Bill of exchange in TRM

[Ahmed_Samir]

Dear Experts,

My customer has the below cycle.

If for example the company made a contract with the bank for loan (Interest rate instrument - 55A) with 1,000,000 for 5 years and the interest for the whole contract is 200,000.

The bank then make the customer sign a bill of exchange for the whole amount 1,200,000.

How to record that on the G/l level if the TBB1 transaction only book the below entry at the beginning of the contract

Dr. Bank                               1,000,000

Cr. Notes payable - Loan          1,000,000

Regards,

Ahmed Samir

[former_member198450]

Hi Samir,

Please refer below screenshot for your reference.

Just select interest rate for fixed amount 200,000. Rest of the process stand the same.

I hope i understood you correctly.

Regards,

Jain

[Ahmed_Samir]

Dear Jain,

Thanks, but in case the bank make the company sign a bill of exchange how can that be mapped in the company booking, like what will be the financial entries and the t.codes used , is it going to be as below:

for receiving the loan TBB1

at the end of the month TBB1/TPM44

till contract closure

or i'm missing something.

Regards,

Ahmed Samir

[former_member198450]

Hi Samir,

I think there should be standard accounting entries. Check with your Finance team how they record the same in book.

and we have to pass the entries with TBB1.

Regards,

Jain