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

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Error while creating interest rate instrument-Tcode-FTR_CREATE.

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

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

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

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

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

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

Variable Interest Rate Instrument scenario

Dear All,
Is it possible to create an Interest Rate Instrument with variable interest rate which is calculated and adjusted monthly but interest amount is paid quarterly.
As per my understanding creating Interest Rate Instrument with Variable Interest Rate and which is adjusted monthly is not a problem. But if we do that the system calculates interest monthly and tries to post it monthly and also creates payment Request for each monthly cash flow.
This is the issue we want the system to calculate the interest monthly and also want that monthly accruals are calculated correctly but we want the interest to be paid quarterly and not monthly.
Request your thoughts on this kind of scenario.
Thank You
Regards
Sachin

Hi,
In your IRI instrument, maintain the interest condition to have a quarterly payout. In the structure tab, click on the conditions and then click on interest rate adjustment condition. In that you can specify the interest rate condition item to adjust to monthly update. Thus you can perform interest rate adjustments on a monthly basis and have the interest payout on a quarterly basis.
Regards,
Ravi

Bapi for Create Interest Rate Instrument Trans. TM_51

Hi guys,
I need to make a copy of an interest rate instrument, so far i can obtain the information with the bapis FTR_IRATE_DB_SELECT and BAPI_FTR_IRATE_GETDETAIL. Bu t i haven't found any bapi that can create a new interest rate instrument with all the information that already exist in the original (only a few field are going to be changed).
The only bapi that i found already is BAPI_FTR_IRATE_CREATE, but it doesn't contain the all the structures needed like the conditions detail (interest, final repayment and conditions) for example.
Maybe this could be resolved with a batch input...
Any suggestion?.
Regards,
Eric

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

BAPI for Create Interest Rate Instrument: BAPI_FTR_IRATE_CREATE

Hi guys,
I have problem about Create Interest Rate Instrument.
First I created program bdc and recording Tcode: TM_51 and I found problem that I can't record tab memo.Because real world meno can dynamic by Tcode: TBCN
I change method for Create Interest Rate Instrument by bapi:BAPI_FTR_IRATE_CREATE and this method user 2 structure :
BAPI_FTR_CREATE_IRATE and BAPI_FTR_CREATE
I can't found structure for fill memo description.
How can I create Interest Rate Instrument with memo?
Best regards

Hi Chutima,
I'm facing a similar problem, how did you resolved it?.
Regards,
Eric

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

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

How to Change Interest Rates for a loan with different disbursement?

Hi,
My user has a loan with Commitment capital of 35,000SGD with 1.3% interest Rate
On his first disbursement he allocation only 25,000 since interest rate is at Loan contract level 1.3% interest rate is use as well.
On his 2nd disbursement (for the remaining 10,000) he want to change interest rate from 1.3% to 1.5% which is not feasible, I think.
My advise:
1. Create a new contract with a capital amount of 10,000 and interest rate of 1.5%.
2. Reverse the disbursement for the original contract in order to change its commitment capital amount from 35,000 to 25,000 only.
The problem:
Upon reversal of the disbursement we got an error - "Account determination for paid disbursement not possible cotract 100701".
Can anybody know what should be the correct way to adjust the interest rate?
Or how can we get rid the error message to continue my proposal?
Thanks a lot.

Hi,
I assume you are using TCode - FNM3 for reversing the paid disbursement. Please check the Account Determination for Reversal posting keys/account symbols in SPROLoans MgtAcct Determination.
Regards
Prasad AV

Function to get the interest rate

hi;
iam trying to develop a function to return te rate of a loan knowing the original ammount, monthly payment, term.
basically what i need is the same as rate function in excel but i cant find the matematical function to calculate the rate
thanks
orestes

I found this formula on http://www.fonerbooks.com/solving.htm
the guy borrowed 100,000 for the mortgage and is making monthly payments of $830.33 for 15 years
looks like to solve for the interest they take the equation
P / M = [ i(1 + i)^n ] / [ (1 + i)^n - 1]
and make a guess at the interest rate and keep incrementing until the two sides match (or are close)
anyway I did in sql starting with and interated .01% interest rate and and incrementing by .01% for
10000 iterations and I ordered by the smallest difference between the two sides of the equation
and came up with 5.75% which I believe is correct
WITH variables AS (    SELECT 100000 M,
                              830.33 P,
                              180 n,
                              LEVEL * .0001 i
                         FROM DUAL
                   CONNECT BY LEVEL <= 10000)
SELECT i * 100 || '%' interest_rate,
         P / M,
         ( (i / 12) * POWER ( (1 + (i / 12)), n))
         / (POWER ( (1 + (i / 12)), n) - 1)
    FROM variables
ORDER BY ABS (
          (P / M)
           - ( ( (i / 12) * POWER ( (1 + (i / 12)), n))
             / (POWER ( (1 + (i / 12)), n) - 1)))
INTEREST_RATE     P/M     ((I/12)*POWER((1+(I/12)),N))/(POWER((1+(I/12)),N)-1)
5.75%     0.0083033     0.00830410087019666
5.74%     0.0083033     0.00829874710327995
5.76%     0.0083033     0.00830945655888689
5.73%     0.0083033     0.00829339525864719
5.77%     0.0083033     0.00831481416883952
5.72%     0.0083033     0.00828804533680813
5.78%     0.0083033     0.00832017369954276
5.71%     0.0083033     0.00828269733827184
5.79%     0.0083033     0.00832553515048413you could probably make this better so it doesn't have to do all the iterations if you use a recursive with or the model clause
and stop when the difference between the two sides of the equation is less then some number.
Edited by: pollywog on Feb 18, 2011 3:11 PM

Loan Management or Interest Rate Instrument

Hi all,
My company will implement SAP FSCM to manage our loan management, borrowing and lending.
Which one better and has more values between Loan management with product type 33A and 33B, or interest rate instrument with product type 55A and 55B.
Beside that, we also want to use TRM Facility.
Can anyone give me advice?
Thanks before..
Regards,
_fita

Hi,
Functionality wise Loans management gives better control and functionality generating interest based cash flows from SAP CML but you can not assign a loan contract to any TRM facility transaction and genrate Facility utilization.
In case of TRM Product Category 550 functionality Loan borrowing and lending is possible with assignment of Facility and interest conditions are limited to single against a transaction for a calculation period which is not in case of SAP CML products.
Regards
Prasad AV

Interest Rate

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