Averaging Capital Interest Calculation Functionality (Doc ID 2946945.1)

Last updated on SEPTEMBER 04, 2023

Applies to:

Goal

On : 11.13.23.01.0 version, Capitalize Assets And Interest

Interest calculation functionality as per below formulas

The Monthly rate is then applied to the month's average balance to compute the capitalized interest for the month

                  Beginning balance        Expenditure       Ending Balance       Average    Monthly Capital Interest

                        (a)                     (b)                    ( a+b )                 ( a+[b/2] )
Jan             -                     $100,000.00       $100,000.00           $50.000.00          $145.83
Feb             $100,000.00         $40,000.00         $140.000.00           $120,000.00        $350.00
Mar             $140.000.00         $60.000.00         $200.000.00           $170,000.00        $495.83
Apr              $200.000.00         $100.000.00       $300,000.00           $250,000.00        $729,17
May             $300,000.00         $30,000.00         $330,000.00           $315,000.00        $918.75
June            $330,000.00         $2,000.00           $332,000.00           $331,000.00        $965.42

                                               Total Capitalized Interest 3.605.00

Has Oracle this  formula or any setup which can be done in this way ?
 

Solution

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