In this configuration activity we are defining interest calculation type. It could be either Item, Balance or Penalty type of interest calculation.
IMG Path: Financial Accounting (New) -> Accounts Receivable and Accounts Payable -> Business Transactions -> Interest Calculation Global Settings -> Define Interest Calculation Types
Tables: T056, T056X
In the initial screen you will see all interest calculation types already defined in the client. From here you are able to create new entry or edit an existing one.