Automatic Interest Rate Fixing - TJ05

Hi,
I have table T056P populated with a rate and an 'effective-from date' for a reference interest rate. Therefore, when I run TJ05 to fix the reference interest rates, it is not taking the 'effective-from date' into consideration. It will only do the fixing if a rate exists for the exact date.
e.g.
T056P is popualated with the following:
Reference: 1DUKBAS
Effective-from date: 01.07.2009
Rate: 0.5
If I run TJ05 for a deal which needs a interest fixing on the 02.07.2009 - it gives the error: "02.07.2009 1DUKBAS: No interest rate exists (TRIA014)."
I thought it would fix with the rate from the 01.07.2009 as this rate is 'effective from' the 01.07.2009 - but it is not.
Any ideas would be much appreciated.
Regards,
P

Hi,
Take the case of OTC derivatives. You fix your reference interest rate based on your interest frequency. In the case of swap, suppose your interest frequency is 3 months then you generally go for Libor 3m though it is not a necessity. You can go for Libor 1m and have interest frequency as 3 months, but in practise, we go for the reference rate based on the interest frequency.
And based on the frequency, we go for fixing and adjusting the interest rate. If it is 3 months, then we go for interest rate adjustment every 3 months. Then we fix the rate for the reference interest rate on that date (the calender rule applies here) and go for automatic interest rate adjustment. It will adjust all the transactions having this reference interest rate and due on that day.
Another way is to go for manual interest rate adjustment, if you want to fix only for a single transaction. Then you specify the interest rate which is specific for that transaction alone.
Regards,
Ravi

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We have created new Reference Interest "Sant-30D" and maintained Interest Rates on daily basis from 19.01.2011. We assigned this in new financial Transaction in FTR_Create. When we tried Automatic Interest Rate Adjustment through TJ05 system throws a message u201CUnable to find any interest rate adjustments for the selection criteriau201D. We have not settled the Fin Transaction. Any suggestions please?
Regards,
Saravan

Hi Jitesh,
Thank you, the table is helpful. With the date 31.01.2011 there are no results in the table either.
But with the date 01.02.2011 the table shows a result with status 1 (not fixed). When I try to execute TJ05 in test mode for 01.02.2011, I am getting the same result "Unable to find any open interest rate adjustments for the selection criteria".
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Saravan Kanuparthy.

TRM: Interest rate not taken in flow

Dear experts,
In a mirror deal, operation 55M Intercompany loans (borrowing) it is not taking the the interest rate in future settlements (cash flow) and the amount is 0%.
However, in his mirror operation (Investment) if it is given perfectly
We did the automatic interest rate adj with Tj05, but by mistake we (TI37) Reverse Interest Rate Adjustment, and try to adjust again, it seems that the nominal interest falls to zero in the flow
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Hi Julio
Please check that you have not edited the flow in cash flow tab.
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Regards
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I have this activity that for every interest rate resetting, I will encode the new interest rate in TI10.
For swap transaction, the resetting I have is 01/14/2011 when it was originally contracted. However, given the governmentu2019s new thrusts on tourism, holidays were changed/moved in order to have long weekend. So the bank decided that the new interest rate resetting will be on 01/18/2011. Take note that there are already previous adjustments made in the past. When I reset the interest rate, I created a new interest rate, and I used the date 1/18/2011 in the actual fixing date. However, the accrual in SAP still uses the 1/14/2011 and not the 1/18/2011. So how do we solve this?
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Hi Experts,
I am facing a strange issue while trying to change Cash Flow in Int. rate instrument.
Scenario:
I am trying to edit a flow in FTR_Edit and system is allowing me to change most of the flow. Please see below:
But if try to change the very next flow on the same date i.e. 960.93 USD Edit Flow option is NOT coming at all.Please see below
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Cheers !
Adi

Hi,
basically changes in the cashflow are exceptional and for circumstances, where you have postings after the flow(s) you want to adjust and you cannot reverse these postings because of closed periods etc. This changes in the cashflow do not change the interest condition(s) itself.
If you have more than 1 interest period and the interest rate of the future periods are not known yet, you should use a Reference Interest Rate (e.g. LIBOR) instead a fix one in the interest condition. Then you are able to use the fixing-functionality (TI10 or TJ05) to get the interest rates into the deal.
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Regards,
Lorenz

Edit flow at interest rate instrument

Hi all,
Is there anyone familiar with interest rate instrument product in SAP-TRM?
Just want to ask if we want to change the line at the cash flow for example the nominal interest, can we do it in a bulk (i mean do it for many lines at one time)? Is there any function in SAP-TRM that can be used for this purposes or we just need to have a customized program to cater for this requirement? This is because for the interest rate amount, the amount will not be the same at the time we input the transaction. In order to makesure it is correct is by change or adjust the interest rate manually at the line item in the cash flow.
Hope to hear from you soon.
Thanks.

Hi,
basically changes in the cashflow are exceptional and for circumstances, where you have postings after the flow(s) you want to adjust and you cannot reverse these postings because of closed periods etc. This changes in the cashflow do not change the interest condition(s) itself.
If you have more than 1 interest period and the interest rate of the future periods are not known yet, you should use a Reference Interest Rate (e.g. LIBOR) instead a fix one in the interest condition. Then you are able to use the fixing-functionality (TI10 or TJ05) to get the interest rates into the deal.
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Regards,
Lorenz

Configuration of OTC Derivaties - with interest rates -CAPS-Floor - LBIOR.

Hi guys,
Please help me in sloving this issue,
i have a requirement to configure OTC derivaties deals where in should create a contract with interest rates (CAPS & Floor prices).
Can some one please throw some light on how the end-end transaction flows.
My understanding is that a OTC -derivate contract can be created with either a Floor or CAP interest rate in TO01 and then
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Hi Ravi,
Thank you very much for providing the information - this is very much help
i have now fixed all the configuration issues , However am bit confiused the end- end transaction flow.
Can you please provide us your inputs for the transaction flow.
1.Creation of contract - TO01.
2. Interest Rate adjustments - TI01 or TJ05 ( when should the user exactly will do this. i,e if i have created a contract with a time period of 1 year and with a frequency of 3month LBIOR 3 - so will User run this transaction code at the end of 3rd month? Can you please share some knowledge on this.
3. Do TBB1 - This is to post the deal to accounting ( i.e imean to say this will create accouting entries).
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Can you just please share the how the cycle runs for the following contract.
A contract is created wth CAP -Pur-5% with an amount 1000$ with an time frame of 1 year and with a frequency of 3months.
and will get matured after one year.
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Create an Interest rate adjustement again

Hi everybody
The key user has reversed the interest rate adjustment by TI37, the deal has the condition of interest and interest rate adjustment but doesnu2019t show the cash flow to the interest in foreing Exchange because the TRIAT tables is empty. Now, by TI10 or TJ05 we tried to set it again and not permit us.
How we can create the interes rate adjustment again to fix it and post it?
Best regards,
Paula

Hi guys,
someday's ago i resolved the problem but I forgot to close this post. The solution to the problem was resolved with the following bapis:
BAPI_FTR_IRATE_CREATE
BAPI_FTR_CONDITION_GETLIST
BAPI_FTR_CONDITION_CREATE
BAPI_FTR_ADDFLOW_GETLIST
BAPI_FTR_ADDFLOW_CREATE
BAPI_FTR_PAYDET_GETLIST
BAPI_FTR_PAYDET_CREATE
Regards,
Eric

Interest Rate Instruments in Treasury

Hello SAP Gurus
We are using SAP Treasury Product (55A u2013 Interest Rate Instrument) to meet one of our business requirements. We are creating Investment deal/contract with a variable interest. We are also maintaining the Interest Rate Values in transaction code JBIRM on daily basis.
The business requirement is here that they want to calculate the interest value on daily as per rate maintained in transaction code JBIRM and pay on Monthly Basis.
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If I set frequency Daily in Interest Structure Tab and executing transaction code TJ05 to update the interest rate in the deal/Contract. It is updating correctly. But the Issue is here that than it is creating interest accounting entry on daily basis. We do not want to create Interest Entry on Daily.
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Amit Kumar Jain

To calculate interest based on a daily rate, but only post interest monthly, you have to maintain the interest and interest rate adjustment conditions with different frequencies.
In the deal, click on the conditions button. You should see a condition 1200 - Nominal interest and because you have used a variable interest rate, you should also see a condition 1210 - Interest rate adjustment. To post interest monthly, you need to set the Nominal interest (1200) condition to Regular update with Frequency of 1 Month. To enter daily interest rates, you need to also set the Interest rate adustment (1210) to Regular update, however the frequency should be 1 Calendar day.
In addition, if you will not have interest rates for weekends and banking holidays, you can set the calendar rule to next or previous working day to and enter a factory calendar that has been configured with weekends and banking holidays as non-working days. Whether you select next or previous working day depends on how the bank calculates interest for the weekends/holidays. For example, if the bank uses the rate from Friday to calculate interest for Saturday and Sunday, you would select previous working day. If however, it uses Monday to calculate the interest, then you would select next working day.
I'm not clear on the issue you are experiencing with TJ05. Can you explain furthe rwhat you mean when you say that it is taking only one interest rate, not all?
Regards,
Amit

TRM: doubts in interest rate instrument and Business partner

Dear all,
While implementing Treasury Risk Management, in order to fulfill my clientsu2019 needs I have three questions regarding, 1. Interest rate instruments, 2.Leasings and 3.Business partners.
1.When creating a contract of an interest rate instrument , associated to a floating interest rate (e.g. EURIBOR 3M), how can I calculate the tax stamp which represents 4% of my interest rate amount, and occurs every time I have to pay interests?
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Thanks in advance,
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Daniel

Hi,
Please consider following:
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The path for config- TRM-Trans Mgr- Money Market-Transaction Mgt- Flow Types- Derived FLows
2. Again since VAT is a derived flow for an actual cash flow, so you can achive this through derived flows config.
3. You can make posting to Business Partner account by performing following:
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b. Make payment settings in transaction to Customer and select payee/counterparty. While posting with TBB1, entries will be against Customer A/c and further clearing will be reqd at customer level against respective payment bank.
c. To achieve this output, you may require to define account determination accordingly for customers.
I suggest to post seperate thread for each issue rather than posting with single thread for better response.
Regards
Prasad AV

Configuration automatic interest calculation on Accounts Receivable (AR)

HI Guru's
Any one can send me documents for :..
Configuration automatic interest calculation on Accounts Receivable (AR) open invoices for AR module based on aging of the customer i.e. different ageing different percentage.
Configuraton of automatic journal entry for interest calculated.
regards
JK

Tax gets calculated based on the rules setup. At lease default values of attributes like applicability, registration, POS etc are provided once the tax setup is done.
Please check the rules that are setup in Tax Managers to ensure which tax is getting calculated.
If you do not want tax to be calculated unless a TCC is supplied by user, you can setup a default tax with rate as zero which will be deafulted evrytime without TCC.
For rest of the cases where a TCC will be entered, you can setup up Determining Factor Sets, Condition Sets and then create rules using them for appropriate tax calculations.
Regards

Copied PO with flag "exchange rate fixed"

Hello!
If I have an old PO where the flag "exchange rate fixed" is set and I copy this PO, the new PO has set this flag and the OLD exchange rate. Did I have any chance to get automaticly the actual exchange rate, by copying an old PO with the flag "exchange rate fixed"?
Thank you for your help.
Best regards.
T.W.

Oh sorry, I have forgot something...
I have activated a "Transaction variant" and there is defined that the checkbox "exchange rate fixed" should always be checked. So every new PO I create, will have the flag "exchange rate fixed". In this case, is it possible that the system get the actual exchange rate?
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Interest rate instru and securities

I have one product type Z01 "bond issued" with product category 550 (interest rate instrucment), the interest is using flow type 1203. it is under MM
in securities module, I have another product type "fixed rate bond" with product category 40 (bond), the interest rate is using flow type 0850.
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Good Afternoon,
Well, Treasury is made of PRODUCTE types - it is predefined parameters in the system that map specific instruments. Each product type has specific settings/paramenters that can manage only specific financial instruments. You are no able to change such settings/parameters.
For example, 510 producte type is for Deposit. you can do anything that deposit can do!
550 product type is for Interest instrument - simple interests! Here you can map Deposit, Loans, Credits. I used this producte type for leasing - simple scheme of leasing.
And there is product type 040 for bonds, mentioned by Aditiya Hakim. This product has only specific parameters to manage bonds.
So, you have 2 possibilities here:
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2. To use 040 product type for bonds, Here you'll have all potention of bonds intstrument, as 040 prod. type is made just for that!

Interest Rate Assignment

Hello. I really need help on this. I am very new with programming with Java. I have an assignment due and I don't even know where to begin. All I know how to do is program words and that is it. My assignment is as follows:
Here is an example of a transaction just took place in a store where hi-fi equipment
is sold. A customer purchased a stereo system that cost him $1,000 on the following
credit plan. No down payment, and interest rate of 18% per year (and hence 1.5%
per month), and a fixed monthly payment of 5% of the original loan (i.e. $50 in this
example). The monthly payment of $50 is used to pay the interest and whatever is
left is used to pay part of the remaining debt. Hence the first month he pays 1.5% of
$1000 in interest. That is $15.00 in interest. So, the remaining $35 is deducted from
his debt, which leaves him with a debt of $965.00. The next month he pays interest
of 1.5% of $965.00, which is $14.48. Hence, he can deduct $35.52 (which is $50 -
$14.48) from the amount he owes.
Write a Java application program that will ask you the loan amount and the interest
rate. Then the program will tell you - The monthly payment, How many months it
will take you to payoff the loan, The total amount of interest paid over the life of the
loan. Program should also indicate the final payment as in many cases the final
payment at the end of the loan would not be exactly the normal monthly payment
and also the total paid (initial loan plus the interest). You do not need to output the
monthly interest paid and the remaining debt. Your output should look like the
following?(it may differ, if you use GUIs).
Here is an example?..
You have input these?.
Please type loan amount : 1000.00
Please type interest rate : 18.0
You should get an output like this?.
Loan amount : 1000.00
Interest rate : 18%
Monthly payment : $50.00
Final payment : $47.12
Life of loan : 24 Months
Total Interest paid : $197.83
Total paid at the end of loan: 1197.83
You may use GUI input and output boxes (JOptionPane) we have discussed in the
class. If you wish you may program in the ?old fashioned? style using the command
line window
Any help would be appreciated.

I understand how such "big" would seem overwhelming to a n00b... but it's really not that bad you know. I'd expect a succinct solution to be about 100 lines of code, and almost certainly less than 200.
First you need to make some decisions on some "non-functional requirements"... Are you thinking console (text based) application? I would recommend that, because it's simpler than a GUI or a web-app.
So first things first... as previously stated you need to write a program which accepts user input. If you're using java 1.6 (recommended) then see the Console class, if you're using 1.5 or earlier then I'd recommend using the readLine method of the BufferedReader class.
I'm not a fan of the Scanner class (new in 1.6). In my (oh so humble opinion) it introduces more problems than it solves for newbies... because it's methods don't do what you'd expect them to do, and the API doco is (IMHO again) just about useless, because it doesn't address the most common use-case.
So, your challenge for this morning (my time) is: Write a simple "command line" Java program that will ask you the loan amount and the interest rate. Then the program will just print out those two amounts.
For the "first cust" don't worry about design or anything, just hack it to get something working... post that, and we'll critique it to improve it's design... then we'll start doing some math.
So... The general approach is: Think a bit; do a bit; test a bit; (re)design a bit; retest... then move onto the next bit. Moving quickly through these steps with small pieces of functionality gives the assurance that what you've done so far is basically right... as you gain experience you can bite off successively bigger chunks of functionality, but that basic development pattern remains the same.
Hope that cheers you up some... it's really not that hard...
Cheers. Keith.

Product type 62A - Interest Rate SWAP

In Standard SAP for Product type 62A Interest rate SWAP, I see 4 transaction types delivered by SAP - 300-Payer, 301-Receiver, 302-Basis, 303 - SWAP for Swaption.
Can anyone explain these different types?
Thanks
Kalyan

Hi Kalyan,
There are 4 transaction types as you mentioned for product category 620.
Receiver - You receive fixed rate. i.e. Incoming leg is fixed and outgoing leg is Variable.
Payer - You pay fixed. i.e. Outgoing leg is variable and Incoming leg is fixed.
Basis - Both the legs are variable
Swaption - An option on the Swap. Similar to any other option, you have the right to exercise the Swap if you want or also hold back if you will incur a loss by exercising. For this right, you pay a premuim to enter the contract.
Hope this helps!
Best regards!
Sandip

Automatic Interest Rate Fixing - TJ05

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