IS-Banking / Reference Interest Rates

Hi,
We are having a problem when creating a condition group - time deposit settlement (T-code F9COGR2). We first defined a reference interest rate (for credit interest time deposit). We then changed the interest rate and when we run the settlement, interests are calculated with different interests rates for each day instead of using the last reference interest rate.
Since SAP Help says: "If there are multiple percentage rates for a reference interest rate on a valid-from date, the system uses the most recent one. For adjustments in previous periods, the system uses the percentage rate that was valid at the time when the adjustment was made", we are wondering if there is a way to use ONLY the last interest rate even if the valid-from date is in the past.
Thanks,
Maria.-

Hi again Gurus!
Scenario changed.
\We have uploaded in our system the reference interest rates for EURIBOR 1 DAY, EURIBOR 1 WEEK, EURIBOR 1 MONTH and EURIBOR 2 MONTHS (OB83) for 21/02/2012. Then we executed JBYC. After selecting YC and currency for 21/02/2012 we choose u201CDetailsu201D. In the Detailsu2019 tab we execute u201CInterpolate Int. Dateu201D for each day of the following 60s.
Does anybody know if there is a way to calculate and STORE daily this information in the system, per yield curve and date?
Our client wants every day to calculate the interpolated days based on daily yield curve and to report it. Is this possible in TRM?
Special thanks,
George

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Link between Interest indicators and Reference Interest Rate

Hi
In case of bank interest calculation, i have defined Interest indicator as AX for Axis bank. This is the 1st step in Account Balance Interest Calculation
Now in 4th step, i defined Reference Interest Rates AX. In Reference interest rate, we defined interest rate (through Tcode ob83).
Now i want to know where we link interest indicator (defined in 1st step) and Interest rate defined in step 4.
In bank GL also, we Interest indicator & in FF67, there is no field for reference interest tab. So how SAP picks interest rates.

Its in Specify Time-Based Terms

Reference Interest Rate in FS Product

Hi, Experts!
I want to use reference interest rate in my loan product. What customization of FS Product and Reference Interest Profile I need to do for it?
Thanks!

Hi
To my knowledge it will create the Transport Number.
I am not aware without transport numbers.
Regards
Odaiah Pelley

Reference Interest rate

Hi Friends,
1. When I change a reference interest rate using OT25, it creates a transport request. Is there a way to just update the reference interest rates like we do any master data? I mean users should be able to update this without creating a transport.
2. Secondly if there is no change in the Reference rate, we have to still enter the old rate with a new date, otherwise TJ05 gives an error messge saying there is no rate for that date. For example, I have a reference rate which changes daily. So in the conidition type for 'Interest rate adjustment', I have set it up tochange 'daily'. But actually the rate may not change for 3/4 days. In such case, I want TJ05 to pick the last available interest rate. How do I do this?
I appreciate your help.
Kalyan.

Hi
To my knowledge it will create the Transport Number.
I am not aware without transport numbers.
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Odaiah Pelley

Reference Interest Rates Interpolation

Hi experts,
In our system we have upload Ref. Interest Rates for Euribor 1month (EURIBOR_1M), for 3 years, using transaction OB83. I would like ta ask if there is a tool in the TRM that can provide you the daily rate using the linear interpolation method.
Thanks for your interest,
George

Hi again Gurus!
Scenario changed.
\We have uploaded in our system the reference interest rates for EURIBOR 1 DAY, EURIBOR 1 WEEK, EURIBOR 1 MONTH and EURIBOR 2 MONTHS (OB83) for 21/02/2012. Then we executed JBYC. After selecting YC and currency for 21/02/2012 we choose u201CDetailsu201D. In the Detailsu2019 tab we execute u201CInterpolate Int. Dateu201D for each day of the following 60s.
Does anybody know if there is a way to calculate and STORE daily this information in the system, per yield curve and date?
Our client wants every day to calculate the interpolated days based on daily yield curve and to report it. Is this possible in TRM?
Special thanks,
George

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Is it possible to:
u2022     Define a yield curve for (monthly) average interest rate based on an reference interest rate that is entered daily.
u2022     in a function module read the value for this average interest rate that is in table JBD11
u2022     in the interest indicator customizing transaction OBAA assign the above function module
u2022     In the bank GL account assign the above interest indicator

Hi,
Interesting derivation though I haven't worked on this directly, technically this should work. But just a quick question, if you want the monthly average rate of the reference rate values entered for 30 days, you mean to say it is an average of all the values for the month? If that is the case, you need not define the yield curve at all.
You can estimate the par rate for a future date or a future period and find the discount factor for those days which can be used to determine the net present values of a future flow using the yield curve as the base.
But for your case, if it is just the average,   pick the reference interest rate values and find the average in your function module itself. I dont see a need to use the yield curve.
Regards,
Ravi

Unable to edit cash flow in Interest Rate Instrument

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
These flow has NOT been posted to accounting still.
Any one has any ides/suggestion why system is behaving like this.
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.
Of course you can use fixed interest rate, too - in this case you need 1 interest-condition per period and have then to adjust the interest rate (which initially cannot be 0).
Regards,
Lorenz

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

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.
Of course you can use fixed interest rate, too - in this case you need 1 interest-condition per period and have then to adjust the interest rate (which initially cannot be 0).
Regards,
Lorenz

TRM - system is not considering variable interest rates

While creating an interest rate instrument in (TRM - Money Market), Tab u201Cstructureu201D with a variable interest rate, when I check in u201CCash flowu201D tab for the interest rates applied appears zero. The system is not considering the interest rate although this information is included in S_ALR_87008537 - Enter Reference Interest Rates.
The variable interest rate our client is using is EURIBOR one month (EURIBEUR01).
Can anyone help me with this?
Thanks in advance,
Daniel

Hi Daniel,
For updating cash flow with Ref Int Rate, please caryout following:
a. In customization, company code general settings, make Ref Int Rate update automatically.
or
b. If you have not set this indicator, kindly update your contract with Tcode TJ09.
I hope this will solve your problem.
Regards
Prasad AV

FI Bank Account Interest Calculation

How to customize compound interest calculation on bank accounts in the Bank Account Interest Calculation?

Hi,
The process for configuring the system to calculate Interest on bank account is as follows:-
1.Define reference Int Rates
2.Enter Interest Values
3.Prepare GL account balance interest calculation for interest posting
Then you execute F.52 for calculating the interest by providing the required parameters
Regards
Phani

Error while creating interest rate instrument-Tcode-FTR_CREATE.

Error while creating interest rate instrument-Tcode-FTR_CREATE.
Thanks
Vikas

Hi Tushar
Please maintain the detail in TPM 32
Product category
Product type
General valuation class
Account assignment reference
Regards

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.
If I am selecting the frequency monthly in Interest Structure Tab and executing transaction code TJ05 to update the interest rate in the deal/Contract. It is not updating correctly. It is taking only one interest rate not alls.
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.
Could you please help me to update the interest rate on daily basis and calculate the Interest Value accordingly and ay on Monthly?
Thanks and Regards,
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?
I could define it in the u201Cother flowsu201D label but since the contract is associated to a variable, I never know how much my 4% of tax stamp calculated over the interest amount will represent.
2.When creating leasing contracts, how can I calculate the VAT associated to the periodic payments?
3.Is there any way to make postings to a business partner directly as a Vendor or a costumer?
Thanks in advance,
Regards,
Daniel

Hi,
Please consider following:
1. Generally TDS flows are generated automatically by system based on a revenue/expense flow. By configuring Derived FLows in system you can achieve this. Then alongwith every interest payment flow a TDS flow also will be generated based on the rate defined in system with seperate flow type, you can define account posting in spro.
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:
a. In master data, assign role of Customer to the Business Partner
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

Automatic Interest Rate Adjustment

Hi All,
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".
Can you help further?
Thanks and Regards,
Saravan Kanuparthy.

IS-Banking / Reference Interest Rates

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