Loan First entry in TBB1

[Ahmed_Samir]

Dear Experts,

Is it applicable to post the below entry while running TBB1 using interest rate instrument:

Dr. Accrued bank interest            500,000

Dr. Bank                                       20,000,000

     Cr. Loan Account                              20,500,000

And after running TPM44 at the end of the month:

Dr. Bank interest exp                    500,000

     Cr. Accrued Bank interest                 500,000

And during contract closure:

Dr. Loan                                       20,500,000

     Cr. Bank                                             20,500,000

------------------------------------------

I tried to use interest capitalization, it posts similar entries but except the first entry the system do it as below:

Dr. Bank                                       20,000,000    (No Accrued account)

     Cr. Loan Account                              20,000,000

how to map the above on SAP and what are the update types used?

Thanks in advance and Regards,

Ahmed Samir

[former_member200703]

Hi Ahmed

Why you are going to post the whole interest while opening the loan ... loan interest is accrued as time passes .. you should not accumulate them on the loan liability when you receive the loan at the beginning .. they should be accrued while time passes..

As per accounting standard and loan  definitions that above requirement looks violating the IFRS ,

Regards

Mahmoud EL Nady

[Ahmed_Samir]

Dear Mahmoud,

it will be great if you can provide me with IFRS standard regarding this topic.

Really appreciated.

Ahmed Samir

[former_member198450]

Hi Samir,

Check out below option i change condition for interest capitalized and its work the way you expected.

Please flow of cash.

I hope this fulfill your requirement.  I have not make any much changes in customization apart from payment prospect.

Regards,

Jain

[Ahmed_Samir]

Dear Jain,

Thanks for your feedback, i know about this option but it is used when we want the interest amount per month to be at the start of the month , if you try the above using 2 or 3 month it will be as below, it will not post all the accrued interest exp at the start of the contract.

Regards,

Ahmed Samir

[former_member198450]

HI Samir,

,

In my case system posted as you requested. Please check above screenshot, for the accural  you shall try with TPM44, based on date selection it will calculate the same.

I hope i understand what you refer in last post.

Regards,

Jain

[Ahmed_Samir]

Dear Jain,

Can you try the same using more the period interval , for example:

the principle amount for the loan is 1,000,000

rate is : 20%

start term: 1.11.2015

end of term: 1.11.2016

frequency of the interest: monthly and interest is capitalized

The update rule is: Regular/Due date at start of the period.

Then check cash flow tab is it shows all the interest amount for the whole contract posts at the beginning of the contract.

Regards,

Ahmed Samir

[former_member198450]

Hi Samir,

Yes, it does.

Please find attached screenshot for your reference.

Regards,

Jain

[Ahmed_Samir]

Dear Jain,

I really appreciate your assistant, could you please test this one too.

Start term: 01.01.2016

End Term: 01.01.2020

Loan principal amount: 1,000,000

Interest rate:  8%

Interest Frequency: Monthly / Months: 6

Repayment structure: Installment

Repayment Frequency: Monthly / Months: 6

Sure the interest is capitalized and The update rule is: Regular/Due date at start of the period.

how display all the balance for the interest at 01.01.2016.

i'm not sure it's going to work actually but if you do it, it will be just amazing for me !

Thanks and Regards,

Ahmed Samir

[former_member198450]

Hi Samir,

Please find screenshot for your reference.

I hope this what you are looking for.

Regards,

Jain