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.
my question is: is bond under MM or securities? what's the difference between the two for bond? , in securities, we have condition type interest rate adjustment condition type, can condition type and condition group be used in MM product?

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:
1. To use 550 product type for bonds. But you'll have limitations in operations with this kind of bonds.
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!

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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

F150 dunning prog. and Gregorian calendar-wrong interest rates calculation

Hello everyone,
I have a problem with F150 - dunnning program and the Gregorian Calendar. I defined a interest rate indicator and I choose Gregorian calendar - 365 days in the year but SAP calculate 360 days and the interest rates are wrong u2013 to high. I have found the OSS note 82995 - Dunning program interest calc. on 360 not 365 days u2013 but as a matter of fact there is no solution which is appropriate for me because I want to print interest along with dunning letter. Maybe you had had the same problem and maybe you found solution.
Thank for you help
Tom

FSKB G/L Account Posting
this transaction is not working

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
You can find some like to fix this and is recalculated?
Much apreciated

Hi Julio
Please check that you have not edited the flow in cash flow tab.
fix the interest rate by t-code TI10
Regards
Bajaj pankaj

Payoff Product Type 55A interest rate instrument structure

Hello,
I´m using product type 55A Interest Rate Instrument and I have two questions:
1. Could you confirm me if is possible register a capital payoff no planning in this kind of product type? Which transaction could I used?
2.Is possible to used a partial disbursement? For example,
I get a loan for 3,000.00, at the beginning the first day I disbursement only 1,000.00 and 2 months later I disbursement 2,000.00. Then the loan calculate at the begining interest in base of the 1,000.00 and 2 months later calculate interest in base of 3,000.00.
Please help me.
Thanks
Best regards,
Adriana Rivera

Hello.
2.Is possible to used a partial disbursement? For example,
I get a loan for 3,000.00, at the beginning the first day I disbursement only 1,000.00 and 2 months later I disbursement 2,000.00. Then the loan calculate at the begining interest in base of the 1,000.00 and 2 months later calculate interest in base of 3,000.00.
1. You can use product type 56A as credit line and product type 55A as disbursment. You can link two product types with "Facility" field on "Administration" tab. Negative side of this method: you have several transactions. Interests are calculated for each 55A prod. type.
2. You can use product type 55A alone and "Other changes in capital structure" button. You can take several amount of money at any time. Negative side of this method - you are not able to show these 3,000.00 on "Structure" tab. But you can use "User exit X" tab where you can create field for this purpose. Positive side - interests are calculated as you wanted in your post above!!!

Example of hedge accounting for interest rate risk

Hello
Can anyoe give an example of hedge accounting for interest rate risk with values using a variable interest rate bond and a interest rate swap where a prospective and retrospective effectiveness test would be positive?
Thanks,
Arjan

not precisely - the respective flow is still in status 'S' @ TPM13, so in this sense it looks consistent. what is though strange that if you look into the tab 'Cash flow' in the Posting view, you can see a status 'Interest rate not adjusted for flow', though there is interest adjustment executed as per the screenshot attached.
/Renatas

Average interest rate yield curve for bank overdraft account

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

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

Tax calculated on the exchange rate differiences and interests

Hi Sap Guru's, I have a question for you.
NOTE:... my FI knowledge is not very good
I have postings with the line exchange rate difference and strange is, if the tax on the normal posting is calculated, there is also calculated tax on the exchange rate difference amount. Our FI experts said that this is not correct and the tax shouldn't be calculated on such postings like interests or exchange rate differences...
Any tip, where I can check or set this?
BR
Saso

Hi Saso,
Have a look with FS00 if the account for exchange rate is tax relevant.
When you change this to not tax relevant please test it in Q system perhaps it blocks automatecly posting
Paul

Carmax Score Question and Interest Rate Question...

So I have decided that I think I want to purchase my car at carmax and I wanted to see if someone with a similar credit profile had purchased from them and what was your interest rate I would like to try and get 3.49 or less on a 72 month loan My credit is as follows: 99k total credit92k available18k autol oan on time500 POLbk discharged May 2009 ...all on time since then29 inq My scores are around 685-710 income 195k (if they ask for stubs I will have a little problem because a chunk of my income comes from farmland and I have not received a K1 for 2015 yet, however I could show them a copy of a check over 100k if you think that would work) I want to get a 70k car with tax,title, license and I want to put down 25k So I will finance 45k.... do you think I can get a lower interest rate with my bk on my file ? BTW Penfed gave me 1.99 on 60 months on my 18 autoloan Not sure if carmax lenders, since they are not a CU, will give me the best interest rate What do you think ? Do you think they can give me a low rate (3.49 or lower) Thank you!!

mynameainttracy wrote:
Our car was included in our payment plan and the trustee got our interest rate down. That wasn't anything we had any input on. The trustee got the interest rate on his own with no input or request from us. Makes sense... creditors have little choice in the matter when it comes to decisions made by the trustee and/or the judge. I was mainly talking about if you went to the lender and asked them to lower your interest rate because you were filing... as said I doubt they'd agree on a secured debt.

Interest Report and Interest Rates

Hi
We are using SB1 2007A SP1 PL08 HFIX 2 with a Polish localisation.
There are a few menu options which are of special interest to me and presumably intended to work together:
Administration > Setup > Banking > Interest Rates
and
Banking > Incoming Payments > Interest Reports
Does anyone have any (english) documentation or experience of this function ?
The online help seems to be unaware these options exist. My guess is these menu options are restricted to the old 'C' cluster localisations.

Hi,
You are probably right. It could not be found under new 8.8 version help.
Thanks,
Gordon

Interest Rate

Dear All ,
I want to calculate the interest with dunning. But i do no understand the interest rate logic with dunning .
I need a calculation as below example . Is it possible ?
for example , Invoice = 1000 EUR Net due date =12.03.2007
Interest Rate Scale
Interval
From                         To                 Rate
11.10.2006     12.12.2006     10
13.12.2006     13.03.2007     10,3
14.03.2007     12.06.2007      10,5
13.06.2007     08.07.2008      11
09.07.2008     22.10.2008      11,25
Calculation method = (Invoice amount*interest in the period *days)/365
Thanks
Dash

Hi,
Please use Product Type - 55A with Product Category - 550 in Money Market where you can accommodate the Borrowing with Ref Int Rate. Can you clarify what mean "to see flows and posting entries seperately" Posting entry will be generated with the help of a flow. there are different report available for seeing flows and posting entries:
TPM13 - Flows
TPM20 - Posted entries
Regards
Prasad AV

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

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

Transfer Interest Rate instrument

Hi -
changes in underlying contracts require us to transfer certain Interest rate instruments (Prod Category 550) to a new company code. Other than changing the end date on the old transaction and creating a new transaction on the new company code is there a more efficient way of transferring data between company codes? Is there a copy from function to easier create the new transactions (I am currenly evaluating the GetDetail Bapis for Money MarketI Instruments)?
Appreciate the help

Hi,
...you're on the right path
With the BAPI_FTR_CREATEFROMDATA you can create new transactions.
In case you want to just mirror transactions to another CompCode, you can use the mirror-functionality (IMG: TM > General Settings > Transaction Management > Distribution of Mirror Transactions)
Regards,
Lorenz

Interest rate instru and securities

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