so that the interest rate is applied correctly. Additionally, make sure to check that the interest rate is up-to-date and accurate before assigning it to a transaction. 
  
  Related Information: 
  For more information on how to use interest types in SAP IS-OIL PRA, please refer to the official SAP documentation here: https://help.sap.com/viewer/product/IS_OIL_PRA/7.5/en-US